Sales of detached homes in February 2025 saw a 14.8 per cent decrease from the detached sales recorded in February 2024

Real Estate market conditions remain in a balanced territory.

That’s according to the latest monthly report from Greater Vancouver Realtors (GVR), which notes that after a 46 per cent year-over-year increase of new listings in January 2025, the number of newly listed properties on the MLS in Metro Vancouver rose more moderately this February.

GVR reports that February 2025 residential sales in the region saw an 11.7 per cent decrease from the sales recorded in February 2024. That total was also 28.9 per cent below the 10-year seasonal average.

“After the rush of new listings in January, home sales and new listings in February were closer to historical averages, which has positioned the overall market in balanced conditions,” said Andrew Lis, GVR’s director of economics and data analytics said in a news release.

With a .25% rate Bank of Canada rate cut rate reduction today, homebuyers may find slightly improved borrowing conditions while enjoying the largest selection of homes on the market since pre-pandemic times.

There was a 10.9 per cent increase in newly listed detached, attached, and apartment properties newly on the MLS in February 2025 compared to the properties listed in February 2024, according to the report.

The benchmark price for a single-detached house in Ladner last month was $1,398,600, almost unchanged from this January, while up just over three per cent from February 2024.

The February 2025 benchmark price for a single-detached house in Tsawwassen was $1,654,800, which was up just over three per cent from the previous month, while up 6.4 per cent compared to February 2025.

The February 2025 benchmark prices for a townhouse in Ladner and Tsawwassen were $1,041,400 and $1,007,800, respectively.

The benchmark prices for a condo last month in Ladner and Tsawwassen were $624,500 and $619,200, respectively.

If you're navigating this dynamic market, whether buying or selling, let's talk strategy. Our team can guide you through the most efficient processes, aiming to save you time, money, and hassle. Contact us today, and let's make your real estate journey successful!

Source: GVR & Michael Cowling

If you’ve noticed more "For Sale" signs popping up in your neighborhood lately, you’re not alone. January saw a surge in new listings across Canada, and according to the Canadian Real Estate Association (CREA), the looming threat of tariffs played a major role in that shift.

New supply jumped 11% from December to January—the biggest monthly increase (outside of COVID-19 impacts) since the late 1980s. Year-over-year, listings rose 12.7%, bringing the total number of homes on the market to 136,000. While that’s a healthy boost, it’s still below the long-term average of 160,000 for this time of year.

Meanwhile, home sales dropped 3.3% month-over-month, with most of that decline happening in the last week of January—right before the U.S. and Canada agreed to delay the implementation of tariffs. But any sigh of relief was short-lived.

The Tariff Factor: What It Means for Real Estate

On March 12, U.S. President Donald Trump signed executive orders imposing a 25% tariff on all steel and aluminum imports, including those from Canada. On top of that, a 25% tariff on all Canadian imports—including lumber—is set to take effect on March 4, along with a 10% tariff on Canadian oil.

The potential trade war between the U.S. and Canada isn’t just political—it’s economic, and the real estate sector is in the crosshairs. These tariffs could lead to higher construction costs, further slowing new home development at a time when Canada’s housing supply is already under pressure. If costs go up, expect new home prices to follow.

At a press conference in Montreal, Prime Minister Justin Trudeau reassured Canadians that the government is working to prevent these tariffs from taking effect. “If ever there are tariffs brought in Canada, our response will be immediate and strong, but we don’t want that. We are going to do the work to make sure they don’t come on,” he said.

A Market in Transition

So, how does this all play out in the real estate market?

CREA’s Senior Economist, Shaun Cathcart, points to two key trends: a significant influx of new listings and a slowdown in sales—especially in B.C. and Ontario. “The timing of that change in demand leaves little doubt as to the cause—uncertainty around tariffs,” he said. As a result, markets that had been gradually tightening since last fall are suddenly seeing softer pricing conditions again.

