March 2025 Presale Report: Buyers in Control as Multi Family Developers Test the Market

After a quiet January with no new launches, February marked a return of some activity in the presale market, though uncertainty still hangs in the air. Many multi family developers are experimenting with early incentives and tentative pricing, leaving room to scale back if demand doesn’t meet expectations. A number of planned launches have been postponed to later in the year or even to next spring.

Out of the 602 units released in February, only about 90 were sold, resulting in a 15% absorption rate—significantly lower than last year’s 50% absorption rate when more units were released. This slower pace reflects ongoing market uncertainty, with buyers taking more time to weigh their options and compare different projects before committing. Additionally, many buyers are expanding their search beyond a single market, exploring different regions to get the best value, which is slowing down early sales and making it harder for developers to build momentum.

Tariff Concerns Prompt Rate Cuts

Inflation in Canada saw a slight increase in January, rising to 1.9% from 1.8% in December. While this figure remains within the Bank of Canada’s 2% target, it was partly influenced by a temporary GST break. Without this tax relief, inflation would have been higher than 2%, underscoring ongoing cost pressures. Shelter inflation, which is the largest component of the Consumer Price Index (CPI), has been decreasing, but when the tax break is excluded, overall inflation remains elevated. This scenario is affecting both consumer confidence and the housing market, where buyers are carefully balancing concerns about affordability with changing financial conditions.

Despite inflation staying near the target, the Bank of Canada decided to reduce the overnight lending rate to 2.75% in March. This move was primarily in response to ongoing tariffs and the looming risk of a trade war. While most tariffs on Canadian goods are currently on hold, there are concerns that tensions will escalate, further straining the Canadian economy and contributing to broader economic uncertainty.

Buyers Take the Lead in a Shifting Market

The momentum from February’s project launches is expected to continue into March, with seven new developments set to release a total of 936 units. The Fraser Valley remains a hotspot, with most of the new projects concentrated in Surrey, Langley, and Abbotsford. However, Richmond stands out as a notable exception, with two projects launching—more than the entire market saw in 2024.

In Greater Vancouver and the Fraser Valley, resales saw an uptick of over 10% month-over-month. While February often brings a sales boost compared to January, overall sales are still below historical averages, reflecting ongoing market challenges. Inventory levels remain high, with the Fraser Valley boasting more than 8,000 active listings (55% above the 10-year average) and Greater Vancouver nearing 12,750 listings (36% above the historical norm). Despite this, pricing has remained relatively stable, with a slight decrease of just over 1% year-over-year. With increased inventory, more competitive pricing may start to emerge.

Looking ahead, the market continues to favor buyers, driven by broader economic trends, falling interest rates, and abundant inventory.

Ready to Explore Your Options?

With more choices, competitive pricing, and falling interest rates, now is an ideal time to take advantage of the buyer-friendly market. Whether you're considering presales, exploring different regions, or weighing your options, I’m here to guide you through every step.

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