Advertise on podcast: The Vancouver Life Real Estate Podcast

The Canadian Housing Market Is Facing a Perfect Storm Canada's housing downturn is no longer simply a story of declining property values. A broader deterioration in household finances, employment and business confidence is beginning to reinforce the weakness already gripping real estate markets. The concern is not any single economic indicator. It is how these pressures are increasingly connected, creating a cycle that could deepen the housing downturn while undermining the construction activity needed for future supply. Financial distress is reaching levels not seen in more than a decade. Consumer insolvency filings rose 4% year-over-year in August, reaching their highest August total since 2009. Bankruptcies increased 11.3%, while the total liabilities associated with consumer insolvencies surged 34.7%. Automobile loan delinquencies offer another troubling signal. At 0.9%, the arrears rate has more than doubled over five years and, for the first time since 2015, surpassed credit card delinquency rates. These developments suggest financial pressure is extending beyond discretionary spending and into essential household obligations. Canada's labour market is adding to the strain. September employment fell by 68,300 positions, bringing cumulative job losses to approximately 110,000 over two months. Full-time employment declined by 71,000 over the same period, while total hours worked dropped 1.5% in September, the sharpest monthly contraction since April 2022. Perhaps more concerning, real aggregate wages have turned negative year-over-year for the first time since 2016, excluding the pandemic. For housing, the consequences are significant. Weaker employment reduces mortgage qualification capacity, declining purchasing power limits household spending, and financial uncertainty discourages major purchases. The effects are becoming increasingly visible in British Columbia. Metro Vancouver's foreclosure inventory has reached 1.92% of total listings, exceeding the previous 2012 high of 1.83% and establishing a new high over at least two decades. Across BC, September residential sales fell 8.9% annually to 5,254 transactions, while the average selling price declined 2.4% to $924,279. Total sales dollar volume contracted 11%. Commercial real estate is experiencing similar pressures. Metro Vancouver office vacancy has reached 11.8%, climbing to 14.8% downtown. Leasing activity has fallen 33% year-over-year, and new office construction has declined to its lowest level since 2011. The deeper risk lies in the relationship between today's weak demand and tomorrow's housing supply. As sales slow and financing costs remain elevated, developers are postponing projects and reducing construction activity. While weaker demand can improve affordability for today's buyers, prolonged underbuilding could create renewed supply constraints when economic conditions recover. That contradiction is becoming increasingly important as British Columbia approaches its October 24 provincial election. Proposals to tax completed but unsold condominiums have intensified debate over whether additional financial pressure on developers will improve affordability or further discourage construction. Meanwhile, monetary policy presents another complication. Despite deteriorating employment conditions, Canadian fixed mortgage rates have been rising. Major lenders, including BMO, have increased borrowing costs, even as financial markets weigh the possibility of additional Bank of Canada rate hikes. The October 19 inflation report could prove pivotal ahead of the central bank's October 28 decision. Canada's housing market is consequently confronting a difficult economic reality: falling prices may improve affordability, but declining employment, weakening incomes and higher financing costs can simultaneously make homeownership less attainable. The central question is whether Canada's housing correction can stabilize before financial distress, declining construction and deteriorating confidence turn a cyclical downturn into a more prolonged structural problem. _________________________________  Contact Us To Book Your Private Consultation: 📆 https://calendly.com/thevancouverlife Dan Wurtele, PREC, REIA 604.809.0834 [email protected] Ryan Dash PREC 778.898.0089  [email protected]  www.thevancouverlife.com

Canada's housing downturn is no longer simply a story of declining property values. A broader deterioration in household finances, employment and business confidence is beginning to reinforce the weakness already gripping real estate markets. The concern is not any single economic indicator. It is how these pressures are increasingly connected, creating a cycle that could deepen the housing downturn while undermining the construction activity needed for future supply. Financial distress is reaching levels not seen in more than a decade. Consumer insolvency filings rose 4% year-over-year in August, reaching their highest August total since 2009. Bankruptcies increased 11.3%, while the total liabilities associated with consumer insolvencies surged 34.7%. Automobile loan delinquencies offer another troubling signal. At 0.9%, the arrears rate has more than doubled over five years and, for the first time since 2015, surpassed credit card delinquency rates. These developments suggest financial pressure is extending beyond discretionary spending and into essential household obligations. Canada's labour market is adding to the strain. September employment fell by 68,300 positions, bringing cumulative job losses to approximately 110,000 over two months. Full-time employment declined by 71,000 over the same period, while total hours worked dropped 1.5% in September, the sharpest monthly contraction since April 2022. Perhaps more concerning, real aggregate wages have turned negative year-over-year for the first time since 2016, excluding the pandemic. For housing, the consequences are significant. Weaker employment reduces mortgage qualification capacity, declining purchasing power limits household spending, and financial uncertainty discourages major purchases. The effects are becoming increasingly visible in British Columbia. Metro Vancouver's foreclosure inventory has reached 1.92% of total listings, exceeding the previous 2012 high of 1.83% and establishing a new high over at least two decades. Across BC, September residential sales fell 8.9% annually to 5,254 transactions, while the average selling price declined 2.4% to $924,279. Total sales dollar volume contracted 11%. Commercial real estate is experiencing similar pressures. Metro Vancouver office vacancy has reached 11.8%, climbing to 14.8% downtown. Leasing activity has fallen 33% year-over-year, and new office construction has declined to its lowest level since 2011. The deeper risk lies in the relationship between today's weak demand and tomorrow's housing supply. As sales slow and financing costs remain elevated, developers are postponing projects and reducing construction activity. While weaker demand can improve affordability for today's buyers, prolonged underbuilding could create renewed supply constraints when economic conditions recover. That contradiction is becoming increasingly important as British Columbia approaches its October 24 provincial election. Proposals to tax completed but unsold condominiums have intensified debate over whether additional financial pressure on developers will improve affordability or further discourage construction. Meanwhile, monetary policy presents another complication. Despite deteriorating employment conditions, Canadian fixed mortgage rates have been rising. Major lenders, including BMO, have increased borrowing costs, even as financial markets weigh the possibility of additional Bank of Canada rate hikes. The October 19 inflation report could prove pivotal ahead of the central bank's October 28 decision. Canada's housing market is consequently confronting a difficult economic reality: falling prices may improve affordability, but declining employment, weakening incomes and higher financing costs can simultaneously make homeownership less attainable. The central question is whether Canada's housing correction can stabilize before financial distress, declining construction and deteriorating confidence turn a cyclical downturn into a more prolonged structural problem. _________________________________  Contact Us To Book Your Private Consultation: 📆 https://calendly.com/thevancouverlife Dan Wurtele, PREC, REIA 604.809.0834 [email protected] Ryan Dash PREC 778.898.0089  [email protected]  www.thevancouverlife.com

