Sunshine Coast Real Estate Market Seeing Some Bright Spots (October 2018)
The residential real estate market continued to decline on the Sunshine Coast overall but has seen some bright spots this past month.
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Detach sales are down in both units and dollar volume. The Sunshine Coast real estate market has declined 39% from last years’ highs with only 37 sales last month from last year. Total dollar volume came in at $25,4440,000 which is down 41% from last year. The average price for a detached home also fell from $750,000 to $690,000. This is a 8% drop.
Year to date the average price is still up 6% at $743,000 over last years $700,000. Total unit sales this year are down 24% to 421. The total units available for sale is up 25% to 383. Our closing ratio (total sales against available inventory) is 9.6% putting us in a buyers market for the first time in 36 months!
Condos and town home sales are down for both units and dollar volume. We saw 8 units sold compared to last years’ 17 units. Total dollar volume came in at $4,605,000 which is down 30% from last year. The average price of an attached home in September is a bit skewed at $549,000. The reason for the skewing was some high priced waterfront sales (879k and 794k respectively). The average price is up over last year by 22%.
Year to date we see that dollar volume is down 32% to $52,800,000 and unit sales closely match at 116 which is down 37% over last year. Total units available for sale are up 24% to 62. Our closing ratio is 12.9% showing this segment of the market to be balanced.
Land only sales are down slightly. September enjoyed 18 units sales…down only 1 unit compared to last year. Total dollar volume is down 14% to $8,000,000. The average price of bare land is down 7% to $600,000 but, of course, prices vary greatly depending on size and location.
Year to date we have seen the dollar volume slip 26% to $49,000,000 and units sales have slipped 21% to 126. Total available units for sale are down 8% to 200. Our closing ratio is 9% keeping land only properties in a buyers market.
While the portion of the market that includes folks that have to sell or buy continues, those buyers that enjoy the luxury of creating their own timing are waiting “to see what happens”. The successful sellers are leading the market by asking a price that is not only competitive but off the astronomical highs of this past spring.
There is a lot of uncertainty around the provincial budget and municipal elections. Once the provincial budget is tabled and the elections are finished we should see a surge of sales until just prior to Christmas.
If you are considering entering the market contact Russ, Ria or Terri at Coast Lifestyles Network for market intelligence!
Real estate sales on the Sunshine Coast for the month of August showed some bright spots as we continue to watch how things settle and how the market will be affected further. Let’s break it down with market intelligence:
Detached home salesfor August were the bright spot with $47,500,000 in sales volume. This is up 16% from the same time last year. Unit sales last month were down 14% to 54 detached homes sold. Ten of these sales were over $1,000,000 and one was at $5,000,000 hence the nonsensical results of less unit sales resulting in higher dollar volume.
Year to Date matches what has been happening with total sales dollar volume down 17% to $288,000,000. Unit sales are down also by 23% to 384 units sold in 2018 so far.
Total available listings are up 24% to 386. Our closing ratio (or sales versus available inventory) is 14% which keeps us in a balance market.
Attached home salesof condos and town homes took a big hit for dollar volume over August. The Coast saw $3,850,000 in sales which is down 74% from last year. Unit sales tell us the same story with 8 units sold. This is down 72% from last year.
The year to date numbers are a little brighter with total dollar volume reaching $48,100,000 down 32% from last year. Units sold this year are 108 down 37% from last year.
Total available listings are up 24% to 63. Our closing ratio on attached sales is 13% keeping it just inside a balanced market.
Land Only Salesfor last month were at a total dollar volume of $2,400,000. This is down 73% from last year. Unit sales are down 68% to a total of 6. Year to date we have seen $41,000,000 in sales volume which is down 28% from last year.
Unit sales for the year are down 23% to 108. Total available listings are actually down 12% to 207. The closing ratio for Land Only is 3%…this sounds dismal but is on par, historically, for the Coast.
The summer was excruciatingly slow for real estate. As you know there were many variables from the weather (distractingly beautiful or smoky!), to the federal mortgage stress test, to the new taxes the provincial government will likely be introducing with the fall budget.
You can now negotiate a deal rather than figure out how much you want to pay over asking price! There will be more choice in many segments of the market as well. Your best strategy for moving forward is getting pre-approved with your lender so you are ready to make the offer when the time comes. You also want to lock in to the approval for as long as possible (some lenders offer 120 days) as interest rates may rise again.
You should clearly understand why you are selling (many folks, amazingly, cannot give a detailed reason for selling other than their equity position is huge) and what variables are important to you ie. timing, terms or price. Sit down with your realtor and figure out the path that will be the most rewarding.
The Sunshine Coast real estate market continued to cool over the month of July 2018. Less demand and higher inventory are resulting in some modest price reductions across all types of property.
