May 31, 2021

Is the real estate market on the Sunshine Coast pausing? The sales statistics say no way….

We continue to see a high volume of transactions across all property types on the Sunshine Coast. In speaking with my colleagues, we are noticing a marked slowdown in calls of interest on our listings and that properties are generally taking longer to sell. The stats have yet to coincide with those observations, but the general sense is: the market is slowly changing. Let’s see how it breaks out:

Fully detached home sales

Fully detached home sales increased in dollar volume by 355% to $86,065,000 and unit sales by 203% to 85 units sold in May. Active listings are up by 6 over last month to a total of 182. This is down 41% compared to last year. The sales success ratio (the number of sales versus the available inventory) is 45% keeping the market in the seller’s hands.

Year to date, we are up in dollar volume by 259% to $387,000,000, and unit sales by 156% to 384 units sold so far in 2021.

The average price for a home on the Sunshine Coast is $1,007,000.

Condo and townhome sales

Condo and townhome sales increased in dollar volume by 172% to $16,050,000 and unit sales by 1000% to 30 units sold in May. Active listings are up by 1 unit to 51 available condos or townhomes for sale. This is down by more than 50% from the same time last year and puts the sales success ratio for this segment of the market at 60%…firmly in the hands of the seller.

Year to date, we have seen a 415% increase in sales dollar volume to $74,000,000 and an increase in unit sales by 365% to 135 units sold in 2021.

The average price for a condo or townhome is $547,500.

Land only sales

Land only sales have increased in dollar volume by 800% to $15,850,000 and unit sales by 314% to 29 units sold in May. Active listings decreased by 6 units to 123 available lots/land only units available. This is down 45% from last year. This means the sales success ratio for this segment of the market is 24%!!! Unheard of territory for land only.

Year-to-date dollar volume is up 742% to 67,850,000, and unit sales are up 462% to 135 units sold so far in 2021.

The average price for land-only is $502,000.

Home Sellers: offer a home that is move-in ready

As has been the cemented trend over the previous 12 months, make sure your home shows well. Buyers expect a move-in ready home when they’re paying these recent prices…so give them move-in ready and save yourself time on the market.

Home Buyers: get preapproved

As of June 1st, the Federal Government has increased the stress test for insured and uninsured mortgages, making it even more difficult for those most benefited by entering the market. If you have all or mostly cash, you will be fine. Be as liquid (financially) as possible and be prepared to act quickly on the home you love.

COVID19 long view

With the country on the way to getting through the pandemic, we will see much of the built-up cash reserves (accumulated over the recent months by folks not travelling, going out or finding ways to easily spend) get spent. It won’t all be on real estate but be prepared for a relatively calm summer and then another wild ride this fall.

For the tenth month in a row, we have seen continued increases in property sales and prices on the Sunshine Coast, BC.

I’ve personally noticed this past week that I see fewer calls than previous weeks and fewer viewing requests, too….with that little caveat aside, the volume of contact requests is still way above usual.  Let’s see how this breaks out:

 

Detached home sales in March increased by 242% in dollar volume over last year to $106,175,000. Unit sales increased by 140% to 106 units sold.  The amount of available fully detached homes sits at 149….47% less than last year.  With that in mind, we see our sales success ratio (the number of sales versus the available inventory) is as high as I’ve ever seen it at 71%….golly, we consider it a sellers’ market when this figure is at 20%!!! The year-to-date numbers paint a similar picture with an increase of dollar volume by 212% to $213,300,000 and unit sales increasing by 128% to 219 homes sold so far this year.  The average price for a home has increased by 37% to $975,000 so far this year.

 

Condo and Townhome sales in March increased by 223% to $14,100,000, and unit sales increased by 192% to 27 units sold.  The amount of condos and townhomes for sale is 52….66% less than last year. With that in mind, we see our sales success ratio (the number of sales versus the available inventory) is 52%…truly a mind-boggling ratio in my experience. The year-to-date numbers are up 153% in dollar volume to $18,500,000, and unit sales are up 142% to 34 sold so far this year. The average price for a condo or townhome has increased by 10% to $550,000.