Canada's housing market is facing an extraordinary contradiction. After years of government efforts to improve affordability, home prices are finally falling across major Canadian cities. But as sales volumes collapse, so does a significant source of government revenue. British Columbia collected $3.33 billion in property transfer taxes during the 2021–2022 housing boom. For 2025–2026, that revenue is forecast to fall to approximately $1.75 billion, a staggering 47% decline. And now, with Canada's housing market struggling, Ottawa is exploring two potentially significant policy shifts: increasing immigration and reconsidering the foreign buyer ban. Prime Minister Mark Carney has indicated that Canada may eventually resume controlled population growth following substantial reductions to immigration targets. The federal government's upcoming three-year immigration plan could provide important clues about when that shift might occur. Immigration has historically played a critical role in Canada's economic expansion. With an aging population and weak natural population growth, newcomers contribute significantly to labour-force growth, health  care, technology, entrepreneurship and government tax revenues. But rapid population growth also places pressure on housing affordability, infrastructure and public services. Finding the right balance remains a central economic challenge. Meanwhile, Canada's foreign buyer ban, introduced in 2023 and extended through January 1, 2027, is approaching another decision point. Finance Minister François-Philippe Champagne has indicated that Ottawa is reviewing its options, raising questions about whether foreign purchasers could eventually return to Canada's residential housing market. Could restrictions be relaxed specifically for newly constructed homes? Would international buyers return in meaningful numbers? And could additional demand help developers struggling with completed but unsold inventory? The economic implications extend beyond property prices. Real estate transactions generate provincial property transfer taxes, while qualifying new-home purchases generate GST revenue. Construction activity also supports employment, business investment and broader government revenues. The housing downturn is particularly evident in Toronto, where benchmark prices have fallen approximately 28% from their peak, returning to levels last seen in September 2020. Vancouver's benchmark prices have also retreated to levels last experienced in 2021. Canada's rental market is experiencing similar weakness. National asking rents have declined 4.2% annually, marking 24 consecutive months of year-over-year decreases. Vancouver's average apartment and condo rent sits at $2,741, its lowest September level since 2021. Adding another layer of uncertainty is the Bank of Canada. Despite weak housing activity, financial markets are increasingly anticipating higher interest rates. At the time of recording, markets assigned approximately a 60% probability to an October rate hold and an 84% probability to a hike by December. Variable-rate mortgages remain attractive to borrowers, but the possibility of additional increases raises questions about how much interest-rate risk households are prepared to accept. Canada now faces a difficult balancing act: improving housing affordability while sustaining economic growth, government revenues and future construction. Could immigration policy and foreign buyer restrictions become part of the response to a prolonged housing downturn? And what would that mean for Canadian homebuyers, sellers, investors and developers? The answers could shape Canada's housing market well beyond 2026. _________________________________  Contact Us To Book Your Private Consultation: 📆 https://calendly.com/thevancouverlife Dan Wurtele, PREC, REIA 604.809.0834 [email protected] Ryan Dash PREC 778.898.0089  [email protected]  www.thevancouverlife.com

Vancouver has officially entered a buyer's market, a condition that has occurred in only about one out of every ten months over the past 21 years. And while buyers may have felt increasingly powerful for some time, September's numbers confirm just how dramatically the balance of power has shifted. Metro Vancouver recorded only 1,713 home sales in September 2026, an 8.4% annual decline and the fifth-slowest September in the available data dating back to 2005. Sales were 25% below the ten-year average, while active inventory remained elevated at 15,531 properties, approximately 24% above historical norms. The result? A sales-to-active-listings ratio of just 11%, crossing into buyer's-market territory. Detached homes are experiencing particularly weak demand, with a 9.5% sales ratio, while townhomes sit at 13% and apartments at 12%. Prices are responding. Vancouver's benchmark home price has fallen for four consecutive months, declining another 0.6% in September to $1,075,900. That's 5.5% below last year and back to levels last seen in April 2021. But the challenges facing housing extend well beyond resale activity. BC Premier David Eby has announced a proposed tax on completed condos remaining empty and unsold for more than a year. Beginning at 2%, the proposed levy would increase by one percentage point annually.  The government argues the measure would encourage developers to bring inventory into use and improve housing affordability. Developers, however, are raising concerns about the proposal's potential consequences. Industry representatives, including executives from Rennie and Wesgroup, argue that developers are already financially motivated to sell, while additional carrying costs could further complicate project financing and future construction decisions. The debate arrives during an extraordinary contraction in Vancouver's presale industry. September saw just one new presale launch containing 28 homes. In August, two projects released 76 units and recorded only two sales, an absorption rate of 3%. Meanwhile, purpose-built rental construction is moving in the opposite direction. Fourteen rental developments representing more than 2,100 homes were scheduled for completion between July and September, adding supply to a rental market already experiencing elevated vacancy and declining rents. The broader economy is providing mixed signals. Canadian GDP was essentially unchanged in July, although construction increased 1.3% and GDP per capita has recently shown improvement. New U.S. tariffs, however, threaten to interrupt that momentum. At the same time, Canadian bond yields are hovering around 3.6%, creating renewed upward pressure on fixed mortgage rates. At the time of recording, financial markets were pricing approximately a 90% probability of a Bank of Canada rate increase by December, although those expectations remain subject to change. Mortgage stress is also becoming increasingly visible. Canada's arrears rate returned to 0.29% in July, its highest level since 2016, while Ontario reached 0.34%, its highest since 2011. Closer to home, the Vancouver region foreclosure inventory has climbed to 633 properties, compared with 230 in October 2024. For buyers, this rare market environment presents greater selection, more negotiating leverage and opportunities that were considerably harder to find during previous market cycles. For sellers, pricing, presentation and reducing buyer uncertainty have become increasingly important. Yet today's weakness also raises a longer-term question: what happens to Vancouver's future housing supply if developers continue delaying projects because completed inventory isn't selling? Vancouver's buyer's market is no longer simply a matter of sentiment. The sales volumes, inventory levels, declining prices and construction pipeline are now telling the same story: the housing market is undergoing a significant adjustment, with consequences that could extend well beyond 2026. _________________________________  Contact Us To Book Your Private Consultation: 📆 https://calendly.com/thevancouverlife Dan Wurtele, PREC, REIA 604.809.0834 [email protected] Ryan Dash PREC 778.898.0089  [email protected]  www.thevancouverlife.com

