Vancouver’s red-hot housing market starting to cool
Frank O'Brien, Western Investor • May 18, 2021
Sales ‘ froth’ coming off as higher supply begins to meet buyer demand across Greater Vancouver, early April data shows.
As of April 15, home sales were down fractionally from the same period a month earlier, with 2,402 transactions compared to 2,663 sold as of mid-March, according to early data from the Greater Vancouver Real Estate Board, but the number of active listings increased to 10,301, up from 9,467 at the same time a month earlier.
The sales-to-listing ratio dipped to 59 per cent in mid-April, down from 62 per cent in mid-March.
The changes may seem minor, but April was the first month-over-month decline in sales in nearly a year and veteran real estate agents say the signals are clear.
“While the beat carries on, the tune is a little different this month. The volume has come down a little on Greater Vancouver’s real estate market,” said Kevin Skipworth, managing broker with Dexter Associates Realty in Vancouver, who supplied the early April data.
Kush Panatch, president of residential developer Panatch Group, said the market exuberance of the last 10 months, characterized by multiple offers and homes selling for well over the asking price, was based largely on buyers’ psychological fear of missing out.
“I saw some very intelligent people make less than stellar decisions,” Panache said, who noted he has seen similar wild, short swings in the market half a dozen times through his 30 years in Greater Vancouver real estate.
The fear of missing out will end soon, he predicted.
“You have already missed out,” said Panatch. He believes Metro Vancouver sales are now cycling into a “gentle market downturn” that will likely continue for some months.
“This is not a market correction, but the crazy froth in the market is ending,” he added.
Panatch, who sold out a 290-unit Port Moody condo development in the last year noted the final 100 units sold in less than three months.
“When we launched last March, just as the pandemic was starting, it would take buyers four to six weeks to make a decision to buy. By this March, decisions were being made in a day,” he said, even though he raised prices by from $10,000 to $50,000 per condo unit.
Panatch said a lot of developers who had delayed new strata project launches last year rushed to get their units onto the market as demand and prices began to increase last fall. There was also an increase in condo investors, he added, especially in pre-sales of concrete tower condo projects.
As a result, Metro Vancouver housing starts soared 115 per cent in March, to 3,711 units, compared to March 2020, and nearly 90 per cent of the supply was condo apartments.
This new strata supply, Panatch said, combined with rising new resale listings, will flatten Greater Vancouver’s steady increase in prices, which were 11 per cent higher in March than a year earlier.
“I don’t see prices coming down, ” he said.
Panatch and Skipworth both believe that a post-pandemic period, with an expected upturn in immigration and foreign buyers, and a strengthening economy, will begin the next up cycle in Greater Vancouver housing sales.
After soaring 128 per cent in March to set an all-time sales record, Greater Vancouver’s red-hot housing market is starting to cool down, early April data shows
As of April 15, home sales were down fractionally from the same period a month earlier, with 2,402 transactions compared to 2,663 sold as of mid-March, according to early data from the Greater Vancouver Real Estate Board, but the number of active listings increased to 10,301, up from 9,467 at the same time a month earlier.
The sales-to-listing ratio dipped to 59 per cent in mid-April, down from 62 per cent in mid-March.
The changes may seem minor, but April was the first month-over-month decline in sales in nearly a year and veteran real estate agents say the signals are clear.
“While the beat carries on, the tune is a little different this month. The volume has come down a little on Greater Vancouver’s real estate market,” said Kevin Skipworth, managing broker with Dexter Associates Realty in Vancouver, who supplied the early April data.
Kush Panatch, president of residential developer Panatch Group, said the market exuberance of the last 10 months, characterized by multiple offers and homes selling for well over the asking price, was based largely on buyers’ psychological fear of missing out.
“I saw some very intelligent people make less than stellar decisions,” Panache said, who noted he has seen similar wild, short swings in the market half a dozen times through his 30 years in Greater Vancouver real estate.