 

Land only sales in March increased by…wait for it….898% in dollar volume to $19,500,000 and unit sales by 337% to 35 lots sold in March.  The available inventory for land only is down 37% to 131 lots available.  With that in mind, we see our sales success ratio (the number of sales versus the available inventory) is 26%. This puts the land-only category into a sellers’ market again this month!  The year-to-date numbers for dollar volume are up 489% to $37,100,000 and up for unit sales by 376% to 81 lots sold this year.  The average price for land only is up 23% to $458,000.

 

How long can this rise last?

 

One might ask the question, at this point, how long can this rise last? Where is the point where folks simply cannot afford to buy at home? Of course, that is relative, and many individuals have already realized that the market has “left them behind.”  Some lucky buyers can still go out and get what they want, and, let’s face it, compared to many of the Lower Mainland areas, we still offer a deal on price here on the Sunshine Coast.  We also have to look at the low inventory as a major culprit for rising prices.

 

The coming months should see (as we have seen this cycle consistently in the past) an increase in inventory, and this should have a cooling effect on rising prices.  I don’t think we will see prices reduce in any significant way, but I don’t think we’ll see the same rapid rise in values that we’ve experienced for the last while.

 

Home Buyers – take heart! If you’ve been struggling in this market, don’t worry. Remain focused and prepared to go after the one you want.  Be pre-approved financially and, if there is more than one decision-maker, make sure you are on the same page for what’s important to you for a purchase because you will (in all likelihood) pay more for something that doesn’t quite check all the boxes.

 

Home Sellers – indeed, you are in the driver’s seat.  Make sure the home is ready to sell and move into…complete deferred maintenance and make your home “show ready.” Buyers just want to move in for the most part…they don’t want to have to take on your deferred maintenance and repairs…you will sell regardless, but the difference when preparing your home for the market versus not preparing can be measured in the tens of thousands of dollars range.

 

 

The home-buying frenzy continues, hand in hand with a severe shortage of inventory, here on the Sunshine Coast through the second month of 2021.

Let’s see how things look:

 

Detached home sales

 

Detached home sales show an increase in dollar volume by 235%, or $68,100,000, over last year in February. Unit sales are up by 129% to 71 homes sold.

 

Available inventory is down by 50% to 133 available homes for sale.  This means our sales success ratio (the number of sales versus the available inventory) is 53%…. which is previously unheard of seller’s market.

 

The year-to-date totals are up 187% in dollar volume to $107,150,000 and up 117% in unit sales to 113 homes sold this year so far.

 

The average home price has vaulted up by 32% to $950,000.

Condos and Townhome sales

 

Condos and Townhome sales show an increase in dollar volume of 33% to $18,000,000 and an increase in unit sales by 300% to 30 homes sold.

 

Available inventory is down 63% to 49 available homes for sale.  This means the sales success ratio is 61%…putting the condo and townhome market in the seller’s hands again.

 

Year-to-date we see an increase in dollar volume by 107% to $12,200,000 and an increase in unit sales by 90% to 21 homes sold this year.

 

The average price for a condo or townhome has increased by 12% to $567,500.

Land only sales

 

Land only sales show an increase in dollar volume by 180%, or $10,800,000, over last year.  Unit sales are up 300% to 24 units sold.

 

Available inventory is down by 37% to 131 properties for sale.  This means the sales success ratio (amount of sales versus available inventory) is 18%.  This is even more of a seller’s market for land than last month.

 

The year-to-date totals paint the same kind of picture. We are up 305% in dollar volume to $17,600,000 and up 411% in unit sales to 46 lots sold in 2021.

 

Counter-intuitively, the average price for bare land has dropped by 20% this year.  This anomaly can be accounted for by some high dollar sales last year compared to the volume of sales this year.