Vancouver real estate is entering the final stretch of 2026 with a growing problem: buyers are losing confidence at exactly the moment borrowing costs are threatening to rise again. Consumer confidence fell 6.9 points in September, its steepest monthly decline since the trade war began in early 2025. Even more significant for housing, the Real Estate Outlook Index has fallen 8.4 points since late August, its sharpest three-week deterioration since July 2022, when the Bank of Canada delivered its historic 100-basis-point rate increase. That matters because housing doesn't run on affordability alone. It runs on confidence. Buyers who believe prices could fall, rates could rise or the economy could weaken have little incentive to rush into the market. The evidence is already visible. Metro Vancouver recorded just 15,294 home sales through August, the lowest January-to-August total in the available data going back to 2005 and less than half the activity recorded during the 2016 peak. September isn't providing much of a rebound either. Through September 22, just 1,301 homes had sold, 8% fewer than during the same period last year. And another headwind may be approaching. Following the Federal Reserve's latest rate increase, Canadian markets are increasingly pricing the possibility of Bank of Canada tightening. At the time of recording, markets implied a 54% probability of an October increase and 94% probability of at least one hike by December. Market expectations can change quickly, but the direction matters: after years of buyers waiting for borrowing costs to fall, the conversation has suddenly shifted back toward higher rates. The construction data reveals an equally important divide. Canada recorded an annualized 229,000 housing starts in August, essentially unchanged from July and actually 1.8% higher year-over-year. But beneath that headline, two completely different housing markets are emerging. Rental starts increased 24.8%. Condo starts fell 47.1%. Strip rental construction out entirely and housing starts intended primarily for ownership have fallen to their lowest level in more than 26 years.  Building permits are pointing in the same direction, with multifamily permits down sharply in both Ontario and British Columbia. Toronto provides the extreme example: just 156 condo units began construction during the first half of 2026, compared with an average of roughly 7,000 over the previous decade. This creates a remarkable housing paradox. Canada could simultaneously experience an abundance of new rental supply and a collapse in the pipeline of homes available for ownership. Record rental construction could continue putting downward pressure on rents over the next several years, while today's collapse in condo starts creates substantially fewer ownership completions later in the decade. Meanwhile, an entirely different real-estate story is developing in Alberta. Meta has begun construction on its first Canadian AI data centre in Sturgeon County, north of Edmonton. The 1,750-acre site was purchased for $300 million, with Meta planning more than $13 billion of investment and approximately 3,000 construction jobs. For a county with a population of roughly 21,000, investment of that magnitude has the potential to generate substantial secondary economic and real-estate effects. Taken together, these numbers show a Canadian housing market moving in dramatically different directions. Vancouver buyers are retreating, ownership construction is collapsing, rental construction is booming, and enormous amounts of technology capital are beginning to reshape other Canadian markets. For Vancouver sellers, that makes confidence increasingly valuable. In one of the slowest markets in decades, buyers have choices. Clean documentation, strong maintenance records, permitted renovations, straightforward ownership and a well-presented property aren't simply nice additions anymore. When buyers have dozens of reasons to wait, the properties that sell will increasingly be the ones that give them the fewest reasons to worry. _________________________________  Contact Us To Book Your Private Consultation: 📆 https://calendly.com/thevancouverlife Dan Wurtele, PREC, REIA 604.809.0834 [email protected] Ryan Dash PREC 778.898.0089  [email protected]  www.thevancouverlife.com

Canada’s housing market is heading into the final months of 2026 with a problem few expected earlier this year: just as affordability was finally improving, borrowing costs are threatening to move higher again. The U.S. Federal Reserve has raised interest rates for the first time since 2023, lifting its benchmark rate by 25 basis points. More importantly for Canadians, U.S. bond yields have surged, with the 10-year Treasury reaching 5%. Canadian fixed mortgage rates don't operate in isolation, and continued pressure on global bond markets could keep Canada's five-year yield elevated even if the Bank of Canada initially stays on the sidelines. But markets aren't expecting the Bank to remain there forever. At the time of recording, market pricing implied a 59% chance of a Bank of Canada hike in October and an 85% chance by December, with the equivalent of five increases being priced by July 2027. Those expectations can change quickly, but if even a portion materializes, the implications for housing could be significant. After three years of improving affordability, higher rates could reverse some of that progress and further weaken buyer demand heading into 2027. And demand is already exceptionally soft. National home sales fell another 0.7% in August and were down 6.9% year-over-year. Year-to-date activity is running at its weakest level since 2003. Vancouver is experiencing an even deeper slowdown, with sales volumes near multi-decade lows and benchmark prices down almost 6% from last year. September isn't providing much evidence of the traditional fall-market rebound either. Through the first 15 days, Greater Vancouver recorded 868 sales, slightly below the already weak 892 recorded during the same period in 2025. The decline is only 3%, but the bigger story is the absolute level of activity: buyers remain remarkably hesitant. That hesitation is showing up elsewhere. More than 5,000 completed but unsold condos are now sitting across Metro Vancouver, representing approximately $4.45 billion of inventory. Burnaby alone accounts for 1,332 units. Surprisingly, larger homes make up a disproportionate share of that inventory, challenging the idea that simply building larger units guarantees stronger end-user demand. Development stress is spreading beyond residential projects as well. Frameworks, a proposed office and light-industrial development at 1725 Clark Drive, has entered receivership. The site was purchased for $30.5 million in 2019 but is now assessed at just $16.7 million, illustrating how dramatically land values, financing costs and development economics have shifted. Perhaps the most important leading indicator, however, is confidence. The real-estate outlook component of consumer sentiment recently experienced its sharpest two-week decline since January 2025. Housing markets run on affordability, employment and credit, but they also run on confidence. When buyers believe waiting could produce a better opportunity, transactions can remain depressed even when households have the financial capacity to purchase. And Canadians certainly have assets. Household net worth has surpassed a record $19 trillion, rising 2.9% in the second quarter. Canadian households now hold approximately $6.80 in assets for every dollar of debt, up substantially from 2010. That creates the central question heading into 2027: is Canada's enormous household wealth creating pent-up housing demand waiting to be released, or will higher rates and declining confidence keep that money on the sidelines? Right now, Vancouver's unusually quiet fall market suggests buyers are still choosing patience. If borrowing costs rise into 2027, that patience could last considerably longer. _________________________________  Contact Us To Book Your Private Consultation: 📆 https://calendly.com/thevancouverlife Dan Wurtele, PREC, REIA 604.809.0834 [email protected] Ryan Dash PREC 778.898.0089  [email protected]  www.thevancouverlife.com