On a year-over-year basis, home sales in January were up 2.9%, while the national average price nudged up 1.1% to $670,064. But with sales dipping and inventory rising, Canada’s sales-to-new-listings ratio now sits at 49.3%—a clear shift from the mid-to-high 50s we saw at the end of 2024. That puts us firmly in balanced market territory.

What to Expect Moving Forward

Looking ahead, the spring market is still expected to pick up, but uncertainty around trade and economic conditions could keep some buyers on the sidelines.

“A trade war with our largest trading partner is a major dark cloud on the horizon,” said CREA Chair James Mabey. “While some buyers may hold off due to economic uncertainty, a softer pricing environment and lower interest rates could present opportunities for others.”

For buyers, this could mean a window to negotiate better deals in certain markets. For sellers, understanding local market dynamics will be crucial. If you’re thinking of making a move, let’s chat—I can help you navigate these changing conditions.

If you're navigating this dynamic market, whether buying or selling, let's talk strategy. Our team can guide you through the most efficient processes, aiming to save you time, money, and hassle. Contact us today, and let's make your real estate journey successful!

Source: RE/MAX.ca

What Happens When You Sell a House with a Mortgage in Canada

There are a variety of reasons that you might consider selling a house with a mortgage. The most common scenarios are when you need to move to a new location for a new employment opportunity, your family situation has changed with the addition of children or when your children head off to college or university or move out altogether. In each case, if your home no longer meets your needs, you may be contemplating breaking your mortgage contract. If you are considering selling a house with a mortgage, ensure you understand all the costs associated with breaking the mortgage contract.

The Costs of Breaking the Mortgage Contract

The cost of selling your home before the mortgage term ends and breaking the mortgage contract will depend on your mortgage type. If you chose your mortgage type without really understanding the ins and outs of an open versus closed mortgage, it’s time to get up to date on what you bought into when you signed on the dotted line.

Open Mortgages

When it comes to selling a house with a mortgage, if you have an open mortgage, you can sell your home without paying penalties for breaking the mortgage contract. That’s because an open mortgage is designed to provide greater flexibility without incurring financial penalties. While open mortgages still have a term, borrowers don’t have to wait until the mortgage matures to make changes.

You can make additional mortgage payments on a month-to-month or year-to-year basis without limitations, change your mortgage payment frequency, refinance, pay off, or break your mortgage before the end of your open mortgage term, all without incurring any prepayment penalties whatsoever.

However, the tradeoff for all this flexibility is that open mortgages come with higher interest rates than closed mortgages. Lenders charge a premium for allowing borrowers to break or change their mortgage agreement without penalties.

Open mortgages are usually chosen by homeowners who anticipate being able to make larger prepayments or pay off their mortgage sooner or whose life circumstances may require them to sell their homes before the end of the mortgage term.

Closed Mortgages

If you chose a closed mortgage for the lower interest rate or because you had no intention of selling before your mortgage term expired, you may be facing substantial penalty fees associated with wanting to break the mortgage now.

A closed mortgage has set conditions for the duration of the mortgage term. Once the mortgage contract is signed, the terms and conditions can’t be altered without incurring prepayment penalties.

Closed mortgages are known for their lack of flexibility. Lenders may offer some prepayment privileges, such as the ability to pay a certain percentage of the principal each year without penalty, but if you want to prepay more, pay off the mortgage entirely, refinance, or change the mortgage before the end of the term, a prepayment penalty will be levied.

Lower interest rates are the tradeoff for this lack of flexibility. Lenders are willing to provide more favourable mortgage interest rates on a closed mortgage in order to deter borrowers from breaking the mortgage contract or making additional prepayments.

Closed mortgages are usually chosen by homeowners who expect to remain in their recently purchased home for at least the duration of the mortgage term. This option is also optimal if you don’t anticipate making prepayments above and beyond what’s allowed in the mortgage agreement.

As indicated, if you have a closed mortgage, there will be penalties for selling your home before the term is up.

