As with most years in real estate, 2018 real estate market on the Sunshine Coast has given us some twists and turns! We have seen some regulations that will change how real estate is conducted in British Columbia.
Most notably, the listing REALTOR® can no longer represent a buyer on that REALTOR®’s listing (no more limited dual agency).
Buyers have had to suffer the federal governments stress test even on uninsured mortgages, and this has had the desired effect of cooling the real estate market across the country.
Add to this some significant taxes levied on second homes and recreational dwellings in certain areas of British Columbia and the empty home tax in Vancouver and we end up with a depressed market.
Sunshine Coast Wild Card
The real wild card to pay attention to is the fact that prices in many areas of the market remain quite buoyant! While we have seen significant equity loss in the Lower Mainland, especially in very high-end properties, the Sunshine Coast has enjoyed a very minimal equity loss for property owners and an overall increase in value and equity in both detached and attached properties.
Detached Homes
December 2018 was one of the slowest months in Real Estate on the Sunshine Coast in recent memory. Here is how it breaks down:
Detached home sales were down for December. Unit sales dropped 71% to 14 units sold. Dollar volume is almost the same – down 78% to $8,750,000. There are 279 active, detached listings and the closing ratio (the number of sales versus available inventory) was a little over 5% putting the market firmly in the buyer’s hands.
The year, as a whole, was not near as bad with unit sales down 29% to 514 homes sold. Dollar volume for 2018 is down 27% to $372,000,000. The average sale price for a detached home in 2018 was up 1% to $724,000.
Condos and Townhomes
Condo and townhome sales were down for December. Unit sales decreased 34% to 7 units sold. Dollar volume shift is almost the same as sales – down 35% to $3,155,000. There are 46 condos and townhomes for sale, and the closing ratio was 15% keeping this type of properties in a seller’s market.
The year as a whole is down considerably in the townhome and condo market with unit sales off last years mark by 40% for a total of 139 units sold. Dollar volume for 2018 is down 36% to $64,050,000. The average sale price of a condo in 2018 was up 6.5% to $462,000.
Land Only Sales
Land only sales were predictably down in December. Unit sales experienced a reduction of 54% to 5 units sold. Dollar volume is down 69% to $1,325,000. There are 188 land only properties for sale, and the closing ratio was 2.65% keeping this segment of the market in the hands of buyers.
The year as a whole in the land only market is down with unit sales missing last year’s mark by 24% to 152 and dollar volume telling the same story down 29% to $56,500,000. The average sale price for a land only property was down 6% to $372,000.
Outlook for 2019
Demand is down, inventory is up, and we still have an increase in values for detached homes, condos and townhomes.
I am optimistic about 2019 with these caveats:
Sellers
Price your home competitively if you want to sell. Although prices are up, overall detached home sellers need to be savvy about how they compete with the other inventory.
Attached home sellers enjoy the most sought-after segment of the market but still need to be conservative in their desired asking price over the “last sale in the complex.”
Buyers
Don’t wait out for this market because lots of folks are thinking the price is going to fall off but, as evidenced by 2018, this is unlikely to be the case in any way. If you find the right home or investment make the offer today with the price you want to pay. If you see just the right thing but wait, you will likely lose it or pay the same.
Overall Impressions
Things to watch for in 2019 are interest rate hikes, changes to the mortgage stress test requirements and inventory levels. The Bank of Canada has been very dovish in it’s most recent announcements regarding raising interest rates, and it is unlikely we will see a rate hike during the first quarter of 2019. Watch for any changes to the mortgage stress test. If there is a softening of the stress test, we will see more buyers enter the market. Watch for inventory levels to rise considerably making the competition factor for sellers greater.
Peace of Mind
Now, more than ever, it is essential to have a professional in your corner whether you are a buyer or seller. The market is nuanced and highly detailed, so it’s worth investing in the peace of mind that the assistance of a professional REALTOR® delivers.
Contact Russ or Terri at Coast Lifestyles Network for real estate market intelligence.
