Vancouver: Once One of the World’s Hottest Markets, Now Gradually Rebounding

Vancouver has long been recognized as one of the most active real estate markets globally, with consistently high transaction volumes. After a slowdown caused by government intervention and the COVID-19 pandemic, the market is now showing strong signs of recovery.

• Home sales in September increased by 46% compared to the same period last year.

• This marks the third consecutive month of year-over-year growth.

However, despite rising sales, prices continue to decline. According to the Real Estate Board of Greater Vancouver, the benchmark home price dropped by 7.3% in September year-over-year. This trend reflects lingering effects from a series of government policies introduced since 2016—measures intended to cool the market but which ultimately contributed to making Vancouver one of the most expensive cities on the continent.

Housing Policies: Promises From Both Major Political Parties

As affordability becomes a central issue, both the Liberal and Conservative parties have proposed new measures:

• Prime Minister Justin Trudeau pledges to increase the price limit for homes eligible for the government’s 10% shared-equity program to nearly $800,000 in high-cost markets like Vancouver and Toronto.

• The Conservative Party plans to expand mortgage options and ease qualification criteria.

However, the International Monetary Fund (IMF) warns that policies enabling buyers to borrow more often backfire—pushing home prices even higher and increasing household debt. The IMF emphasizes the need for a supply-focused strategy, including faster and more transparent approval processes and expanding purpose-built rental housing.

Toronto: Home Prices Hit New Records Despite Economic Uncertainty

While Vancouver grapples with affordability pressures, Toronto continues to experience a surge in both sales and prices.

According to the Toronto Regional Real Estate Board (TRREB):

• Total sales reached 11,083 transactions in September, up 42.3% year-over-year—a record high for the month.

• Detached homes led the market with 5,559 sales, a 55% increase from last year.

• Condo activity grew more modestly, rising 14.6%, highlighting a clear divergence between market segments.

The average selling price across the Greater Toronto Area climbed 14% to $960,772, marking the fourth consecutive month of record-breaking prices, surpassing the previous all-time high set in August.

TRREB President Lisa Patel attributes the strong performance to:

• Improving economic conditions

• Historically low borrowing costs

• A significant wave of pent-up demand following the spring downturn

However, she cautions that continued monitoring of COVID-19 developments and government responses will be crucial, as these factors could impact consumer confidence and employment conditions.