The highest cost will be the prepayment penalty – the fee for breaking the mortgage contract. The prepayment penalty can be thousands of dollars and will vary based on the terms of your mortgage contract. There will also be administrative fees, appraisal fees, reinvestment fees, and a mortgage discharge fee, which removes the charge on your current mortgage and registers a new one.

You may also have to repay any cash-back or home equity line of credit you received when you got your mortgage. These fees can make breaking a mortgage before the term ends VERY pricey.

Options for Breaking a Mortgage Contract

There are options if you are thinking about selling a house with a mortgage. Some mortgage lenders may allow you to extend the length of your mortgage while beginning a new mortgage in a Blend-and-Extend option. In this option, the interest rates for the old and new terms are blended, and you won’t have to pay the prepayment penalty. However, you still may need to pay administrative fees.

Unfortunately, not every mortgage lender offers this option, so the only other choice is to break the mortgage contract. In this case, you may get a lower interest rate on your new home, but you will have to pay a prepayment penalty for breaking the contract. If you have a choice in whether you sell your home before the mortgage term ends, ensure that the benefits of breaking the contract outweigh the costs of paying the prepayment penalty and any other associated fees.

Pros and Cons of Selling a House With a Mortgage

It can be tempting to break your mortgage or sell your home if you see a lower interest rate or a home that better meets your needs in the market. But in some cases, you may not have much of a choice in the matter, like if you have to move for work.

Here are some of the pros and cons of selling a house with a mortgage and breaking the contract:

Pro: You may be able to get a lower interest rate and pay off the mortgage faster if you keep the payments the same. When moving into a new house, it is possible that you could get a lower interest rate than on your previous mortgage, and if you budget your mortgage payments as if you are paying into your old mortgage, then you could pay off your new mortgage early.

Con: You could end up paying more in the long run because of fees and prepayment penalties. The fees for breaking a mortgage before the term ends are very high, and even if you make higher payments on your new mortgage, there is no guarantee that the interest saved will be enough to cover the penalties. However, your mortgage advisor can run the calculations for you.

Pro: You may be able to lock in at a lower interest rate for the new mortgage term. Selling your house allows you to look for a lower interest rate for your new home, saving you money in the long run.

Con: You may no longer qualify for a mortgage under current economic conditions. Times are tough, and it could be that you are selling your house not to buy a new one but to move into a rental. If this is the case, again, it’s vital to ensure that the benefits of selling your home early outweigh the costs of the penalties.

What Mortgage-Breaking Penalties May Look Like

Many homeowners who decide to post a for-sale sign on their front lawn might be surprised to learn that they face a sizeable mortgage-breaking penalty, mainly because of how interest rates have evolved since 2019. According to Canada Mortgage and Housing Corporation (CMHC), in June 2019, the average conventional fixed mortgage lending rate for a five-year term was 4.23 per cent. By June 2021, it had fallen to 3.26 per cent. In October 2024, it surged to 6.49 per cent, then dropped back to 3.99 per cent in November 2024.

In order to capitalize on higher interest rates, mortgage lenders can use various techniques to impose penalties on borrowers before their loans expire. Industry experts assert that the most common formula banks use is the difference between the lender’s present rate and the contractual rate, which is also referred to as an Interest Rate Differential (IRD).

If you have a closed mortgage with a variable rate, you will usually be forced to pay three months of interest. If you have a closed mortgage with a fixed rate, you will either pay three months’ worth of interest or the IRD amount, whichever is GREATER.

If you’re considering selling a house with a mortgage, you need to do the math:

Suppose you bought your property when interest rates were high, using a fixed-rate/closed mortgage option with a five-year term at 6.59 per cent. Let’s also suppose that you still have 24 months left in the term, and you still owe $300,000 but want to break the mortgage and sell now.

