The housing market in the Greater Vancouver area is going through an interesting time and, as a mortgage broker in Burnaby, I am seeing it all first-hand.
Home sales in Burnaby dropped significantly in August 2016 compared to August 2015.
Last month there were 272 total home sales compared to 414 in the same month last year. Sales dropped in every category; detached went from 124 to 44, attached dipped from 75 to 45 and apartments fell to 183 units sold after selling 215 in August 2015.
The biggest drop here is the detached homes and one of the biggest factors is likely because of the steep price jump year-over-year. In August 2015 the median sale price on a detached home was $1,261,090, whereas last month this number leaped to $1,520,000. Only Vancouver and Richmond posted greater median sale prices for August 2016 in areas covered by the Real Estate Board of Greater Vancouver.
This is a trend that residents of the area are all too familiar with. From August 2016 to August 2015 alone the benchmark price for a single detached home in Burnaby has increased by an average of 35.5%.
Over the past six months alone it has jumped by an average of 21.5% and behind only Vancouver and Richmond has experienced the great increase over the past 10 years.
Both median sale prices for attached homes and apartments have increased as well year-over-year. Attached homes jumped to a median price of $705,000 last month after coming in at $520,000 in August of last year. Apartments didn’t experienced as steep of a rise, going from $407,000 in August 2015 to $431,200 in August 2016.
In the first eight months of this year there have been fewer sales compared to the same period last year. Only apartments saw more sales as they jumped to 1,998 from January through August 2016 after selling 1,560 in the same time frame last year.
Listings are also up across the board in Burnaby. Although no single housing type saw more than a 32-unit increase in listings this past August, it’s still something to take note of. This is related to the fact that prices have increased so significantly and inventory is so low that people are not as willing to purchase as they once were.
How these numbers will continue to perform is yet to be determined, however with the price of homes rising at an alarming rate, the market must be watched closely.
The Canadian government has taken note of this risk and has brought in a new set of mortgage rules to help reduce the possibility of a housing crash.
If you’re looking to buy or sell a home in Burnaby it’s important that you consult someone who can help guide you through the process.
In a market as competitive and fast-paced as ours, talking to a Burnaby mortgage broker like myself can ensure that you put yourself in a safe position when it comes to your mortgage.
Contact me today for more information!