We recently sent out a Market Update to our clients as we have become quite concerned about some of the stats and activity lately. We thought we'd also post this update for all our readers out there so you can also be informed, especially if you're thinking about buying or selling.
SUPPLY > DEMAND
Active listings in Burnaby have now exceeded 500 for the first time in over 2 years. Sales have plunged in the last 30-60 days after solid activity in March and April. There have only been 18 sales of detached homes in South Burnaby in the last 30 days and only 2 of those sales were over $2 million - highest was $2.8. By comparison in the 30 day period prior to that: 41 homes sold and 10 homes sold over $2 million.
We feel the rapid increase in listing supply and the drastic drop in buyer demand are far beyond seasonal norms. Possible culprits are the surprise interest rate increase, a continued drop in offshore money coming our way, bank tightening and continued affordability issues. Of course, corrections are a normal market behaviour and we are LONG overdue based on historical norms.
WHAT DOES THIS MEAN FOR YOU?
It appears that after a Spring pause, the downtrend that began last August is set to resume and a larger, potentially more severe correction could be ahead. We do feel there is still an excellent window of opportunity to sell this year but a more aggressive approach is needed.
If you're thinking about buying or selling, or want more information about the market, contact us today!