Three Months’ Interest Calculation:

Outstanding balance of your mortgage:

$300,000

Multiply the outstanding balance of your mortgage by the annual interest rate on your mortgage:

$300,000 x 6.59% = $19,770

Divide the answer by 12 months to get the monthly interest payable per year:

$19,770/12 = $1,647.50

Multiply the answer by 3 (months)

$1,647.50 x 3 = $4,942.50

Total Three Months’ Interest is $4,942.50

Interest Rate Differential Calculation:

Current mortgage interest rate:

6.59%

Current Interest Rate on a 3-Year Term:

4.74%

Rate difference between your mortgage rate and current interest rate:

1.85%

Multiply your mortgage balance by the rate differential to get the interest differential for 1 year:

$300,000 x 1.85% = $5,550

Divide this amount by 12 to get the amount for 1 month:

$5,550.00/12 = $462.50

Multiply this amount by the number of months left in your term:

$462.50 x 24 = $11,100

Total Interest Rate Differential Penalty is $11,100!

In this case of a closed/fixed rate contract, the estimated penalty for selling a house with a mortgage, is $11,100 – since it is the greater of the results for the Three Months’ Interest versus Interest Rate Differential calculations – a sizeable chunk of change!

To lighten your financial load, you can endeavour to trim your penalties by taking advantage of prepayment features. You can either pay a portion of the mortgage early without incurring penalties or max out your prepayment options, meaning you will lower the total balance without triggering added costs.

In the end, sellers should consider a couple of things before selling their home before mortgage expiration:

The first is requesting a payoff quote. Speak with your mortgage lender and obtain a payoff amount, which is the amount owed on the loan.

The second is calculating your home equity. How much equity do you have in your home? This could play an important role in your decision-making as if your property has substantially appreciated since you bought it and there’s a significant difference in the latest market value of your home and the remaining mortgage balance – even a large penalty like the one we calculated above could be justifiable.

When Do You Stop Paying a Mortgage When Selling a House?

If you pay off your mortgage BEFORE you sell your house, your mortgage payments stop when you pay off any applicable penalties, administration fees, appraisal fees, reinvestment fees and mortgage discharge fees.

If you break your mortgage while still owing, once you sell, part of the monies you receive will be used to pay off any relevant penalty fees, plus the remainder due on your mortgage, effectively ending the monthly payments on your old mortgage.

Additional Penalties for Selling a House Before 1 Year in Canada

While principal residences in Canada are not subject to capital gains when sold, investment properties do not share this benefit. So, if you’re considering selling a house with a mortgage – and it happens to be an investment property or a secondary home – if you sell it within a year of purchasing it, you’ll not only pay penalties for breaking the mortgage but you’ll also owe capital gains tax on 50 per cent of your profits.

Gather All the Information

Before selling a house with a mortgage, make sure you understand the costs associated with breaking your mortgage contract. It’s also a good idea to speak with a mortgage adviser, as they can provide you with valuable information needed to help navigate selling your home before the mortgage term ends.

Finally, check in with your real estate agent to ensure you have all your bases covered before you make a final decision.

If you're navigating this dynamic market, whether buying or selling, let's talk strategy. Our team can guide you through the most efficient processes, aiming to save you time, money, and hassle. Contact us today, and let's make your real estate journey successful!

Source: REMAX CA

After a 46 per cent year-over-year increase of new listings in January, the number of newly listed properties on the MLS in Metro Vancouver* rose more moderately in February helping keep market conditions in balanced territory.

The Greater Vancouver REALTORS (GVR) reports that residential sales in the region totalled 1,827 on Metro Vancouver’s Multiple Listing Service (MLS) in February 2025, an 11.7 per cent decrease from the 2,070 sales recorded in February 2024. This total was 28.9 per cent below the 10-year seasonal average (2,571).

“After the rush of new listings in January, home sales and new listings in February were closer to historical averages, which has positioned the overall market in balanced conditions,” Andrew Lis, GVR’s director of economics and data analytics, said. “With a potential Bank of Canada rate cut on the table for mid-March, homebuyers may find slightly improved borrowing conditions while enjoying the largest selection of homes on the market since pre-pandemic times.”

