Has the real estate market on the Sunshine Coast fallen off a cliff?! Is the end nigh?!! I certainly don’t think so.

I believe we are seeing buyers and sellers adjusting to some new realities “out there”. Usually change is accompanied by confusion or, at least, a wait and see attitude by those active in the market.  We see this on the buyer’s side, clearly, by the lack of completed deals.  When we add the time of year to the mix, and the fact that many are simply opting for the beach and vacation mode over house hunting and selling, then we see the slow down as being even more pronounced. I believe we’ll see a big jump in activity over the month of August and into September as many folks who are deferring their purchase today will only wait “so long”.

Let’s see how July 2022 real estate stats break out:

Fully Detached home sales

Fully Detached home sales – were down by 87% in dollar volume to $10,050,000 and down 88% in unit sales to 9 units sold in July.  Our inventory climbed 41%, compared to the same time last year, giving us 261 available homes on market.  This means our sales success ratio (the amount of sales versus the available inventory) was 3.5%…this is deep into buyers’ market territory if we extrapolate this continuing.

Year to date is a bit more rosy with only a 23% reduction in dollar volume to $406,400,000 and a 34% reduction in unit sales to 342 homes sold.

The average price for a detached home so far in 2022 has risen 16% to $1,188,000.

Condo and Townhome sales

Condo and Townhome sales – were down 94% to $480,000 in dollar volume and down 94% in unit sales to 1 unit sold in July.  Our inventory fell 23% to 50 available attached homes on market.  This means our sales success ratio is 2%.

Year to date we see dollar volume is down by 31% to $60,800,000 and unit sales are down by 34% to 113.

The average price for a condo or town home is up 14% to $640,000.

Land only sales

Land only sales – were down 91% in dollar volume to $700,000 and down 85% in unit sales to 2 lots sold in July.  Our inventory decreased by 37% to 76 available units resulting in a sales success ratio of 2.5%.

Year to date we have seen a decrease in dollar volume by 25% to $61,500,000 and unit sales by 39% to 100 lots sold so far in 2022.

The average price for a piece of bareland has risen by 22% to $615,000.

Home Sellers

Home Sellers – Competitive pricing is more important than ever.  To get a sale done in 2022 may require a deeper cut to your asking price than you first imagined.  If you have bought recently this can have a concerning, negative impact. However, if you bought prior to 2020 then you are likely still in a very good position when it comes to equity.  My thoughts are that you deal with any deferred maintenance on your home and sharpen your pencil with regard to your bottom line and “what you need” to move forward.

Home Buyers

Home Buyers – This is a great market for you to achieve the kind of deal you want! Within reason one can create favourable terms through an offer on the “right one”.  On that note, don’t let the lack of action frighten you.  If you find “the perfect place” (and they are out there), don’t flounder around with indecision.  You know what you want so if you find it, buy it. Just do it on your terms. If you are looking but also “waiting and seeing” you will likely miss out and regret the indecision/fear.

External Factors Pressurize Home Buying

With regard to external factors we see the Bank of Canada raise interest rates again when they meet again September 7^th. Presently prime sits at 2.5% (with consumer prime around 4.7%). We will also see the BC Government introduce the buyer cooling off period as law moving forward on January 1, 2023.  Rather late and certainly inane tinkering with BC citizens’s ability to transact with one another….The cooling off period will amount to 3 business days and, if a buyer backs out of a deal during that time, they will be on the hook for a 2.5% penalty (think $2,500 on a million dollar home).

There are many other factors at play and this legislation raises questions around the process of buying and selling. I will have answers as our industry is informed by government….

For market stats call your realtor. For market intelligence call Russ Qureshi at ReMax City Realty 604-741-7119 or russ@coastlifestyles.ca

Sunshine Coast Real Estate Snap Shot

All segments of the Sunshine Coast Real Estate market have shrunk both in dollar volume and unit sales. At the time of writing this report, the Bank of Canada had just announced another .50% increase in the prime rate with warnings of more increases to come.  The British Columbia Financial Services Authority has made its’ recommendations to the Provincial Government with regard to consumer protection measures the government wishes to implement. Interestingly, they clearly said the recommendations would likely have unintended consequences and do very little for housing affordability. The latter will have an even more pronounced cooling effect on the market, at least temporarily, while the industry, and Buyers and Sellers, adapt to the new rules. Meanwhile, let’s see how last month rolled out.

