Burnaby Real Estate Market 2020 Review

Share Article

The city of Burnaby, along with other areas of Greater Vancouver, was not immune to the impacts of the global pandemic on real estate. Interestingly, the market didn’t take long to respond positively. This was partly due to the great work of the Real Estate Boards, Worksafe Councils and Health Canada in ensuring safe practices continued to allow real estate agents to meet the changing needs of home buyers and sellers. The other causes can be attributed to;

  • The end of a lull in the market 2019.
  • Changing needs and behaviours of our society due to the pandemic. 
  • The lack of a ‘spring season,’ which accumulated demand amongst buyers, leading to an explosion of activity during summer onwards.
  • Record low mortgage interest rates.
  • The higher income jobs market actually increased in 2020, this would include those people who are able to afford housing in and around Vancouver. The lower-income jobs, such as service sector employees, were hit the hardest in 2020, though these people make up a smaller portion of real estate buyers.

In this article, we reflect back on a turbulent year in the real estate world and give you the facts to help you make your buying or selling decision for the year ahead. If you have any questions about these statistics, the market in general, or living in Burnaby, please reach out to local experts Heather Mah and Brandon Chow by clicking the button below.

Chat With Us

 

How many Condos, Townhouses and Houses sold in 2020? 

Let’s start with home sales. The number of condo, townhouse and detached family home sales can tell us a lot about the state of the market and our buying and selling behaviours. Based on the background given in our overview we can also align the differences seen here to many behavioural changes that have occurred due to the tumultuous events of 2020. 

 

Burnaby condo sales in 2020.

Condo sales in Burnaby picked up after the initial dip during March. 

The amount of condos sold across Burnaby in 2020

Stats courtesy of the REBGV.

The more densely populated areas in North and South Burnaby saw a steady increase of listing and sales volume throughout the year. In total, 1910 condos were sold across all of Burnaby at an average sales to listing ratio of 22.66%. This is just above the threshold where we could determine the market to be in favour of sellers and this looks set to continue for the first few months of 2021. 

When compared to what was a quiet end to 2019, December 2020 had a 59% increase in listings and a 31% increase in sales. This probably speaks more to the conditions at the end of 2019 than anything else. 

 

Burnaby townhouse sales in 2020.

The busy season between August and November in 2020 demonstrated a big bounce back in activity for townhouse sales. 

The amount of Burnaby townhouses sold in 2020

Stats courtesy of the REBGV.

It is often tricky to determine what these statistics mean. We often need to consider the broader context of how densely Burnaby is populated in certain areas, how many new townhouse developments are selling, and how townhomes represent the overall proportion of available accommodation. In any case, there was a steadily increasing sales to listing ratio which peaked at 55% in December as the total number of townhouse sales in 2020 hit 485. Comparing December 2019 to December 2020, townhome listings and sales were, in fact, both quieter this year.

 

Burnaby house sales in 2020.

Single-family detached homes were the apple of many people’s eye in 2020. A craving for space at a time when we felt trapped gave rise to the seemingly endless line of people seeking a lifestyle change. Across the market, we also saw many new faces arrive in Burnaby who were perhaps relocating away from more densely populated areas in the city and from Downtown Vancouver. 

Total number of detached family homes sold in Burnaby in 2020

Stats courtesy of the REBGV

Detached family homes reached a year-end total of 832 sales, with Burnaby South contributing 315; Burnaby North 416 and Burnaby East 101. With a total of 223 active listings in December and 80 sales in this period across all of Burnaby, the end of the year gave rise to a peak sales to listing ratio of 35%, putting the detached home market well in favour of sellers. 

 

Was Burnaby a buyer’s or seller’s market in 2020? 

Firstly, it is probably most useful if we quickly describe the way that we determine whether the market is in favour of buyers or sellers.

 

When does the real estate market favour buyers?

A buyer’s market means that there is more inventory (homes) than there are available buyers. This gives those looking for homes a little longer to search and more options to choose from. Normally when the market is in favour of buyers, sale prices remain flat or are even driven down as homeowners compete with each other to sell their homes. When looking at housing market data, you can determine the market to be in favour of buyers when the sales-to-active listing ratio is below 12%. 

 

When does the real estate market favour sellers?

Conversely, a seller’s market is determined to be one which has lower inventory (homes) than available buyers on the market. This means buyers have less choice available, more competition for the home that they wish to buy and they are often faced with rising prices. When the market is in favour of the seller they also tend to have more negotiating leverage. Typically, this is indicated when the sales-to-active listings ratio is at 20% or higher.

 

A balanced market fits in the middle. 

A balanced market which is good for both parties occurs when home supply and demand from those looking to purchase is around the same. The middle ground for this is between the 12% and 20% sales-to-active listing ratios that determine whether the market is in favour of buyers or sellers.

 

Did 2020 favour buyers or sellers in Burnaby?

The sales to listing ratio of the Burnaby Real Estate Market in 2020

Statistics courtesy of the Real Estate Board of Greater Vancouver

Since July 2018, the Burnaby real estate market had been relatively balanced, with detached houses generally favouring buyers and condos and townhouses fluctuating at various times. 