Seasonal spring/summer real estate cycle returns to the Sunshine Coast
/in Sunshine Coast Real Estate /by Ria QureshiThe Sunshine Coast’s cyclical real estate market is back. Over 2015 – 2018 the local “sales cycle” on the Sunshine Coast was thrown for a bit of a loop. With such huge demand, low inventory and rising prices, every month during those years was like being at the top month of our familiar late spring/early summer high demand months for real estate.
2019 leaps back into a historical, seasonal cycle. Let’s see how the month of May breaks out:
Residential Detached
Residential detached dollar volume was down 32% from last year’s numbers to $32,600,000. Unit sales were down by 30% to 47 homes sold. Year to date we see a 22% drop in dollar volume to $121,000,000 and a 24% drop in unit sales to 169 so far this year. Our success ratio – measured by comparing total sales this past month to total available inventory ( 47/440= .1068) or 10 – 11%. It is generally accepted that a success ratio of less than 10% is a buyers market, 10 – 15% is a balanced market and more than 15% is a seller’s market. Therefore, we are in a balanced market but on the cusp of a buyer’s market. The average price of a home, year to date, is still up 2% over last year and sits at $716,000.
Townhome and condo
Townhome and condo dollar volume was down 27% from last year’s numbers to $7,100,000. Unit sales were down by 31% to 22 units sold. Year to date we see an increase of 2.5% in dollar volume to $36,700,000 and a 16% drop in unit sales to 66. The dollar amounts can be accounted for by some of the reported presales on the Eagleview Heights development. As an aside, watch these numbers become more “skewed” as the Touchstone development comes online at some point this year. Our sales success ratio in this segment of the market is 16% (15 units sold out of 94 available) and puts us in a seller’s market situation. The average price of a townhome/condo unit (skewed by the high sale amount presales) is up 17% to $550,000.
Bare land
Bare land is doing its usual thing with a 42% drop in dollar volume to $6,900,000. Unit sales follow closely with a 45% drop to 13 units sold. Year to date we see a decrease in dollar volume of 47% to $16,725,000 and a drop of 51% in units sales to 38 bare land properties sold. The sales success ratio for bare land is 6% making it a buyers market. The average price for this kind of property has increased by 8% to $440,000.
What does this mean?
Detached homes sellers are in competition
Detached homes sellers should be spending some time and money to prepare their home for the market. Deferred maintenance, a new paint job, even cleaning the windows and mowing the lawn are all items you should be paying attention to so the home shows it’s best. Secondly, be sharp with your price. There is a lot of inventory to choose from in the $700k – $900k range so your home has to stand out. The best way to make your home stand out is to price it well. That is a relevant factor so contact your realtor for details.
Townhome and condo market is strong for sellers
Townhomes and condo sellers should also make sure the home shows well and any deferred maintenance, especially cosmetic, is taken care of prior to listing. This segment of the market is strong now so, if you are considering selling, don’t hesitate to contact your realtor about getting it to market sooner than later. With the presale offerings that are present and others that will soon be available to the market, this segment will soften over the next 12 months. At least, that’s my expectation.
Bareland sales is a crapshoot
Bareland sales continue to be a bit of a crapshoot. If you have raw land to sell, make sure it is accessible for a walkabout (trails, paths, building sites and clearly marked boundaries). If you are selling more of a city lot or subdivision-style lot, then make sure you understand where your competition is positioned and what historical sales can show you regarding asking price.
For market information, call your realtor. For market intelligence call Russ or Terri with Coast Lifestyles Network!
Seasonal jump in townhomes and condos on the Sunshine Coast BC
/in Sunshine Coast Real Estate /by Ria QureshiDollar volume and unit sales continue to decline in the detached market while the condo and townhome market saw a big jump in both dollar volume and sales last month. Let’s see how this breaks out:
Detached home sales
Detached home sales were down in dollar volume by 21% compared to last year for a total of $21,100,000. Units sales were down 30% to 29 homes sold. Year to date we seem to be closing the gap! Dollar volume is down only 18% to $88,500,000 and unit sales are down only 22% to 122. Inventory has jumped up 25% to 381 units available. The success ratio, or the amount of sales versus available inventory, for detached homes is 8% putting the detached home market firmly in the hands of buyers. All this said the average home has increased in value by 4% to $725,000.