Detached homes sales are down in dollar volume by 22% compared to last year’s $66,600,000, and unit sales are down by 35% to 55 homes sold in May.  The number of available listings is up 16% to 212…This means our sales success ratio is 26%. While we still consider this sales success ratio a “seller’s market”…,with the increase in inventory and reduction in sales, this percentage has halved since last month.  Year to date shows us down 12% in dollar volume to $340,000,000 and unit sales down 26% to 283 homes sold in 2022 so far.  The average home price is up by 19% to $1,200,000.

Condos and Town Homes are down in dollar volume by 28% to $11,525,000 and unit sales by 33% to 20 homes sold in May.  The number of available listings is down 22% to 39 condos and/or townhomes available for sale.  This means our sales success ratio is 51%!  This segment of the market, due to lack of inventory, continues to be a sellers’ market.  Year to date, we see that dollar volume is down 24% to $56,000,000, and unit sales are down 35% to 87 homes sold so far in 2022. The average condo/townhome price is up by 15% to $644,000.

Land only is down 67% in dollar volume to $5,150,000 and down 68% in unit sales to 9 land-only properties sold in May.  Inventory is down significantly from last year.  47%, to be exact, to bring available inventory to 65 lots.  This means the sales success ratio for this segment of the market is 14% putting it firmly in “balanced market” territory.  Year to date, we see dollar volume down by 12% to $59,000,000 and unit sales down 31% to 93 lots sold in 2022.  The average price for a piece of land is up 26% to $635,000.

I’ve noticed fewer multiple offer scenarios playing out, and sellers are starting to negotiate off their asking price!  The soft spot seems to be between 1.3 million and 2 million. Lower than that is brisk, and surprisingly, the higher end continues to chug along very nicely.

For market information contact your realtor. For market intelligence contact Russ Qureshi at ReMax City Realty @ 604-741-7119 or russ@coastlifestyles.ca

All segments of the real estate market on the Sunshine Coast BC are down both from last year and year to date.  Inventory is still low but, thankfully, increasing.  Other considerations are the variables of the Bank of Canada raising rates (in a big way) and the Provincial Government legislating a cooling-off period for buyers.  Get ready for the negative effects of the legislation on both home sellers and buyers.  Externalities aside, let’s see how the market stats break out:

Detached home sales

Detached home sales are down 22% in dollar volume to $82,600,000, and unit sales are down 33% to 70 homes sold in March (that is still a lot of home sales!).  Inventory, while creeping upward, is still down 10% from last year at 133 homes for sale.  The sales success ratio is 52%…a seller’s market, to be sure.

Year to date, we are down in dollar volume by 16% to $177,800,000, and unit sales are down 29% to 155 homes sold in 2022.

The average price for a detached home on the Coast (dollar volume/sales) is $1,147,000.  The median price (the price of the home that sold in the middle) was $1,050,000..it’s rare that the average matches so closely to the median.

Townhome and condo sales

Townhome and condo sales are actually up in dollar volume, over March last year, by 24% to $18,800,000, and unit sales are even at 27 condos and townhomes sold.  Inventory is down 19% to 42 available units for sale.  The sales success ratio is 64%…very slanted toward sellers.

Year to date tells a different story, with total dollar volume down by 13% to $35,700,000 and unit sales are down by 28% to 54 condos and townhomes sold so far this year.

The average price for condo/townhome so far this year (total dollar volume/total sales) is $659,000.  The median value (the home that sold in the middle) was $649,000.

Land only sales

Land only sales are down in dollar volume by 46% to $10,380,000 and unit sales by 42% to 20 lots sold in March.  Total inventory in this segment of the market is down 51% to 64 available properties putting the sales success ratio at 30%.

Year to date, we see dollar volume is down by 14% to $31,900,000 and unit sales are down 30% to 56 bare land properties sold so far in 2022.

The average price for land-only is $570,000, and the median price last month was $485,000.

Demand is slowing even before any significant rise in the prime rate and before the provincial government announces a cooling-off period for home buyers.  My prediction is that moving forward into spring, the real estate market in BC will continue to see fewer sales matched with less inventory.

Home-Buyers should stay the course by being financially prepared with a mortgage pre-approval or cash on hand, before going to look at homes.  The right properties get snapped up very quickly.  Take heart, offers are coming to the table with inspection and financing conditions.

Home-Sellers should be nimble with timing and price because navigating rate hikes and government announcements will require skill over the coming months.

For market statistics call a REALTOR®.  For market intelligence call Russ Qureshi at 604-741-7119.

Sunshine Coast Real Estate Sales Statistics for January 2022

Leading off the year, real estate unit sales in January 2022 on the Sunshine Coast, BC, took a breather due to low inventory.  Notably, the Bank of Canada did not raise the interest rates but may play catch up in March.  Therefore, now is a good time for home buyers to lock in an interest rate for the next 120 days.

