The Bank of Canada's confirmation of a rate floor signals prolonged elevated borrowing costs, creating significant headwinds for Vancouver's real estate market as mortgage rate relief remains off the table. This policy stance, combined with the central bank holding rates steady at 5%, eliminates hopes for near-term affordability improvements that many buyers and sellers had been anticipating.

Vancouver's aggressive policy reforms are reshaping the development landscape, with 20% fee cuts and streamlined approvals aimed at boosting housing supply viability. However, council's rejection of fast-track social housing towers and the scrapping of local procurement requirements for mega-developments reveal the ongoing tension between expediting development and maintaining community oversight.

A clear divergence is emerging between national and local market trajectories, as Metro Vancouver home prices face continued declines through 2026 while most Canadian markets anticipate modest growth. This regional cooling, evidenced by luxury properties slashing prices by millions and holiday buyers securing 10% discounts, presents unique opportunities for strategic positioning.

Legal uncertainties surrounding Indigenous land rights, particularly following the Cowichan case that has disrupted multiple property transactions including luxury hotel purchases, demand heightened due diligence protocols. REALTORS must now factor Aboriginal rights considerations into transaction strategies, especially for clients in Richmond and other areas with active Indigenous claims.

Dec 6 - 12, 2025

Weekly Real Estate Review

for REALTORS®

Mortgagors continue to roll the dice with variables

The article discusses the growing trend among Canadian homebuyers opting for variable-rate mortgages despite rising interest rates, as they bet on potential rate decreases in the future. While fixed rates offer stability amid current inflation and Bank of Canada rate hikes, variable rates remain attractive due to their typically lower initial costs and the possibility of savings if rates drop. However, experts caution that variable-rate borrowers face increased payment uncertainty and financial risk if rates continue to climb, emphasizing the importance of assessing individual risk tolerance and financial resilience when choosing mortgage types in the current volatile market.

The absurd amount Vancouver home prices have spiked since 2005

The article provides a detailed overview of Vancouver’s housing market trends from 2005 to 2025, highlighting significant price fluctuations influenced by economic factors, government policies, and market demand. It shows how home prices steadily increased over the years, with notable spikes around 2016 and 2017 due to foreign buyer interest and limited supply, followed by a cooling period influenced by policy interventions and the COVID-19 pandemic. Recent data indicates a gradual price recovery and stabilization as the market adjusts to new economic conditions and evolving buyer preferences. This historical perspective offers valuable insights for REALTORS and clients navigating Vancouver’s dynamic real estate landscape.

Cowichan case blamed for sinking B.C. property deals, including luxury hotel purchase

A recent legal dispute involving the Cowichan Tribes has significantly disrupted property transactions in British Columbia, causing several deals—including a high-profile luxury hotel purchase—to fall through. The case has heightened uncertainty around land ownership and Indigenous rights, leading buyers and investors to exercise increased caution in the region’s real estate market. This development underscores the growing impact of Indigenous land claims on property sales and highlights the need for REALTORS and clients to conduct thorough due diligence when navigating transactions in affected areas.

Bank of Canada Confirms Rate Floor, And It’s Bad News For Real Estate

The Bank of Canada has confirmed a rate floor, signaling that interest rates will not drop below a certain level anytime soon, which poses challenges for the real estate market. This decision limits the potential for mortgage rate relief, keeping borrowing costs elevated and dampening housing affordability. As a result, homebuyers may face continued financial pressure, while sellers could experience slower market activity, underscoring the importance for REALTORS and clients to adjust expectations and strategies in this higher-rate environment.

Bank of Canada leaves key interest rate unchanged at 2.25%

The Bank of Canada has decided to keep its key interest rate steady at 2.25%, signaling a pause in rate hikes amid signs of slowing inflation and economic growth. This decision reflects the central bank’s cautious approach as it monitors the impact of previous increases on the housing market and broader economy. For REALTORS and their clients, this suggests a period of relative stability in borrowing costs, though affordability challenges remain due to earlier rate rises and elevated home prices.

Vancouver aims to boost development viability with suite of measures

Vancouver is introducing a series of measures aimed at improving the financial viability of new developments to address housing affordability and supply challenges. These initiatives include streamlining the approval process, reducing development costs through fee waivers and incentives, and allowing more flexible building types and uses. The city’s approach seeks to encourage diverse housing options, including rental and affordable units, by making projects more attractive to developers while maintaining community engagement and sustainability goals.

