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Burnaby Real Estate Market Supply 2012

May 20, 2012

Filed under: Burnaby,Real Estate Market — Richard Morrison @ 3:24 pm
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Burnaby Real estate market took off in February, 2011 and held strong into the summer of that year. However, 2012 has seen much slower market than it was the same time last year. The following statistics on Burnaby Real Estate market demand (sales), supply (inventory), and the effect on mean prices from February 2010 through to February 2012 may help shed more light on the trends in the market.

 

Real Estate Market Supply, February, 2012

The current inventory in Burnaby real estate is the largest has been since 1996. In February 2011, the inventory increased from 1,154 the previous year (2010) to 1,176 (+1.9 percent). This upward trend continued over the last two years hitting a record high of 1,352 houses (+15 percent). February is usually the month when inventory starts to boost but typically the levels remarkably rise in April when the Spring Market fully running. Having had a high inventory level this February probably mean that the inventory level will stay high through to summer as the inventory level will not be absorbed before those sellers planning to list their property this spring enter the market.

 

Burnaby’s Real Estate Market Demand, 2012

There were thirty fewer units sold in Burnaby in February, 2012 (304 units) when compared to the same time last (334 units sold). Thirty fewer sales in just a month is a significant number. When coupled with the fact that the supply has increased appreciably during the same period, sellers should expect less competition for their property which translate into longer time in the market and possibly lower rates.
Interestingly though, the total sales from March 2011 to February 2012 (12 month sales volume) in the Burnaby home Market still recorded 205 units more than was over the same period the year before. Going back to 2010, the sales volume was significantly low (383 units) yet the prices skyrocketed.

 

Burnaby Real Estate Market Prices, 2012

It is always expected that an increase in supply accompanied by a decrease in demand results in lower prices. This has not been the case in the Burnaby Real Estate Market. The average prices have held steady and have risen over the last February.
In February 2010 the average price was $502,851, followed by $564,236 (+12.2 percent) in February 2011. In February 2012, the average home prices rose to $624,021 – a 10.6 percent increase compared to the same period the year before.

Key Points for Buyers

Despite the steadiness in prices followed by an increase in the past year, the Burnaby condo market still remain favorable for buyers – mainly because of the lower interest rates and the opportunity to get a five-year fixed rate at or close to prime. It may be the right time to buy given the large inventory to choose from and the lower interest rates.

Key Points for Sellers

When you give buyers more choices to make by increasing supply, it will take the buyers longer to buy. Just stick out from the rest and make sure your prices are competitive enough.

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One response to “Burnaby Real Estate Market Supply 2012”

  1. How To Be a Top Real Estate Agent says:

    Thanks for the article and hope to read from you again. “Burnaby Real Estate Market Supply 2012” – interesting title Richard. Congratulations again on a good job Richard.

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