As the year draws to a close, all of us at Coastal Key Homes want to take a moment to wish you a very Merry Christmas and a joyful holiday season.

This time of year invites reflection - on the milestones we’ve reached, the challenges we’ve navigated, and, most importantly, the people who made it all meaningful. Whether you bought your first home, made a strategic move, invested in your future, or simply stayed curious about the market this year, we are grateful to have been part of your journey.

Real estate is ultimately about more than properties and transactions. It’s about homes, communities, and the lives built within them. We are fortunate to work in a profession that allows us to help people lay down roots, create stability, and move confidently into their next chapter.

As you spend time with family and friends over the holidays, we hope your days are filled with warmth, rest, and connection. May the season bring clarity, gratitude, and excitement for what lies ahead in the new year.

From our Coastal Key Homes family to yours - thank you for your trust and support. We look forward to continuing to serve our community with integrity, insight, and care in the year ahead.

Wishing you a Merry Christmas, Happy Holidays, and a prosperous New Year.

Warm regards,
Coastal Key Homes

Executive Summary

As we close out another month in the BC housing market, conditions continue to reflect a slow but deliberate recalibration rather than a sharp correction or rebound. Buyer confidence is gradually rebuilding, sellers are becoming more realistic on pricing, and the Bank of Canada’s latest decision to hold interest rates steady reinforces a sense of stability after an extended period of uncertainty.

This update breaks down what we are seeing on the ground across Metro Vancouver and the Lower Mainland, how the Bank of Canada’s stance impacts buyers and sellers, and what to watch as we head into the next quarter.

Bank of Canada: Rates Held Steady

The Bank of Canada’s decision to maintain its policy rate signals a clear shift in tone from aggressive inflation fighting to cautious economic stewardship. While rate cuts have not yet begun, the pause itself is meaningful.

Why this matters:

• Borrowing costs are no longer rising, allowing buyers to plan with greater certainty.

• Fixed-rate mortgages have already been pricing in future easing, which has helped stabilize monthly payments.

• The risk of additional shock to housing affordability has materially decreased.

For homeowners, this pause reduces refinancing anxiety. For buyers, it marks the first phase of a more navigable financing environment—even if affordability remains stretched by historical standards.

BC Housing Market Snapshot

Across much of BC, and particularly in Metro Vancouver:

• Sales activity is improving modestly compared to earlier in the year, though still below long-term averages.

• Inventory levels remain elevated in some segments, giving buyers more choice and leverage than they have had in years.

• Pricing is largely flat, with micro-markets diverging based on product type, location, and condition.

Well-located, turnkey homes continue to attract strong interest, while properties that are overpriced or require significant updates are spending more time on market.

Buyer Behaviour: Cautious but Engaged

Buyers are active, informed, and patient.

Common themes we are seeing:

• Conditional offers are back as the norm, not the exception.

• Negotiations are more balanced, particularly on price, completion dates, and inclusions.

• Many buyers are positioning themselves now, anticipating rate cuts later in the year or early next year.

This environment rewards preparation. Buyers with financing lined up and clear criteria are best positioned to act decisively when the right opportunity appears.

Seller Behaviour: Realism Is Key

Sellers who are pricing strategically are seeing results. Those anchored to peak-market expectations are often facing longer days on market and price adjustments.

Successful listings today share a few traits:

• Accurate pricing based on current, not historical, comparables.

• Strong presentation, staging, and professional marketing.

• Flexibility around terms to attract a wider buyer pool.

The market is no longer forgiving of overpricing but it remains rewarding for sellers who adapt.

What to Watch Going Forward

Looking ahead, several factors will shape the next phase of the market:

1. Inflation trends and how quickly they move toward the Bank of Canada’s target range.

2. Timing of the first rate cut, which could unlock sidelined buyer demand.

3. Spring inventory levels, particularly in family-oriented neighbourhoods and entry-level price bands.

4. Employment stability, which underpins buyer confidence more than headlines alone.

A gradual thaw, not a surge, is the most realistic expectation.

Final Thoughts

The BC housing market is transitioning from volatility to stability. While affordability challenges remain real, the combination of steady rates, improving selection, and more balanced negotiations has created one of the most rational buying and selling environments we’ve seen in years.

Whether you are considering a move now or planning for the months ahead, strategy matters more than timing headlines. A clear plan, local insight, and disciplined decision-making are the differentiators in today’s market.