Condos and Townhomes
Condos and Townhomes show a rosier result with dollar volume up by 34% to $11,300,000. Unit sales are up only slightly by 5% to 18 units. This “weirdness” can be accounted for by presales in a Gibsons project/development. Year to date numbers shows we are closing the gap in this portion of the market as well. Dollar volume is up by 15% to $29,700,000. Unit sales are down slightly by 10% to 51. Available inventory is up 38% to 88 units available. The success ratio is 20% putting the attached market in sellers hands. The average price, again skewed by some of the high-end presales, is up 11% to $575,000.
Bare Land
Bare land is down in dollar volume by 78% to $700,.000 and down 86% in unit sales to 2…bare land properties sold in April….Year to date is not quite as pronounced with a reduction in dollar volume by 50% to $9,850,000 and unit sales closely matching that by being down 54% to 25 units sold this year. Inventory is up 13% to 206. The success ratio for bare land is less than 1%. The average price of a property this past month was $350,000.
Seasonality of the real estate market
The seasonal cycle is back and showing in the detached and attached statistics. We should see a further closing of the gap and good numbers over the next month. I’m at a loss as to why only 2 bare land sales occurred last month but let’s call it an anomaly and we’ll see how that plays out next month.
Detached home sellers MUST COMPETE on price with other listings and should be looking at sales going back only to the beginning of the year to reference value.
Attached home sellers can continue to push the envelope on price if they want to chance it. If you want to be sure of a sale in the shortest time (and there can be lots of value in that!) then be competitive on price!
Bare land sellers should hold off. If you have no choice but to sell then keep the price sharp and be prepared to be on market for a while….that said, larger view lots are always in demand.
For market information contact your REALTOR®. For market intelligence contact Russ or Terri with Coast Lifestyles Network!
Coming out of the slump
/in Sunshine Coast Real Estate /by Ria QureshiThe real estate market on the Sunshine Coast is picking up and we are definitely noticing more action at Coast Lifestyles Network.
Here’s how things are playing out for the Sunshine Coast:
Detached homes
Detached homes have seen a 15% drop in dollar volume (from last year’s record-breaking highs) to $26,600,000. Unit sales are mirroring this trend with a 13% drop since last year to a total of 38 units sold Inventory is up 24% 321 units available. The success ratio (the number of sales versus the available inventory) was 12% which puts us on the cusp of a balanced/buyers market.
Year to date we are down overall for dollar sales by 17% to $67,300,000. Unit sales this year are down 19% to 93. The average cost per home is up 2% for the year to $723,000.
Condos and Town Homes
Condos and Town Homes have seen a 25% drop in dollar volume to $6,950,000. Unit sales are close to this with a 31% drop to 13 units sold. Inventory is up over 100% with 87 units available. Much of the latter skew can be attributed to presale units for development in Gibsons. The success ratio is 16% making this segment of the market on the seller’s side of balanced.
Year to date we are down overall for dollar sales by only 2% to $18,300,000. Unit sales this year are down 19% to 33. The average cost per unit is up 15% to $547,000 (this number is skewed by the new development price/unit occasionally topping $1,000,000).
Land
Land only sales have seen a 61% drop in dollar volume to $2,640,000. Unit sales are down 58% to 5 units sold. Inventory is up 8% to 195 units available. The success ratio is about 2.75% keeping the land only market in buyers hands.
Year to date shows the same picture with dollar volume down 45% to $9,150,000. Unit sales down 42% to 23 sold this year. The average cost per unit of land only is down 4% to $398,000.
Coming out of the slump
Interesting numbers to be sure…the feeling is we are coming out of the slump that has been the market for the past six months. Let’s see if the Sunshine Coast selling cycle is back (most sales occurring in the spring months).
For information call your realtor. For Market Intelligence get in touch with Russ or Terri from Coast Lifestyles Network!
Sunshine Coast real estate market jumps ahead into spring
/in Sunshine Coast Real Estate /by Ria QureshiSunshine Coast real estate market jumps ahead into spring in both detached homes and condos and townhomes this past month whereas land only continues the trend of a downward slide.