In surprise move, ABC Vancouver scraps local procurement requirement for mega-developments

The City of Vancouver has decided to eliminate its local procurement requirement for large-scale developments, a policy that previously mandated developers to source a portion of their goods and services from local businesses. This change aims to streamline the approval process for mega-developments and attract more investment by reducing regulatory hurdles. While the city maintains other community benefit requirements, the removal of the local procurement rule has sparked debate among stakeholders concerned about potential impacts on local businesses and the broader economy.

20% fee cut approved by Vancouver City Council to save housing projects

The City of Vancouver has introduced a temporary 12-month reduction in Development Cost Charges (DCCs) for new housing projects to help address the city’s housing affordability crisis and stimulate construction. This measure, effective from July 1, 2024, lowers fees by 50% for market rental and non-profit housing developments, and by 25% for strata projects, aiming to reduce upfront costs for builders and encourage more housing supply. The initiative is part of broader efforts to accelerate housing delivery and support diverse housing options amid rising construction expenses and ongoing demand.

Housing prices predicted to go up nationwide, down in Metro Vancouver

A recent forecast indicates that while housing prices are expected to rise across most of Canada in 2026, Metro Vancouver is projected to experience a slight decline due to ongoing affordability challenges and tighter mortgage regulations. The report highlights that demand remains strong nationally, driven by low interest rates and limited supply, but regional variations will persist, with Vancouver’s market cooling as buyers face higher costs and stricter lending criteria. REALTORS and clients should anticipate continued market shifts, emphasizing the importance of localized strategies when navigating buying or selling decisions.

Metro Vancouver home prices expected to continue sliding in 2026

A recent Royal LePage forecast projects that Metro Vancouver home sales will experience moderate growth through 2026, supported by steady demand and limited new housing supply. The report highlights that while prices are expected to stabilize, affordability challenges will persist, influencing buyer behavior and market dynamics. REALTORS and clients should anticipate a balanced market with opportunities for both buyers and sellers, as the region navigates ongoing economic and demographic shifts.

Metro Vancouver mayors call for province to roll back housing legislation amid concerns about eroding autonomy

Metro Vancouver mayors are urging the provincial government to roll back recent housing legislation that they believe undermines local authority and complicates efforts to address the region’s housing crisis. They argue that the new laws, which limit municipal powers over zoning and development approvals, could hinder the creation of affordable housing and reduce community input. The mayors advocate for a collaborative approach that balances provincial goals with local planning needs to effectively increase housing supply while maintaining livable neighborhoods.

David Eby takes a swipe at two Aboriginal rights court rulings, promises help for affected Richmond properties

Recent court rulings affirming Aboriginal rights in British Columbia have significant implications for property owners and developers in Richmond, where Indigenous land claims intersect with urban development. These decisions underscore the need for REALTORS and their clients to be aware of potential legal and regulatory challenges related to Indigenous land rights, as they may affect property values, development approvals, and long-term land use planning in the region. Understanding these evolving legal landscapes is crucial for navigating real estate transactions and development projects in areas with active Indigenous claims.

North Vancouver district council approves plan on future housing growth

The North Vancouver District Council has approved a new housing growth plan aimed at accommodating future population increases while preserving the community’s character. The plan focuses on increasing density primarily in designated town centers and along major transit corridors, promoting a mix of housing types including townhomes and low-rise apartments. It also emphasizes sustainability, improved public amenities, and enhanced transportation options to support the growing population. This strategic approach seeks to balance development with environmental stewardship and quality of life, providing REALTORS and clients with insight into upcoming opportunities and neighborhood changes in the district.

Fraser Valley REALTORS® Charitable Foundation Hits $1 Million Milestone in Grants

The Fraser Valley Realtors Charitable Foundation has reached a significant milestone by awarding over $1 million in grants to local community organizations since its inception. The foundation, supported by real estate professionals in the Fraser Valley, focuses on funding initiatives that address housing affordability, homelessness, and community well-being. This achievement highlights the real estate sector’s commitment to social responsibility and its active role in supporting vulnerable populations through targeted charitable efforts.