Canada’s housing market is becoming more affordable, but just as buyers are getting some relief, a new set of risks is emerging. The latest RBC affordability data shows condo affordability nationally has improved all the way back to late-2019 levels, reversing much of the deterioration that followed the pandemic. Toronto and Victoria are now even more affordable than they were in 2019, while Vancouver is only a few percentage points away. Renters are also gaining ground. Average Canadian rents have fallen 4.8% year-over-year to $2,035, marking the 23rd consecutive month of annual declines. Vancouver rents are down 2.4% to $2,729, while record levels of purpose-built rental construction continue adding competition for tenants. But affordability is only one side of the equation. Canada unexpectedly lost 41,700 jobs in August, compared with expectations for a 15,000 gain. Unemployment remained at 6.4%, but wage growth slowed to just 2%, its weakest pace since 2017. The question now is whether this was simply one weak month or the beginning of tariffs and slowing growth showing up in employment. Meanwhile, mortgage borrowers face a very different problem. Canada’s five-year government bond yield reached 3.63%, a 27-month high, as bond yields surge globally amid inflation concerns, enormous government borrowing and geopolitical instability. Because five-year Canadian bond yields heavily influence fixed mortgage pricing, mortgage rates can rise even while the Bank of Canada keeps its overnight rate unchanged. Markets are also increasingly contemplating Bank of Canada rate hikes. At the time of recording, market pricing implied a 42% probability of an October hike and 78% by December, with additional increases being priced into 2027. Those probabilities can change rapidly, but the dramatic shift illustrates how quickly the interest-rate narrative has reversed. Development is providing equally dramatic examples of the market reset. CURV, the proposed 60-storey luxury Vancouver tower once marketed as the world’s tallest Passive House and famous for offering a Porsche promotion, entered receivership after selling only 41 units. Presale contracts have now been terminated, and the 1075 Nelson Street development site is back on the market. The land had reportedly been appraised between $169 million and $183 million in 2024, illustrating just how dramatically development economics have changed. And even completed projects aren't immune to problems. Owners at Coquitlam’s 567 Clarke + Como have filed a lawsuit alleging defects involving waterproofing, windows, HVAC, concrete, balconies and elevators. None of the allegations have been proven in court, and the developer disputes the claim, but the case provides an important reminder for condo buyers: new does not automatically mean risk-free. Finally, Vancouver's fall market is beginning under a cloud of uncertainty. Only 447 homes sold during the first nine days of September, compared with 539 during the same period last year, a roughly 20% decline. It's far too early to call the month, but the initial numbers point toward an unusually slow start. The contradiction is becoming impossible to ignore: housing and rents are becoming more affordable, but employment is weakening and borrowing costs threaten to rise again. For Vancouver real estate, the next phase may be determined by which of those forces wins. _________________________________  Contact Us To Book Your Private Consultation: 📆 https://calendly.com/thevancouverlife Dan Wurtele, PREC, REIA 604.809.0834 [email protected] Ryan Dash PREC 778.898.0089  [email protected]  www.thevancouverlife.com

Vancouver real estate has entered territory not seen in years. Home prices have fallen back to April 2021 levels, August recorded the third-lowest sales volume in more than two decades, and the presale market has virtually stopped launching new product. Metro Vancouver recorded just 1,870 sales in August, down 10% from July and 3% year-over-year. Sales were 21% below the 10-year average, with seven of the first eight months of 2026 producing fewer transactions than the already weak 2025 market. Prices are following. The benchmark HPI fell another 0.6% to $1,081,900, marking the third consecutive monthly decline and a 5.9% drop from last year. Vancouver's benchmark is now at a 5½-year low and approximately 16% below its April 2022 peak. But underneath those bearish numbers, an important shift is emerging. New listings fell for the fourth consecutive month to 4,087, now below the 10-year average for the first time in roughly three years. Total inventory dropped another 9% month-over-month to 15,033 and is now 11% lower than last year. Inventory remains elevated, but its direction is changing. If listings continue contracting while existing supply is absorbed, one of the major forces pushing prices lower could begin to weaken. The presale market, meanwhile, remains on life support. July produced only three new project launches containing 42 homes. August appears to have brought just one project and 10 homes to market. That's roughly a 97% collapse from launch levels seen only a few years ago. High-rise launches remain largely economically unfeasible, while buyers overwhelmingly favour completed homes they can see, inspect and compare before committing. There may, however, be an early signal from Toronto. New-home sales jumped 184% year-over-year in July, helped significantly by the HST rebate. Single-family sales surged 246%. Context matters, the market remains extraordinarily weak historically, but it was the first meaningful year-over-year improvement following years of deterioration. Canada's broader economy is sending equally mixed signals. GDP expanded at an annualized 3.3% in the second quarter, allowing Canada to avoid a technical recession. Yet escalating U.S. trade tensions threaten that momentum, while elevated energy prices are keeping inflation risks alive. That leaves the Bank of Canada caught between competing pressures. The Bank held its overnight rate at 2.25% for the seventh consecutive meeting, extending a period of remarkable rate stability. Rate cuts are increasingly disappearing from the conversation; attention is shifting toward how long rates remain unchanged and whether the next move could eventually be higher. Canadian households are still carrying substantial financial pressure. Household debt has climbed 4.6% to $2.64 trillion, while non-mortgage debt is growing considerably faster than mortgage balances. Yet mortgage arrears actually improved nationally, falling to 0.28%. British Columbia remains below the national average at 0.26%, while Ontario has deteriorated to 0.33%, its highest level since 2011. Foreclosures tell another story. There are now 628 foreclosure listings, up from just 230 in October 2024. The September market update therefore presents a contradiction: sales are near historic lows, prices are at 2021 levels and presales have virtually disappeared, but inventory is contracting. The downturn isn't over. But for the first time in some time, the data is beginning to reveal what could eventually become the foundation for stabilization, and potentially the next phase of Vancouver's housing cycle. _________________________________  Contact Us To Book Your Private Consultation: 📆 https://calendly.com/thevancouverlife Dan Wurtele, PREC, REIA 604.809.0834 [email protected] Ryan Dash PREC 778.898.0089  [email protected]  www.thevancouverlife.com

