March 2025 Market Report

Welcome to our March Market Report

Canada and the U.S. have officially entered a trade war, with tariffs taking effect on Tuesday, March 4. The economic consequences—both immediate and long-term—are undeniable and demand strategic navigation.

This trade conflict is creating significant economic uncertainty, with widespread repercussions across industries, including real estate. Higher tariffs on goods and materials will drive up construction and renovation costs, disrupt supply chains, and slow economic growth. As a result, consumer and investor confidence is already wavering, leading to more cautious spending and investment decisions.

The housing market will not be immune. Rising construction costs, potential interest rate fluctuations, and shifts in market demand will directly impact housing prices, inventory levels, and overall market activity. Despite the Bank of Canada’s interest rate cut on March 12, consumer uncertainty remains high. Many submarkets experienced a rare decline in activity and pricing between January and February—something seen only a handful of times in the past two decades.

Month-over-month growth in Q1 traditionally signals the start of the spring market’s surge, yet consumer hesitation is undeniable, causing a cooling effect on the real estate market. Nonetheless, well-priced properties, particularly in the detached and townhouse segments, continue to sell. In every market, opportunities exist—it’s about recognizing and seizing them.

If you have any questions about how these market conditions may affect your specific situation, please don’t hesitate to contact me. I’m happy to discuss your property questions.

Last Month’s Listings and Sales

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News From the Real Estate Board

Home sales registered on the Multiple Listing Service® (MLS®) in Metro Vancouver rose over thirty per cent in December, compared to the previous year, signalling strengthening demand-side momentum to close out 2024.

“Looking back on 2024, it could best be described as a pivot year for the market after experiencing such dramatic increases in mortgage rates in the preceding years,” said Andrew Lis, GVR’s director of economics and data analytics. “With borrowing costs now firmly on the decline, buyers have started to show up in numbers after somewhat of a hiatus – and this renewed strength is now clearly visible in the more recent monthly data.”

“Disappointingly, sales came in shy of our forecasted target for the year, but the December figures signal an emerging pattern of strength in home sales, building on the momentum seen in previous months,” Lis said. “These more recent sales figures are now trending back towards long-term historical averages, which suggests there may still be quite a bit of potential upside for sales as we head into 2025, should the recent strength continue.

“Although sales activity had a slower start to the year, price trends began 2024 on the rise and closed out the year on a flatter trajectory. Most market segments saw year-over-year increases of a few per cent except for apartment units, which ended 2024 roughly flat. With the data showing renewed strength to finish the year however, it looks as though the 2025 market is positioned to be considerably more active than we’ve seen in recent years.”

The Board reports that for Metro Vancouver the sales-to-active listings ratio for the month of December were:

• 12.1% for detached homes

• 18.7% for apartments

• 23.6% for townhomes

(The sale to active ratio indicates what type of market each sector is in. 0-12% equals a buyer’s market, 12-20% equals a balanced market and 20-100% equals a seller’s market.)

If 2025 is your year to make a move, let us help you customize a successful plan. Call us to get started.

-Dan Pigott
604-862-4124
dan@pigottproperties.com

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