The fear of missing out will end soon, he predicted.
“You have already missed out,” said Panatch. He believes Metro Vancouver sales are now cycling into a “gentle market downturn” that will likely continue for some months.
“This is not a market correction, but the crazy froth in the market is ending,” he added.
Panatch, who sold out a 290-unit Port Moody condo development in the last year noted the final 100 units sold in less than three months.
“When we launched last March, just as the pandemic was starting, it would take buyers four to six weeks to make a decision to buy. By this March, decisions were being made in a day,” he said, even though he raised prices by from $10,000 to $50,000 per condo unit.
Panatch said a lot of developers who had delayed new strata project launches last year rushed to get their units onto the market as demand and prices began to increase last fall. There was also an increase in condo investors, he added, especially in pre-sales of concrete tower condo projects.
As a result, Metro Vancouver housing starts soared 115 per cent in March, to 3,711 units, compared to March 2020, and nearly 90 per cent of the supply was condo apartments.
This new strata supply, Panatch said, combined with rising new resale listings, will flatten Greater Vancouver’s steady increase in prices, which were 11 per cent higher in March than a year earlier.
“I don’t see prices coming down, ” he said.
Panatch and Skipworth both believe that a post-pandemic period, with an expected upturn in immigration and foreign buyers, and a strengthening economy, will begin the next up cycle in Greater Vancouver housing sales.
As the urban sprawl of Vancouver, B.C., and nearby Langley pushes land prices higher, Aldor Acres Family Farm’s decision to keep the farm in the family for another generation makes it an anomaly. However, the next generation to run the popular agri-tourist destination inherits the challenge of preserving the farm’s values while their way of life declines around them. “When I grew up in this area, 2 per cent of my high school class was non-agricultural,” says Albert Anderson, 82, who bought the Glen Valley farmland alongside his wife, Dorothy, 81, in 1977. “Now it’s the other way around; maybe 2 per cent of the people in this area are connected with agriculture.” Over the years, the Andersons have turned those 80 acres of land near Fort Langley into a destination with a pumpkin patch, seasonal market, wagon rides, and farm animals, emphasizing an educational experience for visitors. During the October high season, Aldor Acres can have 4,000 visitors in a day. The Andersons are in the process of transferring the farm business to their granddaughter, Melissa Anderson, 37. Across Canada, family farms are facing a similar transition. Data from RBC found that by 2033, 40 per cent of farm operators will retire, one of the biggest labour and leadership transitions in Canada’s history. The next generation to take over the farm will face the allure of rising land values. For many multi-generational farms, the strategy is to wait for the city’s expansion, says Elaine Froese, a Manitoba-based family farm transition expert. “I’ve worked all over Canada, (some family farms) are sitting on $20-million worth of land, and they’re very clear that they’re keeping the hog line going until that little village or town encroaches on them and then they’re selling out to developers,” she says. “That’s the reality.” Read More
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With over 30 years of experience navigating market highs and lows, Andy provides clarity on today’s buyer-friendly conditions and what sellers need to do to stand out. Here's what you'll find inside this video: Price Movement & Market Shifts: A detailed look at the Fraser Valley composite benchmark price, including year-over-year and month-over-month changes. Property Type Breakdown: Detached homes, townhomes, and apartments — from peak pricing to current values. Sales-to-Active Listings Ratio: Learn what this key indicator tells us about the current market — and how it affects your position as a buyer or seller. July Market Snapshot: Stats on sales volume, inventory levels, and days on market — all showing a slower pace, but more breathing room for smart decisions. Buyer Advantages: More choice, more time, and more negotiating power in this shifting market. Seller Strategies: Learn how pricing, presentation, and planning can still put you in a strong position. This comprehensive insight will empower you to make your best move in the Fraser Valley market! Dive deeper into the full July 2025 Fraser Valley Market Breakdown: https://rly.forsale/July-2025-Numbers Book a time to chat: https://rly.forsale/Chat-with-Andy