Let’s break it down and see what this looks like:
Detached Homes
Detached Homes saw an 11% increase in dollar volume for a total of $27,250,000. Units sales are only up 2% to 36 units sold. February was a catch-up month as the year to date totals for dollar volume are down 18% to $40,750,000 and unit sales down 22% to 55 units sold in 2019. Some of the increase can be accounted for by a single $4,300,000 sale.
The amount of available detached homes for sale is up 28% to 275. This puts our sales ratio at 13% (13 homes are sold for every 100 available) which is generally thought of as a balanced market. The average price for a home on the Sunshine Coast in February was $758,000 with the year to date average price coming in at $740,000.
Condos and Townhomes
Condos and Townhomes saw a 31.5% increase in dollar volume for a total of $7,000,000. Units sales are up 15% to a total of 13 units sold in February. The skew in the dollar volume comes from the fact that many of these sales are “pre-sale” units in the Eagleview Heights development in Gibsons. As per the developer’s disclosure on this project, these units should be available in spring 2022.
Year to date we have seen an uptick of 16% to $11,350,000. Unit sales this year are down 10% to 20 units sold. The amount of available condos and townhomes for sale is up 43% to 63. This puts our sales ratio at 21% (21 units are sold for every 100 available) which is generally thought of as a seller’s market. The average price for a condo or townhome on the Sunshine Coast in February was $543,500 with the year to date average price coming in at $583,500.
Land Only Sales
Land Only Sales saw a 30% decrease in dollar volume to $3,100,000. This is not unusual from a seasonal point of view. Unit sales are down 50% to 7 units sold in February. Year to date we have seen a slide in dollar volume of 33% to $6,500,000. Unit sales this year are down 35% to 18 units sold.
The amount of available bare land lots for sale is up only 4% to 181. This puts our sales ratio at 4% (4 units are sold for every 100 available) which is very much a buyers market. The average price for bare land on the Sunshine Coast in February was $445,000 with the year to date average price coming in at $361,500.
We are seeing some renewed jump in the market! My colleagues are reporting more people at open houses and more offers being written.
Buyers can still look at getting a good deal in the detached market but don’t be stingy if you want to get into a condo or townhome.
Sellers should consider having a competitive price to get an offer on the table but it depends on your situation and goal for a sale.
For information contact your realtor. For market intelligence contact Russ or Terri with Coast Lifestyles Network.
Lead the real estate market during the slow months
/in Sunshine Coast Real Estate /by russqureshiSales are better than December 2018 however it is still one of the slowest months in recent memory! Learn more on how home sellers can lead the real estate market.
Detached homes sales are down in dollar volume by 47% from last year. Total dollar volume for January was $13,500,000. Unit sales closely matched at 47% down from last year with 19 sales. We have a total of 276 active listings available which is up 44% from last year. This puts our sales success ratio (the amount of sold properties verses available listings) at 6.8% which denotes a market heavily in the buyers’ hands. The average price of a detached home in January was $709,000.
Condos and townhome sales are down in dollar volume by 8% from last year. Total dollar volume for January was $4,360,000. Unit sales are down by 34% with only 7 sales. We have a total of 62 active attached listings which is up 48% from last year. This puts the sales success ratio at approximately 12%. This is inching toward a buyers market but is not having much effect on price. The average price of a condo in January was $692,000. That number is heavily skewed by the presales of Eagleview Heights which is Gibsons latest development.
Land only sales are down in dollar volume by 36% from last year. Total dollar volume for January was $3,400,000. Unit sales are down by 21% to 11 sales. We have a total of 181 active land only listings which is up only 2% from last year. This puts the sales success ratio at a relatively steady 6%. This segment of the market continues to be firmly in the hands of buyers. The average price of a bareland property in January was $308,000.
Sellers my ongoing advice is don’t be overconfident with price. Know what else is available that is going to compete with your home! One of the best things to do is to LEAD THE REAL ESTATE MARKET whether it is going up or down. Consider listing under the price of your next closest competitor. This will have the dual advantage of getting you sold faster and with less grinding on price. As always, make sure your home is in a highly showable condition. Don’t defer regular maintenance, make sure the home is clean and tidy and accommodate buyer requests for viewing times.