Vancouver’s real estate downturn is not just a story about falling prices. Record-low transaction volumes are beginning to reshape the entire housing industry, from developers and presale marketers to mortgage borrowers and the future supply of homes. Nowhere is the shift more dramatic than Metro Vancouver’s once-dominant presale market. At the peak in 2021, more than 19,000 new condos sold. By 2025, sales had fallen below 3,000, and 2026 year-to-date sales are now under 500. The collapse in new launches is even more striking. In July 2021, 1,426 presale units were released. July 2026 produced just 42, a staggering 97% decline. The consequences are spreading throughout the development industry. Projects have entered insolvency, developers have disappeared, buyers have faced lawsuits after attempting to walk away from contracts, and Vancouver’s presale marketing industry is being forced to reinvent itself. MLA Canada has dramatically reduced staffing, Magnum Projects has cut approximately 40% of its workforce, Rennie has reduced staff while expanding its commercial real estate focus, and other firms have exited the business entirely. The completed inventory problem is equally significant. Metro Vancouver is estimated to have approximately $4.6 billion worth of completed, unsold new homes. Yet only 495 condos one year old or newer have sold year-to-date, representing approximately $400 million in transactions. At the current pace of roughly $44 million per month, that theoretically represents more than 100 months, early 9 years, of completed inventory. For buyers, that creates something largely absent during the previous cycle: leverage. But another important shift is developing beneath the surface. New listings are falling nationally, with British Columbia down approximately 13% year-over-year and Ontario down nearly 11%. Active inventory in both provinces has also declined roughly 5% from last year’s levels. Supply remains elevated, but direction matters. Historically, declining inventory has been one of the conditions required for prices to eventually stabilize. That trend is being reinforced by a dramatic slowdown in construction. New homeowner completions have fallen to levels last seen around 2002, while housing starts excluding rentals have dropped toward 1990 levels. Today’s weak development economics could therefore translate into significantly less housing supply several years from now. The mortgage market is undergoing its own transformation. The Bank of Canada’s overnight rate has remained stable throughout 2026, and borrowers are increasingly choosing variable-rate mortgages. Variable mortgages now represent a record 36% of the market, while fixed mortgages have fallen to just 20%. Renewing homeowners, however, are still absorbing substantial financial pressure. Canadians coming off five-year terms are experiencing an average 24% increase in monthly mortgage payments. HELOC balances have increased 14% year-over-year, while personal deposits into savings accounts have turned negative for the first time since 2013. The rental market presents another long-term contradiction. Ontario is projected to face a 121,000-unit rental shortfall by 2036 despite record purpose-built rental construction. Condo investors supplied 58% of Ontario’s new rental housing over the previous decade, but their contribution is projected to collapse to just 9% over the next ten years. The common thread is lag. Weak sales today mean fewer launches. Fewer launches mean fewer completions. Developers pulling back today can create shortages years from now. For buyers, this may be one of the strongest negotiating environments in years. For sellers, waiting for 2021 conditions to return carries an increasingly measurable cost. Vancouver real estate continues to establish new lows, but beneath those numbers, the foundations of the next market cycle may already be forming. _________________________________  Contact Us To Book Your Private Consultation: 📆 https://calendly.com/thevancouverlife Dan Wurtele, PREC, REIA 604.809.0834 [email protected] Ryan Dash PREC 778.898.0089  [email protected]  www.thevancouverlife.com