Let’s dive into the stats:

As we get through the first month of 2022 with no market-shaking surprises, we see the market has been continuing in a robust way.  Inventory continues to be the greatest deciding factor in value across all market segments.

Detached home sales reached $34,175,000 in dollar volume, which is 12% lower than last year at this time.  Unit sales are down 14% to 36 homes sold in January.  The total available homes for sale are 74, down 42%.  This means our sales success ratio (the number of sales versus the available inventory) is 49%….The average price (dollar volume divided by units sold) for a home in January was $950,000.  The median price (what the middle home sold for) was $862,000.

Condo and townhome sales reached $5,141,000 in dollar volume, which is 46% lower than last year at this time.  Unit sales were down 50% to 9 condos or townhomes sold in January.  The total number of available homes in this segment of the market is 36, which is down 42%.  This means our sales success ratio is 25%.   The average price for a condo or townhome was $510,000, and the median price was $525,000.

Land only sales reached $7,400,000 in dollar volume, which is 9% higher than last year at this time.  Unit sales are down 23% to 16 lots sold in January.  The total available lots are 58, which is down 56% from last year.  This means our sales success ratio is 28%.  The average price for a lot was $462,000, and the median price was $449,000.

The statistics for the first month of this year seem to show the real estate market taking, what might be termed as, a breather…..Prices are up, but the slower pace of unit sales reflects the low inventory.  This month, a notable (non) event was the Bank of Canada holding steady with the present overnight lending/interest rate.  Economists expected at least a nominal rate hike to rein in the rapid inflation we are experiencing.  This did not happen, which left many scratching their heads in disbelief.  The next BOC announcement on rates will occur on March 2^nd.  We will likely see them playing “catch up” at that point.  If you’re a buyer, lock in your best interest rate now for 120 days if possible.

For market statistics call your realtor.  For market intelligence call Russ Qureshi with Coast Lifestyles Network!

The Sunshine Coast real estate market is realizing our seasonal slowdown. Fully detached and Land only properties are down a wee bit from last year’s totals, and the Condo/Townhome market is up! Let’s see how it breaks out:

Fully detached sales are down 7% in dollar volume to $68,750,000, with unit sales down 33% to 55 homes sold in November.  This stat shows the increase in value of each unit and how significant that has been over the recent past. 

It’s interesting to note, too, that we are only down $1,000,000 from last month’s dollar volume (approximately 1.3% lower), but we sold 8 fewer homes (approximately 12% less).  The available inventory is down 40% to 104 homes for sale…Therefore the sales success ratio (the number of sales versus the available inventory) is 53% keeping the detached market in sellers’ hands. 

Year to date, we are still up in total dollar volume by 40% to $820,000,000 and up 9% in unit sales to 777. 

November’s average sale price (total dollar volume divided by total sales) was $1,250,000, while the average sale price year to date is $1,054,000. 

Condos and Townhome sales are up in dollar volume by 18% to $12,350,000, and unit sales were down by 3% to 23 homes sold last month. As with the detached stat, this clearly illustrates the increase in value. 

Compared to last month, we are up 34% in dollar volume! The available inventory for the market segment is down 55% to 37 homes. Therefore, the sales success ratio (the number of sales versus the available inventory) is 51% keeping the attached market in sellers’ hands.

Year to date, we are up in dollar volume by 35% to $141,975,000 and unit sales by 25% to 249 condos or townhomes sold so far this year. 

November’s average sale price is $612,000, while the average price year to date is $570,000.

Land only sales are down in dollar volume by 5% to $7,700,000 and unit sales by 41% to 14 lots sold in November.  We are up 49% in dollar volume and up 40% in unit sales compared to last month. 

The available inventory for land is down 49% to 86 available units.  Therefore, the sales success ratio is 16%, giving this market segment some balance.

Year to date, we are up in dollar volume by 132% to $123,000,000, and units sales are up 46% to 227 lots sold in 2021 so far.

November‘s average price is $550,000, while the average year-to-date price is $540,000.

While demand eases, inventory continues to drop, causing prices to remain high and continue to climb in many cases.

Sellers are in control, but realizing a quick offer at or over the asking price requires thoughtful planning and preparation.

Buyers need to be prepared to act quickly and robustly to acquire the property they want…..there are rumours of increased interest rates next year that would affect the market strongly.  There are also rumours of the Provincial Government implementing a “cooling off” period for buyers (one of the strangest “sounds good” ideas I’ve heard in my career) in 2022.  More on both of those potential eventualities in my 2021 year-end review coming in early January. 

For market statistics, call your realtor. For market intelligence, call Russ Qureshi at Coast Lifestyles Network 604-741-7119.