Let’s break it down:
Detached home sales were down 10% for gross dollar volume versus last year in July with a total of $43,250,000. Unit sales were down 16% to 54 homes sold. Year to date we continue to see a significant decline from 2017 totals with dollar volume down 21% to $240,100,000. Unit sales are down 24% to 330 detached homes sold so far in 2018. Total detached units available to market are up 18% to 372.
The closing ratio (the amount of unit sales versus available inventory)for July was 14.5% putting us in a balanced market for the second month in a row.
Condo & Town Home sales were down 56% for gross dollar volume versus last year in July with a total of $2,860,000. Unit sales were down 42% to 8 attached homes sold in July. Year to date we see a decline in dollar volume of 21.5% to $44,350,000. Unit sales are down 29.5% to 100 attached homes sold so far in 2018. Total attached units available to market are up 15% to 54.
The closing ratio for July was 15% putting the condo and town home market into a balance position for the first time in several years.
Land Only sales were down 36% for gross dollar volume versus last year in July with a total of $3,500,000. Unit sales were down 33% to 12 land only properties sold in July. Year to date dollar volume is down 19% to $38,550,000. Unit sales are down over the year by 17% to 102. Total land only units available to market aredown12% to 207.
Well, that’s a matter of opinion and here’s mine:) As usual any increase or decrease in the market pace is a result of several variables. We have the mortgage stress test as a variable – many buyers no longer qualify for entry level homes both in the Lower Mainland and the Sunshine Coast. We have an increase in available inventory across all property types which will also put some downward pressure on average dollar values. We see less demand by property buyers locally and from off Coast. Whether this is price “push back” or simply due to the lack of interest (it sure has been sunny and nice this summer) remains to be seen.
The average dollar value of detached homes & condos and town homes is increasing at the same time inventory is increasing. One would expect a reverse of this but it is not happening.
Detached home values are up 3% year to date yet inventory is also up 18%! Condos and town homes average sales price are up 11% while inventory is also up 14%. Land only properties sales price are down slightly by 3% and inventory is also down 12%!
Home Sellers should consider the overall trend and I believe that is – we are adjusting to the new reality for value yet one must be cognizant that there is more inventory to compete with. Don’t decide on value based on your competition. Decide your asking price using sold comparables as a reference. Being too ambitious in your asking price last year simply resulted in a few extra days on market. Being too ambitious this year can result in you not selling for months, having to adjust your price down (resulting in poor optics) and likely accepting a lower price later.
Home Buyers the market is balancing out for the most part and you won’t feel the same immense pressure to buy the first thing you see. While FOMO (fear of missing out) will continue to be a major variable in the condo and town home market it is no longer a factor for many detached home offerings. That said, the price of homes are unlikely to go down any more than what you can negotiate with an offer today so don’t wait if you need to buy. I’ve seen many buyers wait thinking the market is crashing only to miss out on the market entirely and continue to be in the position of having to rent.
If you have questions about buying or selling call us for real market intelligence.
In June, Sunshine Coast detached market saw $40,000,000 in dollar volume which is down 35% from last year. Unit sales for June were also down 42% to 51 units sold.
Year to date we have seen a reduction in unit sales of 25% down to 276 and a reduction in dollar volume of 24% down to $197,000,000
The average price for a detached home is $784,000.00
The average days on market prior to firm contract is 62.
Total available listings are up 16% to 348 units.
The closing ratio, or the amount of sales versus available inventory, is 15% – this moves us from a seller’s market to a balanced market for the first time in three years.
Sunshine Coast attached market, including townhomes and condos, is faring much the same as the detached market. We enjoyed $5,800,000 in dollar volume which is down 40% from last year. Unit sales for June were also down by 38% to 13.
Year to date we have seen a reduction in unit sales of 16% to 90 and a reduction in dollar volume of 16% to $41,500,000.
The average price for an attached home is $442,000.
The average days on market to firm contract is 40.
Total available listings are up to 48 from last year’s 36.
The closing ratio, or the amount of sales versus available inventory, is 27% keeping the detached market firmly in seller’s hands.
Our land only market on the Sunshine Coastcontinues in the same vein. We enjoyed $3,000,000 in dollar volume which is down 52% from last year. Unit sales for June were down 45% to 11.
Year to date we have seen a reduction in unit sales of 14% to 90 and a reduction in dollar volume of 17% to $35,100,000.
The average price of a bare-land sale is $390,000.00
Total available listings are down 17% to 201.
The closing ratio, or the amount of sales versus available inventory, is 5% keeping the land only market firmly in the buyer’s hands.
What does this mean?
We are seeing several variables take place. Most notably the federal stress test on all mortgages is having a huge effect on buyer demand. Imagine if you were in the market for a $700,000 home…. you have 25% down so you need to mortgage $525,000. You might find a lender willing to extend you a mortgage for a 5 year term at 3.19%…. however, you would have to qualify for that mortgage using the federal stress test. This means qualifying at the mortgage amount at, presently, 5.34%. This has, generally, cut purchasers buying power by 20%. While you may be able to afford the payments your mortgager would require (approximately $2500/month) can you pass the stress test which says you need to be able to afford a monthly payment of $3,125?