Canada’s four-year housing slowdown is beginning to produce a consequence that could reshape the market for years to come: the country is building fewer homes at precisely the time long-term supply remains one of its biggest challenges. New housing starts fell 5% month-over-month and a striking 22% from a year ago. British Columbia’s numbers are even more dramatic, with starts down 14% in a single month and 47% year-over-year. Strip out rental construction and housing starts intended primarily for end users are now sitting at a 26-year low. Single-family completions have fallen to levels not seen in 35 years. Real estate operates with a significant lag. Projects abandoned today represent homes that will not reach the market several years from now. Early signs of that tightening are already emerging: new listings are rolling over and active inventory is down roughly 5% year-over-year in both Vancouver and the GTA. The rental sector, which became a lifeline for developments that no longer worked as for-sale projects, is beginning to face its own economic reality. A proposed 20-storey Kelowna tower containing 176 below-market rental homes has been cancelled after BC Housing determined the project no longer represented an effective use of public funds. Falling rents played into an increasingly difficult financial equation. With a record pipeline of purpose-built rentals still under construction and rental rates declining, projects once considered the safer alternative are becoming harder to justify. National resale data, however, is beginning to show tentative signs of improvement. Canadian home sales increased for a fourth consecutive month in July, although activity remained 5.3% below last year. New listings declined for a third consecutive month, months of inventory fell to 4.7, and the national Home Price Index edged 0.1% higher—the first monthly increase since November 2024. It is hardly a housing recovery, but the market is slowly tightening. Inflation adds another layer. Canada’s headline rate increased to 3% in July, driven heavily by a 25.7% surge in gasoline prices. Yet core inflation remained around 2%, while shelter inflation slowed to just 1.3%. That could give the Bank of Canada room to remain patient, with markets overwhelmingly expecting rates to remain unchanged at the September meeting. Financial stress nevertheless continues to build. Consumer insolvencies approached 13,000 in June, up 11.8% year-over-year and representing the second-highest June on record. On a rolling 12-month basis, Canada has reached approximately 146,000 filings—the highest level since the Global Financial Crisis. Bankruptcies increased 14%, while the dollar value associated with them jumped more than 40%. Another major real estate story is unfolding far from Canada’s largest cities. Billionaire investor Mark Walter, recently connected to the record-setting sale of the Los Angeles Lakers, is also linked through a company to significant agricultural land purchases around Dunster, B.C. Reporting suggests approximately 3,500 acres may have been accumulated since 2008. With less than 5% of British Columbia considered farmable, the purchases are reigniting debate around foreign ownership of agricultural land, transparency, food security and whether farmland is increasingly becoming a financial asset rather than primarily a productive resource. For Vancouver real estate, the immediate picture remains challenging. Sales continue to grind below already weak 2025 levels, while prices show little momentum. But the longer-term story may be developing somewhere else entirely. Canada spent years arguing that it needed dramatically more housing. Now sales are weak, developers are pulling back, rental economics are deteriorating and new construction is falling sharply. Housing demand can change relatively quickly. New supply cannot. The homes Canada decides not to build today could become one of the most important forces determining prices, rents and affordability several years from now. _________________________________  Contact Us To Book Your Private Consultation: 📆 https://calendly.com/thevancouverlife Dan Wurtele, PREC, REIA 604.809.0834 [email protected] Ryan Dash PREC 778.898.0089  [email protected]  www.thevancouverlife.com

Canada’s housing market is entering one of its most unusual periods in years. On a national level, affordability has returned to roughly 2021 levels, yet Vancouver home sales remain more than 50% below where they were at the same point that year. The difference may have less to do with affordability and far more to do with confidence. In 2021, rapidly rising prices gave buyers confidence that purchasing a home was relatively safe because waiting could mean paying significantly more. Today, that psychology has reversed. Buyers may be able to afford the monthly payment, but with prices under pressure, many are reluctant to make a major purchase that could be worth less several months later. Much like the stock market, consumers often become more comfortable buying when prices are rising rather than falling. That hesitation is showing up across the housing ecosystem. Canada’s rental market has now recorded 22 consecutive months of annual declines, with average asking rents falling 4% year-over-year to $2,037 in July. British Columbia rents are down 4.5% annually, while Vancouver has experienced a remarkable 19.8% decline over the past three years. Average Vancouver rent now sits at $2,677. For investors, falling rents combined with elevated ownership costs create a difficult equation. Add a record pipeline of purpose-built rental construction, and the pressure could continue — particularly for presale and newly completed condos competing for investor demand. That leads directly to Metro Vancouver’s growing inventory problem. Roughly 4,000 completed new homes remain unsold across the region, led by Burnaby with 1,208 units, Vancouver with 1,017 and Coquitlam with 620. The situation has become significant enough that the federal and B.C. governments are developing a “Condo Conversion Partnership” that could acquire approximately 2,200 units across the province and convert them into rental housing. Exactly which developments qualify, and which developers governments ultimately purchase from, remains one of the biggest unanswered questions. There are, however, signs that the broader Canadian economy is improving. Canada added more than 75,000 jobs in July, pushing unemployment down to 6.4%, its lowest level in two years. More than 180,000 jobs have been added since April, with recent growth increasingly coming from the private sector. That strength also complicates the interest-rate outlook. Markets currently see an 87% probability that the Bank of Canada holds rates at its September 2 meeting, while expectations later in the year have shifted toward the possibility of a rate increase. Meanwhile, Vancouver’s August market is starting quietly. Just 717 homes sold during the first 12 days of the month, down 4% from last year. Average prices remain relatively stable, while the median price is down approximately 2%. The result is a market filled with contradictions: affordability has improved, employment is strengthening and prices are showing some stability, yet sales remain subdued, rents have fallen sharply and thousands of completed homes remain unsold. For buyers, sellers and investors, understanding those contradictions is becoming more important than trying to predict the next headline. The opportunity in Vancouver real estate increasingly comes down to positioning — knowing where negotiating power exists today, while recognizing which segments still face significant supply and confidence challenges. _________________________________  Contact Us To Book Your Private Consultation: 📆 https://calendly.com/thevancouverlife Dan Wurtele, PREC, REIA 604.809.0834 [email protected] Ryan Dash PREC 778.898.0089  [email protected]  www.thevancouverlife.com

Canada's housing market is entering a new phase, and the latest developments suggest the next chapter may be defined less by rapid appreciation and more by financial pressure, policy decisions, and changing buyer psychology. Metro Vancouver recorded one of its weakest Julys in more than two decades, with just 2,052 residential sales completed, making it the second-slowest July since 2001. At the same time, home prices continued to soften, inventory remained historically elevated despite recent declines, and buyers maintained a cautious approach even as borrowing costs stabilized. The data points to a market still searching for direction rather than one preparing for a broad recovery. The economic backdrop, however, tells a different story. Canada's economy expanded more strongly than expected during the second quarter, consumer confidence has improved, and retail spending continues to show resilience. While these developments would typically support housing demand, stronger economic growth also reduces pressure on the Bank of Canada to deliver additional interest rate cuts, creating a more complicated outlook for prospective buyers and sellers. Meanwhile, financial stress is becoming increasingly visible throughout the real estate industry. A growing number of Metro Vancouver developers are pursuing legal action against presale purchasers who are failing to complete transactions signed during the market peak. In many cases, buyers are losing their deposits while also facing lawsuits seeking compensation for the difference between the original contract price and today's lower market value. At the same time, major development projects are beginning to experience financial distress, raising broader questions about the future pipeline of housing supply across the region. Housing policy also remains firmly in the spotlight. Vancouver City Council recently rejected the proposed Villages Plan, a sweeping initiative intended to introduce more missing-middle housing throughout established neighbourhoods. Yet only days later, council approved the long-delayed Holborn redevelopment, one of the city's largest mixed-use housing projects. Together, the decisions illustrate both the political challenges of increasing housing density and the lengthy timelines required to deliver meaningful new supply. Nationally, the Canadian Real Estate Association has once again reduced its forecasts for home sales and price growth, reflecting a slower-than-expected recovery across much of the country. Markets such as Toronto continue to grapple with rising condominium inventory, weakening investor demand and development pressures, while Vancouver increasingly faces many of the same structural challenges. Taken together, the latest data presents a housing market undergoing a significant transition. Stronger economic fundamentals are colliding with affordability constraints, cautious consumers, elevated inventory and a development industry operating under increasing financial pressure. For buyers, sellers, investors and homeowners alike, understanding these competing forces has never been more important. _________________________________  Contact Us To Book Your Private Consultation: 📆 https://calendly.com/thevancouverlife Dan Wurtele, PREC, REIA 604.809.0834 [email protected] Ryan Dash PREC 778.898.0089  [email protected]  www.thevancouverlife.com