Buyers if you find the right property for you go for it! There are a lot of great deals happening in the market place right now! Don’t miss your dream home or quality investment because you think the market is going to fall further. Make the deal you want today. Do most of your homework prior to offering on a property so you can present an offer that is solid, clean and easily accepted.
For market intelligence call Russ at 604-741-7119 or Terri at 604-741-7774 or send us an email
Announcing a change in partnership
/in Sunshine Coast Real Estate /by russqureshiCoast Lifestyles Network is pleased to announce a change in partnership, Ria Qureshi has moved on as of January 28, 2019, and is now a certified professional coach and yoga teacher helping people move through growth and transformation.
Russ Qureshi and Terri Murphy remain committed to providing you with outstanding service, expert negotiations and local knowledge as you navigate buying, selling or investing in real estate on the Sunshine Coast.
If you have any questions, please call or email Russ Qureshi at 604-989-2253, russ@coastlifestyles.ca
Royal LePage Sussex #1 on the Sunshine Coast
/in Sunshine Coast Real Estate /by Ria QureshiRoyal LePage Sussex #1 brokerage on the Sunshine Coast
January – December 2018, sales volume
Real estate twists and turns in 2018 and outlook for 2019
/in Sunshine Coast Real Estate /by Ria QureshiAs with most years in real estate, 2018 real estate market on the Sunshine Coast has given us some twists and turns! We have seen some regulations that will change how real estate is conducted in British Columbia.
Most notably, the listing REALTOR® can no longer represent a buyer on that REALTOR®’s listing (no more limited dual agency).
Buyers have had to suffer the federal governments stress test even on uninsured mortgages, and this has had the desired effect of cooling the real estate market across the country.
Add to this some significant taxes levied on second homes and recreational dwellings in certain areas of British Columbia and the empty home tax in Vancouver and we end up with a depressed market.
Sunshine Coast Wild Card
The real wild card to pay attention to is the fact that prices in many areas of the market remain quite buoyant! While we have seen significant equity loss in the Lower Mainland, especially in very high-end properties, the Sunshine Coast has enjoyed a very minimal equity loss for property owners and an overall increase in value and equity in both detached and attached properties.
Detached Homes
December 2018 was one of the slowest months in Real Estate on the Sunshine Coast in recent memory. Here is how it breaks down:
Detached home sales were down for December. Unit sales dropped 71% to 14 units sold. Dollar volume is almost the same – down 78% to $8,750,000. There are 279 active, detached listings and the closing ratio (the number of sales versus available inventory) was a little over 5% putting the market firmly in the buyer’s hands.
The year, as a whole, was not near as bad with unit sales down 29% to 514 homes sold. Dollar volume for 2018 is down 27% to $372,000,000. The average sale price for a detached home in 2018 was up 1% to $724,000.
Condos and Townhomes
Condo and townhome sales were down for December. Unit sales decreased 34% to 7 units sold. Dollar volume shift is almost the same as sales – down 35% to $3,155,000. There are 46 condos and townhomes for sale, and the closing ratio was 15% keeping this type of properties in a seller’s market.
The year as a whole is down considerably in the townhome and condo market with unit sales off last years mark by 40% for a total of 139 units sold. Dollar volume for 2018 is down 36% to $64,050,000. The average sale price of a condo in 2018 was up 6.5% to $462,000.
Land Only Sales
Land only sales were predictably down in December. Unit sales experienced a reduction of 54% to 5 units sold. Dollar volume is down 69% to $1,325,000. There are 188 land only properties for sale, and the closing ratio was 2.65% keeping this segment of the market in the hands of buyers.
The year as a whole in the land only market is down with unit sales missing last year’s mark by 24% to 152 and dollar volume telling the same story down 29% to $56,500,000. The average sale price for a land only property was down 6% to $372,000.
Outlook for 2019
Demand is down, inventory is up, and we still have an increase in values for detached homes, condos and townhomes.
I am optimistic about 2019 with these caveats:
Sellers
Price your home competitively if you want to sell. Although prices are up, overall detached home sellers need to be savvy about how they compete with the other inventory.
Attached home sellers enjoy the most sought-after segment of the market but still need to be conservative in their desired asking price over the “last sale in the complex.”