Additionally, while the Sunshine Coast is not directly affected, the speculation tax and empty homes tax contemplated by the provincial government are all having a negative impact on buyer confidence.
Sellers make sure your home shows extremely well! Make sure you price it right “coming out of the gate” understanding that the buyers out there have more choice and are tending to be more careful about their purchases.
Buyers are now enjoying a balanced market. While sticker shock is still an issue you will be able to, depending on the property, take some time to make the correct decision for you and even negotiate on price! Moving toward a balanced market also takes the FOMO (Fear of Missing Out) variable out of the equation.
Either way, make sure you are working with a REALTOR® you trust and make sure you are aware of the changes to our regulatory landscape. This affects how a realtor may interact with you. Please view our video at the bottom of this page for more information on Disclosure of Representation in Trading Services.
The Sunshine Coast continues to enjoy historically high average prices although sales are down and inventory is up. Lets look at how things break out:
The Sunshine Coast real estate market mirrored the greater Vancouver trend in April 2018 and saw fewer home buyers and more homes to choose from.
Compared to last April total sales went down 44.0% to $34,156,088 total dollar volume. The average price for April dropped 14.1% to $588,898 while the HPI (Housing Price Index) continued to grow 14.9% to $616,800 for the average home on the Sunshine Coast.
Total homes sold slipped 34.8% to 58 units and the number of homes for sale rose to 368 units not including bare land.
Even though, the average price of a detached home went down 10% in April to $643,309 the coach is stillbreaking historical trends for price.
Month over month April reached a total dollar volume of $27,018,978down 13%. Available homes for sale continued to grow, up 18% to 304 total detached homes for sale across the Sunshine Coast and 42 homes sold.
The average price of an attached home (condos and townhomes) for April dipped slightly to $449,706 down 7% over last month.
The total dollar volume dove 25% to $3,568,700. Total attached homes for sale went up a strong 31% to 54 units which opens up choice for condo and town home buyers.
The price of a bare land on the Sunshine Coast averaged $220,152. Total dollar volume is about half of last month at $3,302,280.
Available listings were steady at 182 available land-only properties for sale. Total land units sold for April went up slightly to 15 properties.
While the Coast continues to enjoy a strong seller’s market we are beginning to see the fallout from the Federal “stress test” for those needing mortgage monies and uncertainty about how the Provincial government is going to roll out their proposed tax changes for empty homes and non-resident and foreign purchasers. This will likely have a lingering effect over the next several months.
With that in mind the Sunshine Coast still enjoys the least expensive average home price in the Lower Mainland (including such areas as Squamish, Maple Ridge and Abbottsford where the average home price is $100,000 + compared to the coast).
For more information talk with your REALTOR®.
Contact Russ Qureshi and his team at http://coastlifestyles.ca
Compared to last March total sales went up 1% to $40,863,074. The average price jumped 22% to $665,139 and the HPI (Housing Price Index) grew by 20% to $575,583. Total homes sold dipped 13% to 63 sales and the total homes for sale remained even at 306.
Let’s look at how things played out month over month.
The average price of a detached home edged up 2% in March to $717,746, the highest price ever on the Sunshine Coast. Incredible!!
Month over month March reached a total dollar volume of $31,580,840 up 24%. Available homes for sale grew 17% to 257 total detached homes for sale across the Sunshine Coast with 44 homes sold giving home buyers more choice.
The average price of an attached home (condos and townhomes) for March was $483,311 up 13% over last month. The total dollar volume reached $4,771,700 down 1%. Total attached homes for sale reached 41 up 14% which helps satisfy pent up demand.
The average price of a bare land on the Sunshine Coast in March was $573,799 up 80% due to the sale of a development property in Port Mellon.
Total dollar volume of $6,885,590 isup 53%. Available listings were steady at 180 available land-only properties for sale. Total land units sold for March was 12.
The real estate market on the Sunshine Coast remains strong going into what is traditionally our busiest season with prices remaining to grow. The pressure is off a little as more inventory comes onto the market giving home buyers more choice and sellers more competition.
Timing, pricing and location are the biggest factors in how quickly a property will sell in a busy market like the Sunshine Coast BC.
Speak with a REALTOR® licensed in your area to gain insights into current real estate market activity in your neighbourhood.
For all your real estate buying, selling and investment needs on the Sunshine Coast BC contact Russ Qureshi and his team at http://coastlifestyles.ca
Russ Qureshi, REALTOR®, Associate Broker
Royal LePage Sussex
117-1100 Sunshine Coast Hwy
Gibsons, BC V0N 1V7