I recently spoke with CityNews Vancouver about the state of Metro Vancouver’s presale condo market. The numbers are stark: presale sales in the region are down 50 percent or more compared to a few years ago. It’s a dramatic falloff, and it’s showing up in longer sales cycles, stalled projects, and outright cancellations.
Project cancellations? They’re happening all the time right now.
Here’s what’s driving the slowdown, what it means for buyers, and where I see opportunities in this market.
Why the Presale Market Has Stalled
The presale condo market is struggling largely because of economic uncertainty and a lack of buyer confidence. Investors and first-time buyers are hesitant to commit to projects that won’t be completed for several years. People who are looking to make major purchases want certainty; they don’t want uncertainty.
Developers are facing pressure from multiple directions: higher construction costs, increased regulation, and softer resale prices that make presales a tougher sell. Add in the uncertainty around U.S. tariffs and trade negotiations, and you have a market where both buyers and builders are waiting on the sidelines.
I place much of the blame on policy decisions at both the provincial and federal levels. Housing and real estate is how young people get ahead in life, establish themselves, and start families. The current regulatory and taxation approach is stopping people from doing that. If government focused on the simple things—building wealth, keeping costs low—life would be better for everybody.
What Happens When Projects Get Cancelled
When a presale project is cancelled, buyers are generally protected under BC’s Real Estate Development Marketing Act (REDMA). Deposits are held in trust and returned if the project doesn’t proceed. That’s the good news.
The bad news is the lost time. A buyer who committed to a presale three years ago, expecting to move in this year, now has to start over. That’s money they could have invested years ago. It’s very unfortunate for people who planned their lives around a completion date that never came.
For buyers considering presales today, understanding your protections is essential. The 7-day rescission period gives you time to review contracts and back out if needed. The BC new home warranty provides coverage for defects after completion. These protections exist because presales carry inherent risk—use them.
The Supply Problem Ahead
Here’s what concerns me most about the current slowdown: we have very little new housing creation occurring right now. Projects are being cancelled or delayed. Developers are sitting on land rather than building. Some are converting planned condos to purpose-built rentals because the economics no longer work for strata sales.
Metro Vancouver’s population isn’t shrinking. When demand returns—and it will—there’s going to be less new housing coming to market. What the governments are doing, particularly the provincial government, is sowing the seeds of a future surge in real estate prices, which will be very good for those wise and brave enough to buy into a challenging market.
This creates a timing consideration for buyers. The current inventory may represent the last window to purchase presale condos before the supply-demand balance shifts again.
Where Buyers Can Find Opportunity
A soft market creates opportunity for buyers who do their homework. Developers who need to move units are offering the most aggressive incentive environment since 2018: reduced deposits, free parking, assignment flexibility, cash credits worth tens of thousands of dollars. Some are even throwing in cars and vacations to generate buzz.
More importantly, buyers have time. The frantic bidding wars of 2021 are gone. You can take time to evaluate options, include subjects, negotiate, and make informed decisions. Developers are motivated. Use that leverage.
Interest rates have declined nearly a full percentage point over the past year. The 5-year variable sits around 3.54 percent as of mid-January 2026. Combined with softer prices and motivated sellers, the math works better than it has in years for qualified buyers.
The Bottom Line
The presale market is down—significantly. That’s bad news for developers and for the region’s housing supply in the years ahead. But for buyers with the means and the patience to navigate this market, it’s the best environment we’ve seen since before the pandemic.
The balance of power has shifted to buyers, at least for now. If you’re considering a presale purchase, browse current presale listings across Metro Vancouver or contact our team for a project-by-project review of where the real value lies.