Buyers
Don’t wait out for this market because lots of folks are thinking the price is going to fall off but, as evidenced by 2018, this is unlikely to be the case in any way. If you find the right home or investment make the offer today with the price you want to pay. If you see just the right thing but wait, you will likely lose it or pay the same.
Overall Impressions
Things to watch for in 2019 are interest rate hikes, changes to the mortgage stress test requirements and inventory levels. The Bank of Canada has been very dovish in it’s most recent announcements regarding raising interest rates, and it is unlikely we will see a rate hike during the first quarter of 2019. Watch for any changes to the mortgage stress test. If there is a softening of the stress test, we will see more buyers enter the market. Watch for inventory levels to rise considerably making the competition factor for sellers greater.
Peace of Mind
Now, more than ever, it is essential to have a professional in your corner whether you are a buyer or seller. The market is nuanced and highly detailed, so it’s worth investing in the peace of mind that the assistance of a professional REALTOR® delivers.
Contact Russ or Terri at Coast Lifestyles Network for real estate market intelligence.
Home sales depress across all types of property on the Sunshine Coast
/in Sunshine Coast Real Estate /by Ria QureshiSunshine Coast Real Estate Market Statistics for November 2018
Home sales depress across all types of property on the Sunshine Coast, however, the average price, year to date, is still up over 2017! Let’s break it down by property type.
Detached home sales
Detached home sales in November were down 45% in dollar volume to $21,110,000 and down 40% in unit sales to 30 homes sold. Inventory is up 41% to 333 available detached homes for sale. Year to date we see a decline of 23% in dollar volume to $363,000,000 and a 26% reduction in unit sales to 500. These figures have remained quite steady for the entire year. The average price for a home on the Sunshine Coast last month was $727,000 which is up 3% from last year. The closing ratio (amount of sales versus available inventory) for last month was 9%, dipping us back into a buyers market (an under 10% closing ratio).
Condos and townhome sales
Condos and townhome sales in November were down 63% in dollar volume to $3,344,000 and down 56% in unit sales to 7 condos/townhomes sold. Inventory is up 22% to 53 units available. Year to date we see a decline of 36% to $61,000,000 in dollar volume and a 59% reduction in unit sales to 132. The average price for an attached home on the Sunshine Coast is $462,000 which is a 6.5% increase over last year. The closing ratio (amount of sales versus available inventory) for last month was 13% which is considered a balanced market (10 – 15% closing ratio).
Land only sales
Land only sales in November were down 36% in dollar volume to $3,400,000 and down 33% in unit sales to 10 land only properties sold. Inventory is up 5% to 208 units available. Year to date we see a decline of 26% to $55,200,000 in dollar volume and a 22% reduction in unit sales to 147. The average price for land only is $375,000 which is down 5% from last year. The closing ratio (amount of sales versus available inventory) for last month was 4.8% leaving this section of the market firmly in the hands of buyers.
Property Values
We continue to see a decline in sales volume but no real decline in property values. Also, the year to date declines remains relatively steady month after month. Even those declines, when measured against a 10-year average, lead our team to believe that the market is adjusting to “normal” as it comes off an all-time high number of sales and low inventory experienced from 2015 to the end of 2017.
Bank of Canada rate increase in January 2019
With the loss of the car manufacturing plants in Ontario last month and the lowered production of oil in Alberta look to the Bank of Canada to NOT raise the prime in the early New Year and, possibly, the feds to revisit and soften the mortgage stress test.
For real market intelligence contact Russ, Ria and Terri from the Coast Lifestyles Network team!
New Listing! Lindal Cedar Home at 477 South Fletcher Road Gibsons
/in Sunshine Coast Real Estate /by Ria QureshiBeautiful Lindal Cedar Home in Gibsons Village
Mornings will never be the same while you’re living in this beautiful, southeast facing, Lindal Cedar Home! Boasting an ample living space for two upstairs and a studio suite downstairs, this is just the right downsize or pied-à-terre for you, right on the Sunshine Coast! Fully updated kitchen, rear lane and front road access, big views and it’s only a short stroll to the Gibsons Public Library, Arts Building, and Lower Gibsons’ fine restaurants.
More details>>>