If you’d like a more localized breakdown for your neighbourhood or guidance on how these trends impact your specific situation - reach out to the Ian Iacovitti of Coastal Key Homes anytime.

✅ If BoC Cuts Rates (or Signals More Cuts)

• More affordable mortgages & increased buying power: Lower rates generally reduce the cost of borrowing, meaning more people can afford larger homes or better qualify with tighter budgets.
  

• Stimulated buyer demand: especially among first-time buyers and “on-the-sideline” buyers — Many potential buyers have been waiting for rates to drop before re-entering the market; a January-renewed rate slide could “unlock” that pent-up demand.

• Potential rebound in resale activity: Lower borrowing costs tend to encourage more people to list, buy, and transact, tightening supply and pushing prices upward over time.

• Refinancing appetite among existing homeowners: Those on variable-rate mortgages (or nearing renewal) might see improved monthly payments, which can free up disposable income or enable upgrades.

⚠️ If BoC Holds Rates (or Signals Pause)

• Affordability remains tight — limited boost to demand: Without a rate cut, higher mortgage costs may continue to suppress buyer activity, especially among people already feeling stretched.
  

• Potential stability in prices, but slow market movement: The real estate market might see a gradual recovery, but perhaps without a sharp rebound; transactions may remain cautious while buyers wait for clearer signals.

• Continued pressure on renewals and first-time buyers: Those needing financing soon may still struggle to qualify or be forced to stretch budgets.

In short: A favorable BoC decision on December 10 could light a spark under Canada’s real estate market but a decision to stay put would likely result in a slower, more cautious trajectory.

🔧 How You Can Prepare YOUR Home (or Buying Strategy) Ahead of December 10

Given the uncertainty — but the possibility of meaningful change — now is a good time to prepare so you’re positioned to act quickly once the decision drops. Here are proactive steps to consider:

• Review your financing strategy

• If you’re on a variable-rate mortgage: estimate how a potential rate cut could reduce your monthly payments.

• If you’re nearing a fixed-rate mortgage renewal: consider whether locking in sooner or waiting might benefit you.

• Talk to a mortgage advisor about refinancing options, especially if a cut happens right after the BoC announcement.

• If you’re selling or thinking of selling: get your house ready now

• Do routine maintenance, touch up paint, fix any visible flaws a well-presented homes tend to attract buyers quickly when demand rises.

• Consider modest, high-impact updates (e.g. fresh landscaping, minor interior upgrades, decluttering) to maximize appeal for prospective buyers.

• Study local comparable listings & prices now and anticipate what will happen when demand rises

• Keep an eye on recent sales and inventory levels in your area (especially in markets like Greater Vancouver / North Vancouver).

• Start mapping out realistic pricing vs. desirable listing price so you’re prepared when buyer interest picks up.

• If you’re buying — get pre-approved or at least pre-qualified

• Lock in pre-approval so you can act quickly if rates drop and inventory starts moving.

• Watch your debt-to-income ratio and credit profile now, having these ready increases your chances of securing favourable mortgage terms once rates change.

🧭 What It Means for 2026: A “Wait and See” Market But Opportunity Ahead

• For buyers: If rates drop, 2026 could offer a great window to enter the market with improved affordability — especially if you’ve been priced out before.

• For sellers: If you prepare now, you’ll be well-positioned to benefit from renewed demand and possibly stronger competition among buyers.

• For current homeowners: Refinancing or upgrading might become more attractive again, giving financial flexibility.

• For the market overall: A decisive BoC move could restart momentum but sustained gains will still depend on factors beyond rates: inventory levels, economic conditions, and lending policies

As 2025 draws to a close, Metro Vancouver’s housing market is showing unmistakable signs of slowing momentum. The cooler trend that emerged in October carried straight through November, bringing with it softer sales activity, longer days on market, and a continued recalibration between buyers and sellers.

While the final month of the year is historically quiet, this November paints a broader picture of a market where patience, realism, and strategic pricing are becoming essential.

Sales Continue to Lag Behind Last Year

The Greater Vancouver REALTORS® (GVR) reports 1,846 residential sales across the region in November 2025. That’s a 15.4% decline from the 2,181 sales posted in November 2024 and sits 20.6% below the 10-year seasonal average.

Chief economist Andrew Lis highlighted the shift in buyer and seller behaviour:

“As the year draws to a close, the data continues telling a story of a market with many buyers patiently waiting and sellers adjusting to market conditions not seen in years... Buyers and sellers are striking deals when their expectations are aligned and reflective of the current market, not the market of years ago.”