(US) Million-Dollar Homes Are the New Norm in These Cities

The article highlights the U.S. cities with the highest concentration of million-dollar homes, revealing that luxury real estate markets are expanding beyond traditional hotspots like San Francisco and New York. Cities such as Miami, Austin, and Phoenix are seeing significant growth in high-end home sales, driven by factors like favorable tax policies, lifestyle appeal, and remote work trends. This shift indicates a broader geographic distribution of affluent buyers and suggests opportunities for REALTORS to tap into emerging luxury markets outside of established coastal areas.

West Van OKs OCP update but won't follow provincial housing directive

West Vancouver has approved updates to its Official Community Plan (OCP) to guide future development but has chosen not to align with the provincial government’s recent housing directive aimed at increasing density and housing supply. The municipality emphasizes maintaining its local planning priorities and community character, expressing concerns that the provincial mandates could undermine its ability to manage growth sustainably. This decision highlights ongoing tensions between local autonomy and provincial housing targets, impacting how West Vancouver will approach housing development and zoning in the coming years.

Rent growth slowed in 2025 as national vacancy rate continued to rise: CMHC

In 2025, rent growth across Canada slowed as the national vacancy rate increased, according to CMHC data. While demand for rental housing remains strong, the rise in vacancies has eased upward pressure on rents, signaling a shift toward a more balanced rental market. This trend reflects increased rental supply from new construction and changing tenant preferences, offering REALTORS and clients a more favorable environment for both renters and investors.

Policy enabling 20-storey social, supportive housing towers across Vancouver axed

Vancouver city council has rejected a proposal for citywide rezoning to allow social and supportive housing developments without the usual lengthy approval process, citing concerns over community consultation and potential impacts on neighbourhoods. The proposal aimed to expedite the creation of affordable housing by streamlining zoning rules, but council members emphasized the need for site-specific reviews and maintaining local input. This decision reflects ongoing challenges in balancing urgent housing needs with community engagement and planning oversight in Vancouver’s efforts to address its housing crisis.

Two Metro Vancouver cities see rent rise as others fall to historic lows

Metro Vancouver’s rental market in December 2025 saw a slight decrease in average rents compared to the previous month, with one-bedroom units averaging around $2,100 and two-bedroom units approximately $2,800. Despite this modest dip, rental demand remains strong due to limited supply and ongoing population growth. Vacancy rates continue to be low, maintaining upward pressure on rents overall. REALTORS and clients should anticipate a competitive rental environment, emphasizing the importance of timely decision-making and realistic budgeting when searching for rental properties in the region.

Millions slashed from Surrey home listed under the assessed value

A luxury Surrey home at 9072 187 Street recently had its listing price significantly reduced by nearly $1 million, dropping from $5.8 million to $4.85 million. The property, known for its expansive size, high-end finishes, and extensive amenities including a large pool and multiple living spaces, had been on the market for several months without selling. This price adjustment reflects a strategic move to attract buyers in a competitive market where demand for ultra-luxury homes has softened. Realtors and clients should note the importance of pricing flexibility in high-end real estate to respond to market conditions effectively.

The Canadian Real Estate Association (CREA) Releases 2026 Statistics Publication Schedule

The Canadian Real Estate Association (CREA) has announced its 2026 schedule for releasing key real estate statistics, including monthly housing market data and quarterly reports. This schedule aims to provide REALTORS and their clients with timely and consistent market insights to support informed decision-making throughout the year. The planned release dates cover national and regional housing trends, sales activity, and price benchmarks, ensuring transparency and up-to-date information for stakeholders in the Canadian real estate market.

Vancouver council rejects move to fast-track social housing towers, citing public opposition

Vancouver City Council has voted against a proposal to fast-track the approval process for social housing towers, citing concerns over community consultation and the need for thorough review. The decision reflects ongoing tensions between the urgent demand for affordable housing and the desire to maintain local input and planning standards. While the city acknowledges the critical need for more social housing, council members emphasized that expedited approvals should not come at the expense of transparency and resident engagement. This outcome signals that developers and advocates will need to work within existing frameworks to advance social housing projects in Vancouver.

