The housing market in Metro Vancouver is experiencing significant challenges, with presale condo sales plummeting by more than 50% compared to previous years. Economic uncertainty and a widening gap between new-build and resale prices are causing potential buyers to hesitate, leading to a slowdown in sales activity.
According to Mike Stewart, a Vancouver-based Realtor with over two decades of experience specializing in presales, the decline in sales is particularly pronounced. He stated, “It’s a dramatic fall off,” during an interview with 1130 NewsRadio. The slowdown has manifested in longer sales cycles, with some projects even being stalled or cancelled outright. Stewart confirmed that project cancellations are becoming increasingly common, which adds to the uncertainty faced by buyers.
Despite the fact that presale deposits in British Columbia are generally protected—allowing buyers to recover their funds if a project is cancelled—Stewart emphasized the financial implications of lost time. “That’s money they could have invested years ago. So it’s very unfortunate,” he noted.
Factors Contributing to Market Struggles
The current struggles in the presale condo market are primarily attributed to a lack of buyer confidence and economic instability. Many investors and first-time buyers are reluctant to commit to projects that may not be completed for several years. Stewart pointed out that “people who are looking to make major purchases want certainty; they don’t want uncertainty.”
Developers are also grappling with rising costs, increased regulatory pressures, and declining resale prices. This combination of factors has made it increasingly difficult to market new developments. Stewart criticized both the provincial and federal governments for their role in the market’s challenges, stating, “If the government focused on the simple things like building our wealth, keeping costs low, life would be better for everybody.”
He further asserted that the current regulatory environment and taxation policies are hindering young people from achieving homeownership and establishing families. Additionally, external pressures such as U.S. tariffs and uncertainties regarding trade relations with the administration of Donald Trump have compounded the difficulties faced by developers and potential buyers alike.
Future Implications for Housing Supply
Looking ahead, Stewart warned that the ongoing slowdown in presale condos could have significant repercussions for Metro Vancouver’s housing supply in the coming years. He expressed concern that if fewer projects proceed, a surge in prices could occur as the population continues to grow. “Right now we have very little new housing creation occurring,” he explained.
Stewart cautioned that the policies currently in place, particularly those driven by the provincial government, may be sowing the seeds for future real estate price increases. “When the population is greater, there’s going to be new housing coming to market,” he said, highlighting the critical need for action to address the current trends.
As the market evolves, the combination of regulatory changes, economic conditions, and buyer sentiment will play vital roles in shaping the future of Metro Vancouver’s real estate landscape.
