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July 2025 Real Estate Market Insights

July 31, 2025

July 2025 Real Estate Market Insights 

Step into the July 2025 edition of Presale Pulse, where hosts Suzana Goncalves and Brittany Reimer provide you with a comprehensive look at where the market stands and where it’s headed. With continued macroeconomic uncertainty and tepid buyer activity, both presale and resale sectors are operating under cautious sentiment. 

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On the Run? Don’t Miss a Beat. Listing to this Episode. 

 

Macroeconomic Headwinds Tighten Market Conditions 

Economic growth is losing steam as the effects of anticipated U.S. tariffs ripple across the Canadian economy. GDP declined for a second straight month in May and is projected to shrink 0.3% in Q2. Vulnerable sectors like retail, manufacturing, and wholesale are feeling the brunt, leading to a rise in unemployment to 7% — the highest in nearly a decade outside of the pandemic years. 

Still, there’s a silver lining for developers. Recent adjustments to Development Cost Charges (DCCs) will allow for more manageable payment schedules — 25% due at permit approval and 75% deferred until occupancy or within four years — offering a lifeline to proformas under pressure. 

Presale Market Activity Remains Subdued 

June continued a pattern of slow presale activity with just 7 project launches totaling 514 units, consistent with the monthly average so far in 2025. However, this is significantly below the five-year average for June, which typically sees over 1,500 units come to market. 

Looking at the first half of 2025: 

  • 35 projects launched (vs. 60+ on average)
  • Just under 3,400 units released (less than half the norm)
  • Only 400 units sold, which is 85% below historical trends 

June was especially soft, with only 20 units sold — a 95% drop from the seasonal average. Same-month absorptions fell to just 4%, compared to a typical 27%, reflecting continued buyer hesitancy and elongated sales timelines. 

July Forecast: Low-Density, End-User Focused Inventory 

The July forecast calls for 7 project launches, adding approximately 600 new homes. Many are low-density offerings such as townhomes and wood-frame condos — the types of product that have performed best under current conditions. 

Inventory Climbs, Prices Dip: Strategy Is Key 

June saw continued softness in the resale market across both Greater Vancouver and the Fraser Valley. Inventory levels have grown significantly, tipping both markets into buyer’s territory and putting downward pressure on prices. In this more selective environment, success isn’t about volume—it’s about strategy. Projects that are performing well are those offering clear value: smartly designed homes, flexible deposit structures, and pricing that resonates with today’s buyers. Developers who stay agile and attuned to their audience are the ones winning attention—and sales. 

Presale Projects mentioned in this episode: 

Links mentioned in this episode:

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