Metro Vancouver’s condo market is expected to finish 2025 with its highest level of unsold inventory in years, as per a recent report by Rennie.
The report highlights that while the region’s housing market may seem balanced, inventory trends paint a different picture. Rennie forecasts a significant 60% increase in unsold condo units across the region by the end of the year, rising from the current 2,179 to an estimated 3,493.
Ryan Berlin, head economist and vice president of intelligence at Rennie, stated, “If the current trajectory continues, we will see the highest level of unsold condo inventory in years by the end of 2025. This has implications for future construction, affordability, absorption, and overall growth in the region.”
The surge in unsold inventory is attributed to newly completed condos surpassing buyer demand. While rental constructions have seen growth, pre-sale activities remain slow. Despite extending the marketing window under B.C.’s Real Estate Development Marketing Act, factors like higher interest rates, policy changes, and investor uncertainty are contributing to the rising unsold inventory levels.
The report also mentions broader economic concerns that are adding to market uncertainty, such as prolonged labor market challenges, demographic shifts, and declining immigration numbers that could result in a population decrease in Metro Vancouver.
While lower interest rates from the Bank of Canada have boosted consumer credit growth, many homeowners are expected to face higher mortgage payments upon renewal this year. However, arrears rates, though rising, remain historically low. Additionally, the Canadian dollar continues to lag behind the U.S. dollar due to ongoing trade tensions.
Read the full report here.
Source link
This article was complied by AI and NOT reviewed by human. More information can be found in our Terms and Conditions.
