The Market Is Softening — Here’s Why
We’re not in a crash. We’re in a rebalancing.
For the past decade, low rates, investor demand, and chronic underbuilding pushed prices into the stratosphere. Now? That dynamic is shifting — and fast.
Here's what's driving it:
- Inventory is up: In April 2025, Vancouver saw just 2,163 home sales — down 23.6% from last year and 28% below the 10-year average. At the same time, active listings are up nearly 30%.
- Prices are correcting: Vancouver’s benchmark price dropped 1.8% year-over-year, and Toronto saw a 4.1% year-over-year drop in average sale price.
- Confidence is low: Higher interest rates and economic uncertainty have pulled buyers to the sidelines — which is why the market feels so quiet right now.
Why So Much Inventory All of a Sudden?
It’s not magic — it’s math.
Years of condo-heavy development (think tiny “investor-grade” units) are now hitting the market, just as thousands of Airbnb units are being forced into the long-term rental pool thanks to new short-term rental rules in B.C. and Ontario.
Combine that with:
- Slower immigration growth (due to federal caps)
- Fewer international students
- A high cost of borrowing for investors
And you’ve got a lot of supply... with fewer people chasing it.
So, Where’s the Opportunity?
Markets like this don’t happen often. It’s not a seller’s market. It’s not quite a buyer’s market yet either. But it’s a positioning market — and if you know what to look for, there’s real opportunity.
First-Time Homebuyers
✅ No bidding wars
✅ No waived conditions
✅ Room to negotiate
If you’ve been locked out for years, this is your chance to get in without overpaying or rushing.
Move-Up Buyers
You’ve already got equity — and now, the house that was out of reach two years ago may be more affordable. With the spread between what you're selling and buying narrowing, this is a rare window to trade up strategically.
Investors
Yes, rent growth is slowing. But if you’re long-term focused, there are strong fundamentals:
- Discounted asset prices
- Motivated sellers
- Future rental demand recovering with population growth
In short: Buy smart, hold long, and avoid short-term panic.
Our Take? Don't Wait for the Headlines to Tell You It's Time
By the time mainstream media calls it a “buyer’s market,” the deals will be gone.
This isn’t 2020. There’s no stimulus package around the corner. But what we do have is a softening market, with motivated sellers and a more rational pricing environment.
If you're waiting for the perfect moment, you're probably going to miss it.
What You Should Be Doing Now
- Get pre-approved — and know your numbers
- Review the data — don’t rely on headlines
- Talk to a mortgage advisor — someone who can show you the upside and the risk
- Get your strategy in place — whether you buy in 30 days or 6 months
Let's Talk Strategy
This market’s not for the emotional. It’s for the educated. And we’re here to make sure you’re the latter.
👉 Book a free call with our team today
🎥 Or check out our full YouTube breakdown for the visual walk-through
Pilot Mortgage
Helping Canadians make smarter mortgage decisions, every step of the way.