Toronto has become the epicentre of Canada’s real estate downturn, offering a potentially important preview of what could be coming next for Vancouver. After years of rapid appreciation, aggressive investor activity and unprecedented condominium construction, the GTA is now navigating falling prices, elevated inventory, development failures and a dramatic shift in buyer psychology. Toronto Realtor Tom Storey returns for a boots-on-the-ground assessment of one of Canada’s most closely watched housing markets. More than a year after his previous appearance, conditions have evolved significantly—particularly across the condominium and pre-sale sectors, where developers, investors and buyers are confronting an entirely different economic reality. The condo market remains at the centre of the correction. Completed but unsold inventory, buyers struggling or refusing to close on pre-sale purchases, developer insolvencies and difficult project economics have fundamentally changed a segment that once attracted enormous investor demand. The question now is whether Toronto has worked through the worst of the adjustment or whether additional financial pressure remains ahead. Detached and semi-detached homes tell another important part of the story. With Vancouver beginning to see inventory conditions tighten year over year, Toronto provides a valuable comparison for understanding whether reduced supply could eventually establish a floor beneath prices. Buyer sentiment remains critical, however, as prospective purchasers continue weighing improved negotiating power against uncertainty over where property values ultimately settle. Financial stress is also becoming increasingly difficult to ignore. Ontario has experienced rising consumer insolvencies and bankruptcies as households contend with elevated mortgage payments and higher living costs. The impact is beginning to intersect directly with real estate, particularly for owners facing refinancing decisions or those who no longer have the financial flexibility provided by rapidly appreciating property values. Toronto’s rental market provides another window into changing fundamentals. Rental rates, vacancies and landlord incentives are adjusting as new supply meets weaker population growth and affordability constraints, creating new challenges for investors whose purchase decisions were originally based on considerably stronger rental assumptions. Government intervention has now become another major part of the housing conversation. Toronto and Vancouver have both witnessed policies designed to support struggling new-construction markets, generating debate over whether these measures primarily protect housing supply or effectively provide relief to developers and their lenders. Combined with tax incentives such as HST relief on qualifying new homes, the critical test is whether government stimulus is actually translating into renewed buyer demand. The investment equation has consequently changed. Where should $1 million be deployed in Toronto real estate today? Condominiums offer significantly lower entry points than during the peak, while scarce ground-oriented housing may provide stronger long-term fundamentals. Alternatively, continued uncertainty could make patience the more attractive strategy. Perhaps the biggest opportunity lies precisely where sentiment has become most negative. Certain GTA neighbourhoods and property categories may already have experienced substantial corrections, potentially creating opportunities for buyers capable of looking beyond today's headlines and holding through the next market cycle. Toronto's experience carries important implications far beyond Ontario. Vancouver shares many of the same characteristics: expensive housing, significant condominium development, investor participation, affordability constraints and a development industry facing enormous financial pressure. If Toronto is further ahead in the housing correction, its next moves could provide some of the clearest signals yet about where Vancouver real estate is heading next. https://storeyteam.ca/ _________________________________  Contact Us To Book Your Private Consultation: 📆 https://calendly.com/thevancouverlife Dan Wurtele, PREC, REIA 604.809.0834 [email protected] Ryan Dash PREC 778.898.0089  [email protected]  www.thevancouverlife.com