There were 5,057 detached, attached and apartment properties newly listed for sale on the MLS in February 2025. This represents a 10.9 per cent increase compared to the 4,560 properties listed in February 2024. This was 11.6 per cent above the 10-year seasonal average (4,530).

The total number of properties currently listed for sale on the MLS system in Metro Vancouver is 12,744, a 32.3 per cent increase compared to February 2024 (9,634). This is also 36.4 per cent above the 10-year seasonal average (9,341).

Across all detached, attached an,d apartment property types, the sales-to-active listings ratio for February 2025 is 14.8 per cent. By property type, the ratio is 10.7 per cent for detached homes, 18.5 per cent for attached, and 16.8 per cent for apartments.

Analysis of the historical data suggests downward pressure on home prices occurs when the ratio dips below 12 per cent for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months.

“Balanced market conditions typically bring a flatter price trajectory, and we’ve seen prices across all segments remain in a holding pattern for the past few months,” Lis said. “But with the active spring season just around the corner, it will be interesting to see whether buyers take advantage of some of the most favorable market conditions seen in years, and whether sellers change their willingness to bring their properties to market.”

The MLS Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,169,100. This represents a 1.1 per cent decrease over February 2024 and a 0.3 per cent decrease compared to January 2025.

Sales of detached homes in February 2025 reached 477, a 14.8 per cent decrease from the 560 detached sales recorded in February 2024. The benchmark price for a detached home is $2,006,100. This represents a 1.8 per cent increase from February 2024 and is virtually unchanged compared to January 2025.

Sales of apartment homes reached 976 in February 2025, a 10.6 per cent decrease compared to the 1,092 sales in February 2024. The benchmark price of an apartment home is $747,500. This represents a 2.8 per cent decrease from February 2024 and a 0.1 per cent decrease compared to January 2025.

Attached home sales in February 2025 totalled 359, a 10.9 per cent decrease compared to the 403 sales in February 2024. The benchmark price of a townhouse is $1,087,100. This represents a 1.2 per cent decrease from February 2024 and a 1.7 per cent decrease compared to January 2025.

If you're navigating this dynamic market, whether buying or selling, let's talk strategy. Our team can guide you through the most efficient processes, aiming to save you time, money, and hassle. Contact us today and let's make your real estate journey a success!

Source: Greater Vancouver Realtors

While recent tariff threats from the U.S. have created some uncertainty, Vancouver's real estate market remains well-positioned for stability and potential growth in 2025. With strong fundamentals and an improving economic outlook, opportunities are on the horizon for buyers and sellers alike.

Though U.S. President Donald Trump’s proposed tariffs have been delayed and may never come to pass, they’ve sparked discussions about their potential impact on local real estate. Industry experts acknowledge the volatility but see reasons for optimism.

"The real estate market has experienced economic fluctuations in recent years, but key indicators such as inflation and monetary policy are showing signs of stabilization," noted one industry analyst.

Despite the uncertainty, the market is showing resilience. Pent-up demand, rising household incomes, and prices that remain below their May 2022 peak suggest a solid foundation for real estate activity in the coming year.

While some experts caution that political instability may influence buyer psychology, the overall outlook remains positive. Lower interest rates and increased inventory will likely encourage hesitant buyers to enter the market.

According to recent industry projections, the Vancouver region is expected to significantly increase sales activity, with MLS transactions forecasted to rise from 40,173 in 2024 to 49,623 in 2025—a 24% jump. Home values are also expected to trend upward, with condo prices projected to grow by 4.4% and detached home values by 6.4%.

While economic factors like tariffs can create short-term concerns, Vancouver’s real estate market has consistently demonstrated its ability to adapt and thrive. With a balanced perspective and strategic planning, buyers and sellers can navigate these changes with confidence.

Source: RE/MAX Michael Cowling and Associates Realty