 

So, what to do and how to strategize a plan of action during the home-buying frenzy?

 

Home Sellers should consider all variables in the transaction

 

If you’re a seller, CALL ME and we will strategize your path through this market and help you make the right decisions for YOU! Dollar value is one thing but there are other variables that can, and do, bring value to the transaction and the overall home selling experience.

Home Buyers be ready to compete with multiple offers 

 

Buyers, if you can access cash then, do so. I’m seeing “average priced” homes in the 700-800k price range sell under multiple offers for tens and, in some cases hundreds, of thousands of dollars more than asking with little or no due diligence contingencies.

 

Another option is to keep to a holding pattern and hope things balance out (as they always do) sooner than later.  That said, even a trifecta of cooling variables (think increased lending rates, an influx of inventory, and decreased demand) will only result in a small drop in the huge market gain we’ve seen over the past 12 months.

 

Coast Lifestyles and Russ Qureshi offer more than just market information. If you want market intelligence and a sound real estate buying, selling and investment strategy reach out to Russ at 604-741-7119 or email russ@coastlifestyles.ca

 

 

Sunshine Coast Sales Statistics December 2020 and Year-End

 

It has been a crazy real estate ride on the Sunshine Coast BC for 2020, and we ended the year on another high note! Despite the Covid 19 Pandemic….or maybe because of it…the Sunshine Coast was one of the busiest regions in the province for real estate sales and market gains/increases last year.  Let’s see how it breaks out:

Fully detached home sales

Fully detached sales increased by 174% in December to $61,500,000 in dollar volume! Unit sales follow suit with an increase of 96% to 63 units sold last month.  The available inventory is down by 47% to 125 available properties.  Despite the traditionally slow time of year, this is a marked decrease in available inventory.  Our sales success ratio (the number of sales versus the available inventory) is just over 50%.  It’s a seller’s market when this ratio is over 20%.

Year to date, we have surpassed 2019’s totals by a whopping 79% in dollar volume to $643,500,000 and by 53% in unit sales to 773.

The average price for a home on the Sunshine Coast increased by 16% in 2020 to $832,000.

Condo and townhome sales

Condo and townhome sales increased by 229% to $8,700,000 in dollar volume.  Unit sales follow suit with an increase of 257% to 18 units sold last month. The available inventory is down by 56% to 67 available condos or townhomes.  This means our sales success ratio (the number of sales versus the available inventory) is 27%.  While not as “mind-blowing” as the detached ratio, it still puts this segment of the market in the seller’s hands.

Year to date, we have seen an increase of 39% to $101,250,000 in dollar volume and an increase in unit sales by 68% to 204. The average price for a condo or townhome on the Sunshine Coast actually decreased by 5% to $496,000.  This counter-intuitive decrease is due to the high price presales that occurred in 2019 with several luxury developments here on the Coast.

Land only sales

Land only sales also enjoyed an increase of 124% in dollar volume to $9,100,000 and 425% in unit sales to 21 lots sold in December.  Available inventory is down 29% to 149 land only properties. This means the sales success ratio is 20%…..on the cusp of a seller’s market!

Year to date, there was an increase of 57% to $62,000,000 in dollar volume and an increase of 77% in units sold to 176.

The average sale price of a lot decreased by 11% to $352,000.

A crazy year

As a result of a pandemic, we have seen a crazy year in all aspects of life and on the local real estate market.  My intuition tells me we should expect to see a continued absence of inventory.  That, coupled with the pent up demand building over this second lockdown, will mean even higher prices and more buyer competition during the early months of 2021.

 

Whether buying or selling, you can move forward confidently with a strategy to help you succeed. I encourage you to reach out for a consultation on what kind of opportunities you can expect from the market this year.

More than just market statistics–contact Russ for your complimentary personalized market intelligence report.

Call Russ direct at 604-741-7119

Email russ@coastlifestyles.ca