Canada's housing market is entering another pivotal phase as slowing construction, rising financial stress, and government intervention increasingly shape the future of real estate. While the Bank of Canada has provided borrowers with welcome stability by holding interest rates steady for a sixth consecutive meeting, mounting evidence suggests the country's housing shortage could worsen before it improves. Housing starts are falling sharply, residential building permits continue to decline, and developers across Canada are struggling to secure financing, even for fully approved projects. Two years after British Columbia introduced mandatory municipal housing targets, the results are mixed. Several municipalities have exceeded their provincial obligations, while others remain significantly behind schedule. West Vancouver has completed just 37% of its required housing, raising the possibility that the Province could eventually exercise its authority to override local zoning decisions and approve developments directly. Such intervention would represent one of the most significant shifts in municipal planning authority in decades. Canada's lending environment is showing signs of greater stability, with the Bank of Canada maintaining its policy rate at 2.25%. Economic growth has begun to recover following a sluggish period, giving buyers and sellers more confidence around borrowing costs. However, inflation remains elevated, fuelled largely by food and energy prices, leaving policymakers cautious. Most economists expect rates to remain unchanged for the remainder of the year, although the possibility of another increase has not been ruled out should inflation accelerate again. Financial pressures within the development industry continue to intensify. Another major condominium project, this time a 310-unit waterfront development in Burlington, Ontario, has entered receivership after the developer failed to secure construction financing. The project had approvals, a desirable location, and planned housing supply, yet financing challenges ultimately brought construction to a halt. Similar stories are becoming increasingly common as higher interest rates, cautious lenders, and elevated construction costs reshape Canada's development landscape. Vancouver is simultaneously introducing sweeping changes to how new development will be funded. The City's proposed Amenity Cost Charge program replaces years of negotiated community contributions with standardized fees designed to create greater transparency and predictability. Officials estimate the program will generate hundreds of millions of dollars for future community amenities, although questions remain about whether additional development costs will further challenge an industry already grappling with shrinking margins and rising insolvencies. Technology is also beginning to transform housing approvals. Burnaby has become one of the first municipalities in Canada to deploy artificial intelligence to review residential building plans before permit submission. By automatically checking projects against zoning regulations, the City hopes to significantly reduce approval timelines and accelerate housing construction without replacing human plan reviewers. If successful, the initiative could become a model adopted across Metro Vancouver. Mortgage renewals are entering their most financially challenging period as homeowners who secured historically low rates during 2021 and 2022 begin refinancing at substantially higher borrowing costs. Monthly mortgage payments are increasing by roughly 24% for many households, contributing to rising consumer insolvencies and the highest level of homeowner bankruptcies seen in a decade. At the same time, Canada's total liabilities associated with insolvency filings have more than doubled over the past ten years, highlighting growing financial strain among households. Meanwhile, the pipeline of future housing continues to weaken. Residential building permits and housing starts have both posted significant year-over-year declines, reflecting reduced developer confidence and fewer new projects entering construction. Detached home construction in British Columbia has fallen to a fraction of historical levels, while asking rents continue to decline as record numbers of purpose-built rental units enter the market amid slowing population growth. Together, these trends illustrate a housing market undergoing significant structural change, with affordability gradually improving for some buyers even as long-term supply concerns continue to mount. Metro Vancouver's market remains subdued, with sales activity tracking below last year's already historically weak levels and home prices continuing to soften. Despite improving economic stability, the combination of constrained affordability, cautious buyers, and slowing development suggests Canada's housing market remains in a period of transition—one that will likely shape real estate conditions for years to come. _________________________________  Contact Us To Book Your Private Consultation: 📆 https://calendly.com/thevancouverlife Dan Wurtele, PREC, REIA 604.809.0834 [email protected] Ryan Dash PREC 778.898.0089  [email protected]  www.thevancouverlife.com

Canada’s real estate market is entering one of the most consequential periods in a generation. Home prices have suffered their steepest correction on record, political scrutiny is intensifying around government intervention in the condo market, insolvencies remain near historic highs, and a major new land agreement could reshape decision-making across an area larger than Portugal. Start with housing prices. After experiencing the fastest appreciation in Canadian history, national home values have now recorded the sharpest decline ever measured. Prices fell 0.8% in the first quarter and 4.8% year-over-year. Since peaking in early 2022, nominal prices have dropped 20.1%, more than double the declines experienced during the late-1980s and early-1990s correction or the 2008 financial crisis. Adjust for inflation and the picture becomes even more dramatic. Real home prices are down 29.3% from the 2022 peak, effectively returning Canadian housing values to 2016 levels. That raises a critical issue for the roughly two-thirds of Canadians who own property: what catalyst could reverse the decline? Interest rates appear near the bottom of the current cycle, population growth is weakening, unemployment remains elevated and housing construction is still substantial. Without a meaningful shift in economic conditions, the road back may be difficult. Government intervention is already accelerating. British Columbia’s controversial condo conversion program—widely labelled the “condo bailout”—remains under intense scrutiny. Conservative MPs sought a parliamentary ethics investigation into the proposed $1.45-billion initiative, calling for testimony from prominent industry figures, federal Housing Minister Gregor Robertson and developers connected to a 2026 fundraiser for Prime Minister Mark Carney. Questions intensified around the timing of meetings, fundraising activity, rising unsold condo inventory and business relationships involving major institutional players. A motion sought disclosure of which developers, projects and units could ultimately benefit from government purchases. One day later, Liberal MPs voted 5–4 against proceeding with the proposed committee investigation. For now, those questions remain unanswered. The debate arrives as new Statistics Canada research challenges another common narrative: that institutional investors dominate Canada’s rental market. Using the Herfindahl-Hirschman Index—a widely recognized measure of market concentration, the study found all 12 metropolitan regions examined remained well below levels typically associated with excessive concentration. Individual “mom-and-pop” investors accounted for roughly 40% of rental supply, institutional investors just under 25%, and other multi-property investors approximately 35%. Despite legitimate limitations in the methodology, the findings suggest Canada’s rental ownership landscape remains highly competitive by international standards, an important insight for smaller investors considering entering or expanding within the market. Financial stress, however, continues to build. Canada recorded 12,536 consumer and business insolvencies in May, making it the fourth-highest May on record. The number of active private-sector businesses has also declined year-over-year, while public-sector employment has expanded significantly faster than private-sector job creation since 2023. The result is an increasingly difficult environment for entrepreneurship, investment and economic growth. Finally, a major governance story is emerging in northern British Columbia. The province is reportedly negotiating a foundation agreement involving the Tahltan Nation and approximately 96,000 square kilometres, roughly 11% of B.C.’s landmass and an area larger than Portugal. The territory includes much of the mineral-rich Golden Triangle, home to major deposits of gold, copper, silver and other critical resources. At the centre of the debate is consent-based decision-making under B.C.’s Declaration on the Rights of Indigenous Peoples Act. Supporters see a long-overdue shift toward meaningful reconciliation and Indigenous participation in decisions affecting traditional territories. Critics are raising questions about transparency, legislative oversight, resource development and the broader implications of transferring decision-making authority across such a vast and economically significant region. Taken together, these stories reveal a Canadian real estate landscape being reshaped on multiple fronts. Housing values have undergone a historic correction. Governments are intervening directly in distressed condo markets. Investor ownership is more competitive than many assume. Financial pressures remain elevated. And the rules governing land, resources and development may be entering a new era. The market is not simply correcting. The economic, political and legal foundations beneath Canadian real estate are changing, and the consequences could define the next decade. _________________________________  Contact Us To Book Your Private Consultation: 📆 https://calendly.com/thevancouverlife Dan Wurtele, PREC, REIA 604.809.0834 [email protected] Ryan Dash PREC 778.898.0089  [email protected]  www.thevancouverlife.com