Last week, economists, developers, and lenders gave a straight-up look at where BC real estate is headed. While most of the focus was on commercial projects, there are big lessons for the residential side too — and if you’re buying or selling, here’s what you need to know.
Market Mood: A Whole Lot of Waiting
Rates have come down, but buyers are still holding out for more cuts. Developers and lenders are just as cautious, only moving forward with projects that are risk-free and shovel-ready.
Bottom line: deals are moving slower, whether you’re shopping for a condo or a family home.
Condo Presales: Discounts & Cancellations
Q2 saw 16,000 condo units launched but only 2,000 sold — just 14% absorption. Some developers are slashing prices (up to $100K off in Burnaby) to move inventory, while others face cancellations.
Key takeaway: buyers have leverage, but not every project will make it across the finish line.
Rentals: The Big Wave of 2025
Metro Vancouver is set to see 5,000+ new rental units next year, the largest surge ever. Studios are lagging, but bigger 2-bed+ units are leasing quickly as co-living and roommate setups gain traction. Incentives are getting more targeted too.
Why it matters: purpose-built rentals remain one of the safer long-term plays.
Lending & Financing: Playing It Safe
With CMHC insurance costs climbing, traditional debt looks attractive again. Developers are relying on 50/50 JV partnerships, and landowners who thought they’d flip fast are stuck waiting.
Takeaway: financing is cautious — and patience is key for both buyers and sellers.
Policy, Costs & Affordability
Municipal development fees and policy hurdles are driving prices higher. On top of that:
- Prices are still up 32% since 2019.
- Young workers are leaving BC for more affordable provinces.
Big picture: long-term affordability challenges aren’t going away anytime soon.
Bright Spots in a Slower Market
Even with hesitation everywhere, some areas are thriving:
- Larger purpose-built rentals
- Senior housing & multifamily projects
- Grocery-anchored retail (essentials)
- First Nations development partnerships
Looking Ahead: Short-Term Pause, Long-Term Push
Expect more discounts, cautious lending, and cancellations in 2025. But by 2026–2027, under-supply is expected to kick in, fueling demand and price growth again.
Bottom line: this is a market reset — those who can weather the next year will be in a great position for the rebound.
Final Thoughts
Right now, the smart move is patience and positioning. Buyers and sellers who make informed decisions today will be ready to win when the market turns back up.
As always, if you’re considering buying or selling a home in Abbotsford, feel free to reach out. We are here to help navigate these new mortgage rules and ensure you make informed decisions that suit your financial goals:
Contact Prime Property Group