In other words, the market is doing what markets eventually do: correcting to reality.

Inventory Rises, Giving Buyers More Choice

November saw 3,674 new listings, nearly unchanged year-over-year and slightly above the long-term average. What’s more notable is overall inventory.

There are now 15,149 homes listed on the MLS®, which is a substantial 14.4% increase compared to last November and 36.3% above the 10-year seasonal average.

For buyers, this means more options, less competition, and more leverage in negotiations.
For sellers, it means pricing sharply and showcasing value matter more than ever.

Sales-to-Active Listings Ratio Suggests Softening Prices

The sales-to-active listings ratio (SALR) across all property types landed at 12.6% in November.

• Detached: 9.7%

• Attached: 13.6%

• Apartments: 14.8%

Historically:

• Below 12% → downward pressure on prices

• Above 20% → upward pressure

With ratios hovering near or slightly above the lower boundary, it’s no surprise prices have continued to soften.

Home Prices Edge Down Across Most Segments

The composite benchmark price for all residential properties in Metro Vancouver now sits at $1,123,700, representing:

• 3.9% decrease year-over-year

• 0.3% decrease from October

Breaking down by property type:

Detached Homes

• Sales: 541 (↓13.6% YoY)

• Benchmark price: $1,900,600

  • ↓4.3% YoY

  • ↓0.4% MoM

Detached remains the segment feeling the most downward pressure as higher-price inventory sits longer.

Townhomes / Attached

• Sales: 350 (↓22.4% YoY)

• Benchmark price: $1,065,600

  • ↓4.4% YoY

  • ↑0.1% MoM

Attached homes remain relatively resilient, benefiting from buyers who have stepped down from the detached market due to borrowing constraints.

Condos / Apartments

• Sales: 945 (↓13.2% YoY)

• Benchmark price: $714,300

  • ↓5.2% YoY

  • ↓0.2% MoM

Condos continue to be the most active segment, but price softness suggests buyers are still approaching cautiously.

What’s Driving the Market?

Two main forces continue shaping the late-2025 landscape:

1. Higher Borrowing Costs Stabilizing

With interest rates holding steady — and no clear indication of near-term cuts — affordability remains the primary challenge for many would-be buyers. This keeps demand muted despite healthy inventory.

2. Shifting Buyer Sentiment

After years of intense bidding, record prices, and frantic market conditions, many buyers are taking a “wait-and-see” approach. As Lis notes, any significant revival in demand will depend on a notable change in buyer psychology.

What to Expect Heading into 2026

December is traditionally quiet, and the current trajectory suggests a calm end to a year marked by uncertainty.

Softer prices, healthy inventory, and cautious buyer activity will likely define the early months of 2026 — unless a major shift in rates or sentiment ignites demand.

For buyers, this could be a rare window of opportunity.
For sellers, preparation, pricing accuracy, and presentation are more critical than ever.

As we step into a brand-new year, all of us at Coastal Key Homes want to take a moment to wish you a Happy New Year and extend our sincere thanks for being part of our community.

The start of a new year is always an opportunity to pause, reflect, and look ahead with intention. Whether 2025 was a year of big milestones, careful planning, or simply putting down stronger roots, we’re grateful to have been part of your journey - whether through conversations, guidance, or helping you navigate the Lower Mainland real estate market.

Looking Ahead

The year ahead brings fresh possibilities. For some, that may mean exploring homeownership for the first time. For others, it could be upsizing, downsizing, investing, or simply staying informed as the market evolves. Whatever your goals, our commitment remains the same:

We aim to provide clear guidance, honest insight, and a client-first approach, without pressure or noise.

At Coastal Key Homes, we believe real estate is more than transactions. It’s about long-term planning, lifestyle alignment, and making confident decisions that support where you want to be in the years ahead.

Thank You for Your Trust

We’re incredibly grateful to our clients, partners, friends, and neighbours who continue to trust us with one of life’s biggest decisions. Your referrals, support, and conversations mean more than you know.

As we move into the new year, we look forward to continuing to serve the Lower Mainland with integrity, local expertise, and a coastal perspective that values both quality of life and smart decision-making.

From our team to you and your family!

wishing you health, happiness, and success in the year ahead.

Warm regards,
Coastal Key Homes