At the start of 2020, the condo and townhouse markets were both in favour of sellers, with detached homes being balanced. The impact of the global pandemic really impacted real estate behaviours, starting with a complete dip in both sales and listing activity. However, once safe protocols were introduced our changing behaviours and needs kick-started the market again. The rest of 2020 saw low inventory levels across Burnaby, tipping the whole market into the favour of sellers. 

 

Starting 2021 in a seller’s market.

The trajectory of the real estate market looks set to continue for the next few months and you could capitalise on it. 

If you are considering selling your home, why not get a free consultation and valuation from Burnaby’s top real estate agents. Simply click the button below and submit the form, giving us a bit of background on your home, we’d be more than happy to help. 

Send Me A Valuation

 

What were the average house prices in Burnaby throughout 2020?

The Real Estate Board of Greater Vancouver does a great job of tracking real estate data. Interpreting it can often be a challenge, however, so let’s break this down a little bit. 

Determining an average price in a real estate market as comprehensive as Burnaby is difficult, as houses in varying neighbourhoods sell at different prices, different volumes and at different rates. The MLS® Home Price Index is the industry preferred measurement to give a clear picture of market trends as it excludes homes in the extreme high and low ends of the pricing scale. Using this price index we put together a picture of the average price trend throughout 2020. 

Average property prices in Burnaby in 2020

 

Statistics courtesy of the Real Estate Board of Greater Vancouver

Average Condo Prices

The average price of a Condo in Burnaby didn’t move too much in 2020, starting the year at $661,133 and ending with a 1.6% increase to $671,667. 

 

Average Townhouse Prices

Townhouse prices in Burnaby experienced a period of growth in 2020, most likely fuelled by fact that the market was in favour of sellers and many condo owners were looking to purchase a home with more space. Over the year, the average price of a townhouse increased by 4.45% to $746,167.

 

Average Detached Family Home Prices

The average price of a detached family home increased by 8.4% over 2020, moving from $1,361,800 in January to $1,476,033 in December 2020. As we’ve already mentioned, this can be attributed to a high sales to listing ratio and the evident change in needs as people were forced to work from home more and craved more space. 

 

How does this compare to Burnaby home prices in 2019? 

Burnaby real estate, as well as the Vancouver market as a whole, saw a drop in prices and values over 2019, particularly through the period of July – December 2019. At the close of that year, Burnaby average property values were; 

  • $654,000 for a condo 
  • $721,000 for a townhouse
  • $1,344,000 for a detached family home

One thing is always certain about real estate – it is a long term investment. Sitting patiently in a market as desirable as Burnaby and Greater Vancouver will bear fruit. As we come to the end of 2020 and look back to 2019, the average prices for this year demonstrate an average increase of +9.8% for detached properties, +2.5% for condos and +4.6% for townhomes. 

When we consider the human and societal changes that have impacted this year, the need for more space is a clue to understanding why townhomes and detached properties have led the charge in property value gains. 

 

What future trends can we expect in Burnaby real estate? 

Disclaimer: we cannot predict the future. However, we do have a good sense and understanding of how things could play out in 2021. 

 

Increased property values.

Now that the market has tipped into the favour of sellers, expect homes prices to continue to rise in Burnaby. 

 

Neighbourhoods offering lifestyle changes should perform well in 2021.

We predict the slightly quieter and more natural neighbourhoods of Burnaby will be even more desirable in 2021 as people seek to establish themselves in areas with more space. This trend was clear in 2020 as we helped people relocate from areas such as Metrotown, as well as Downtown Vancouver, into more spacious neighbourhoods. 

 

New construction developments on the rise.

There are roughly 130 new construction developments being built in Burnaby today (18th January 2020). Around a third of these are in the registration phase, so if you are in the market for a brand new home, townhome or condo, reach out to us for more information. 

 

A large cohort of millennial homebuyers.

The ‘Millennial’ age cohort is generally considered to include people born between 1981 and 1995. In 2021, this age group of people are starting to reach their peak years for wage growth and thus will make up a huge population of home buyers over the next few years. Burnaby offers both densely populated areas with vertical living options and lower-cost entry into larger, spacious townhomes. This means that Burnaby is poised perfectly to captivate the increasingly active market of Millennial homebuyers.

 

Forecasted growth up to 2040.

10 years ago, the City of Burnaby’s historical reporting and trend forecasting predicted continued growth to the third most populous area of British Columbia, an area renowned for being a culturally diverse and exciting area of Vancouver. According to the City’s growth projections in 2011, Burnaby’s total population was expected to grow at an average annual rate of 2.1 per cent from 223,000 to 270,000. The 2016 census put the current population at 235,000, so despite coming in slightly under the rate expected, Burnaby is certainly set for continued growth.

So where do we house all of these wonderful people? According to the city planning team back in 2011, an additional 60,000 dwelling units were expected to be required. With the rate of growth hovering slightly lower than expected now we have hit 2021, this may be slightly less, but growth is sure to continue. 

 

These trends in Burnaby’s growth will give buyers a strong long term assessment of the value of an investment in the real estate market. Further, the continuing development of the communities also ensures Burnaby will continue to thrive and be a place many would love to call home.

If you want to call Burnaby your home all you need to do is reach out to us today and we’ll take care of the rest. Simply give us a call from our information here, or submit a form to book an appointment with us today. 

Chat With Us

 

Wishing you all the very best for a healthy and prosperous 2021.