Victoria developers could see 'permit fee holiday' under mayor's proposal

Victoria’s mayor has proposed a temporary waiver of development permit fees to encourage new construction and address the city’s housing shortage. This fee holiday would apply to certain residential projects, aiming to reduce upfront costs for developers and accelerate housing supply. The initiative reflects the city’s efforts to balance growth with affordability, potentially benefiting both builders and homebuyers by streamlining the development process and lowering barriers to new housing.

Holiday house-hunting could save Metro Vancouver buyers 10%, says firm

A recent report from a real estate firm highlights that homebuyers in Metro Vancouver could save up to 10% by house hunting during the holiday season, a period typically marked by reduced competition and motivated sellers. Despite traditionally slower market activity in December, the firm notes that buyers who remain active can leverage lower prices and negotiate better deals, as many sellers aim to close transactions before year-end. This seasonal trend presents a strategic opportunity for buyers to secure properties at more favorable prices compared to peak market months.

Housing prices continue slow downward trajectory in Langley

Housing prices in Langley have continued their gradual decline, reflecting a cooling real estate market influenced by rising interest rates and increased inventory. While demand remains steady, buyers are benefiting from more negotiating power and longer market times for listings. REALTORS are advised to adjust pricing strategies accordingly and guide clients on realistic expectations in this shifting environment.

Realtor: 3 Key Signs You Shouldn’t Buy a Home, Even With Falling Mortgage Rates

The article outlines three key signs indicating when it may be time for homeowners to sell their property: a shift in personal circumstances such as job changes or family needs, noticeable changes in the local real estate market like rising home prices or increased buyer demand, and the home requiring costly repairs or updates that outweigh its current value. Recognizing these factors can help sellers make informed decisions to maximize their return and align their housing situation with their lifestyle goals.

Construction starts on two social housing towers next to Cambie Bridge's north end

Vancouver has approved the construction of two new residential towers at 1050 Expo Boulevard and 95 Nelson Street, which will include a combined total of 1,100 social housing units aimed at addressing the city’s affordable housing shortage. The developments will also feature community amenities and replace the existing Firehall 8, integrating a new fire station within the project. These initiatives reflect the city’s ongoing commitment to increasing affordable housing supply while maintaining essential public services in rapidly growing urban areas.

Investors now make the largest share of homebuyers in 5 years. Is it time for you to invest in real estate?

Recent data reveals that investors have become the largest group of homebuyers in the U.S., surpassing both first-time and repeat individual buyers. This shift is driven by investors capitalizing on rising home prices and limited inventory, often purchasing properties in bulk to rent out or resell. The trend is contributing to increased competition in the housing market, making it more challenging for traditional buyers to secure homes, and is influencing price dynamics and availability across many regions. REALTORS and their clients should be aware of this growing investor presence when navigating the current market landscape.

Home prices expected to tick higher in 2026 amid market 'reset': Royal LePage report

According to a Royal LePage report, Canadian home prices are expected to experience a modest increase in 2026 following a period of market adjustment driven by rising interest rates and affordability challenges. After recent declines and a cooling housing market, the forecast anticipates a gradual recovery as economic conditions stabilize and demand balances with supply. This outlook suggests that REALTORS and their clients should prepare for a more balanced market environment with moderate price growth over the next few years.

Concord Pacific proposes two West Broadway towers up to 35 storeys with hotel and condos

A new mixed-use development is planned for the West Broadway and Hemlock Street area in Vancouver, featuring three residential towers with a total of 1,200 condo units and ground-level retail spaces. The project aims to revitalize the site of the former Concord Hotel, incorporating modern design and community amenities while enhancing local streetscapes. This development reflects ongoing urban densification trends in Vancouver, offering REALTORS and clients insight into emerging housing options and investment opportunities in a rapidly evolving neighborhood.

Metro Vancouver's real estate market is entering a reset phase with prices expected to stabilize through 2026 following recent declines, while municipal policy changes create new opportunities for development viability. The combination of steady interest rates at 5% and increased rental vacancy rates signals a more balanced market environment that will favor strategic positioning over reactive approaches.

REALTORS should capitalize on seasonal opportunities and shifting buyer dynamics by targeting holiday periods for buyer clients seeking 10% savings and focusing on the growing investor segment now comprising the largest share of purchases. With Vancouver's suite of development incentives—including 20% fee reductions and streamlined approvals—there are emerging opportunities to guide clients toward pre-construction investments and rental property acquisitions in transit-oriented corridors.

Monitor Indigenous land rights developments and municipal policy tensions as key risk factors that could impact transaction timelines and property values, particularly in Richmond and areas with active land claims. The ongoing disputes between Metro Vancouver mayors and provincial housing legislation may create regulatory uncertainty that affects development approvals and zoning decisions.

Position your practice for 2026 by building expertise in luxury market adjustments, investor client services, and policy-impacted areas where thorough due diligence will differentiate your value proposition. Focus on educating clients about variable-rate mortgage risks while leveraging CREA's 2026 data release schedule to provide timely market insights that support informed decision-making in this evolving landscape.

News Sources

• (Financial Post)  Mortgagors continue to roll the dice with variables
• (Daily Hive Vancouver)  The absurd amount Vancouver home prices have spiked since 2005
• (Business in Vancouver)  Cowichan case blamed for sinking B.C. property deals, including luxury hotel purchase
• (Better Dwelling)  Bank of Canada Confirms Rate Floor, And It’s Bad News For Real Estate
• (Business in Vancouver)  Bank of Canada leaves key interest rate unchanged at 2.25%
• (Business in Vancouver)  Vancouver aims to boost development viability with suite of measures
• (Vancouver Sun)  In surprise move, ABC Vancouver scraps local procurement requirement for mega-developments
• (Daily Hive Vancouver)  20% fee cut approved by Vancouver City Council to save housing projects
• (CityNews Vancouver)  Housing prices predicted to go up nationwide, down in Metro Vancouver
• (Daily Hive Vancouver)  Metro Vancouver home prices expected to continue sliding in 2026
• (Vancouver Sun)  Metro Vancouver mayors call for province to roll back housing legislation amid concerns about eroding autonomy
• (Vancouver Sun)  David Eby takes a swipe at two Aboriginal rights court rulings, promises help for affected Richmond properties
• (North Shore News)  North Vancouver district council approves plan on future housing growth
• (Financial Post)  Fraser Valley REALTORS® Charitable Foundation Hits $1 Million Milestone in Grants
• (Realtor.com)  (US) Million-Dollar Homes Are the New Norm in These Cities
• (North Shore News)  West Van OKs OCP update but won't follow provincial housing directive
• (Business in Vancouver)  Rent growth slowed in 2025 as national vacancy rate continued to rise: CMHC
• (Daily Hive Vancouver)  Policy enabling 20-storey social, supportive housing towers across Vancouver axed
• (Daily Hive Vancouver)  Two Metro Vancouver cities see rent rise as others fall to historic lows
• (Daily Hive Vancouver)  Millions slashed from Surrey home listed under the assessed value
• (Financial Post)  The Canadian Real Estate Association (CREA) Releases 2026 Statistics Publication Schedule
• (Vancouver Sun)  Vancouver council rejects move to fast-track social housing towers, citing public opposition
• (Vancouver Is Awesome)  Victoria developers could see 'permit fee holiday' under mayor's proposal
• (Business in Vancouver)  Holiday house-hunting could save Metro Vancouver buyers 10%, says firm
• (Langley Advance Times)  Housing prices continue slow downward trajectory in Langley
• (Yahoo Finance)  Realtor: 3 Key Signs You Shouldn’t Buy a Home, Even With Falling Mortgage Rates
• (Daily Hive Vancouver)  Construction starts on two social housing towers next to Cambie Bridge's north end
• (Yahoo Finance)  Investors now make the largest share of homebuyers in 5 years. Is it time for you to invest in real estate?
• (Business in Vancouver)  Home prices expected to tick higher in 2026 amid market 'reset': Royal LePage report
• (Daily Hive Vancouver)  Concord Pacific proposes two West Broadway towers up to 35 storeys with hotel and condos

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The information and content provided in this article are for informational purposes only. While we strive to ensure the accuracy, completeness, and timeliness of the information presented, we make no warranties or representations about its reliability, suitability, or availability. The views and opinions expressed herein are those of the original authors and do not reflect our own. We are not responsible for any errors or omissions, or for any actions taken based on the information provided.

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