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.
Looking back at 2022-A year of caution in the real estate market
/in Sunshine Coast Real Estate /by russqureshiSunshine Coast Real Estate Statistics December 2022 and Year End
After seeing record sales and prices during the pandemic, the Sunshine Coast housing market experienced a year of caution in 2022 due to rising borrowing costs fueled by the Bank of Canada’s ongoing battle with inflation. “The headline story in our market in 2022 was all about inflation and the Bank of Canada’s efforts to bring inflation back to target by rapidly raising the policy rate. This is a story we expect to continue to make headlines into 2023, as inflationary pressures remain persistent across Canada,” Andrew Lis, REBGV’s director of economics and data analytics, said. I concur…. let’s see how last month and 2022 as a whole breaks out:
Fully detached sales were down in dollar volume by 65% to $19,200,000, and unit sales were down 56% to 20 homes sold in December. Our available inventory is up 154% from last year to 186 homes. This means our sales success ratio is 11% putting the market in buyers’ hands.
Year to date, we are down in dollar volume by 34% to $572,800,000, and unit sales are down 39% to 502 homes sold in 2022.
The median sale price last year was $999,000.
Condos and Townhome sales were down in dollar volume by 53% to $2,750,000; unit sales were down 56% to 5 units sold in December. Our available inventory is 29% to 51 available attached homes. This means our sales success ratio is 10%, putting this market segment in buyers’ hands.
Year to date, we are down in dollar volume by 43% to $84,100,000, and unit sales were down 50% to 129 attached homes sold in 2022.
The median sale price for a condo or townhome was $605,000.
Land-only sales were at zero for December.
Year to date was down in dollar volume by 43% to $71,400,000, and unit sales were down by 51% to 114 properties sold in 2022. Our inventory for land only is up 59% to 288 available properties.
The median sale price for land-only properties was $449,000.
Many folks in the market to buy are continuing with the “wait and see” game…..unspent demand continues to build, and we’ll see how this plays out over the winter and spring months. Jon and I think we will need to see a catalyst(s) to bring confidence to buyers in the short term. For example, news stories and press releases say inflation is being held in check or is less than expected for a given month. Additionally, the Bank of Canada announced that they are holding rates steady. These factors will set a spring rush and allow us to return to a more familiar Sunshine Coast sales cycle for the foreseeable future.
Call Russ or Jon anytime for solid real estate advice backed by market intelligence!
Russ Qureshi, PREC 604-741-7119
Jon McRae, PREC 604-740-6263
Average home prices rise amid declining sales volume on the Sunshine Coast BC
/in Sunshine Coast Real Estate /by russqureshiSunshine Coast Real Estate Statistics for November 2022
All segments of the Sunshine Coast real estate market continue to decline for sales volume, inventory is fluctuating slightly and the average cost for a home continues to rise. Let’s see how it breaks out:
Fully detached home sales
Fully detached home sales were down in dollar volume from last year by 65% to $24,000,000 and units sales are down 58% to 23 homes sold. This is also down 16% in dollar volume and 15% in unit sales from last month. Inventory is up 142% over last year to 252 homes available. Inventory is down from last month by 9%. Our sales success ratio, the amount of sales versus the available inventory, is 9% putting the market firmly in the hands of buyers.
Year to date is pretty much as one might expect, down in dollar volume by 32% to $554,000,000 and down in unit sales by 37% to 482 homes sold so far in 2022. The average price for a home is up by 8% to $1,148,600. The median sale price, (the price the 12th of the 23 homes sold for), was $850,000.
Condos and Town Home sales
Condos and Town Home sales are down to some of the lowest levels I’ve seen in 20 years. Dollar volume for November was down 84% to $2,475,000 and unit sales are down 83% to 4 homes sold. Inventory is up by 39% to 61 available units. This means our sales success ratio is 6.5% putting this segment of the market in buyer’s hands.
Year to date we have seen a drop in dollar volume of 42% to $81,300,000 and units sales are down by 50% to 124 homes sold so far in 2022. The average price for an attached living option is up 12% to $652,000. The median sale price was $582,000.
Land only sales
Land only sales were down 85% in dollar volume last month to $1,125,000 and unit sales are down 85% to 2 lots sold. Inventory is down by 12% to 75 units…buyers…..where are you?
Year to date we are down 41% in dollar volume to $71,400,000 and down in unit sales by 49% to 114 lots sold in 2022. The average price for a piece of bare land so far this year is up 15% to $626,000.
Sellers take heart!
While we are seeing prices adjust down (keep in mind median prices rather than average prices) the drop is relatively minimal. Selling a home is, once again, a match making endeavor rather than a list and “manage the line-up” scenario. Matchmaking buyers and sellers is something at which that Jon and I excel!
Buyers should get their financial ducks in a row.
The Bank of Canada will meet one more time this year and likely raise the prime by another .25%. It is unlikely to go up beyond that in 2023 so, when you find the right place, make the offer that works for you. While prices remain “up there” you can still wrangle the terms & timing you want and need for your offer to work. There is a lot of pent up demand building…consider your timing as this demand will create another run on homes in the spring of 2023.
Things to watch out for in 2023:
For up-to-date market intelligence that advises beyond just the numbers contact Sunshine Coast REALTORs® Russ and Jon at Coast Lifestyles Network!
Call direct:
Russ 604-741-7119
Jon 604-740-6263
Navigating The Real Estate Market Calls For A Strategic Approach This Fall
/in Sunshine Coast Real Estate /by russqureshiSunshine Coast Real Estate Snapshot for October 2022
Detached Home Sales
Fully Detached Home Sales for the month of October 2022 were down 59% in dollar volume to $28,600,000 compared to last year at this time. Unit sales are down 57% to 27 homes sold. Compared to last month sales volume is down 8% and unit sales are down 25%. Our sales success ratio (the amount of sales versus available inventory) is at 10% putting the market in buyer’s hands. Our inventory has increased 145% over last year to 279 available homes for sale.
Year to date we are down 29% in dollar volume to $530,000,000 and unit sales are down 36% to 459 detached homes sold so far in 2022.
The price for a detached home is up 11% this year to $1,154,000.
Condo and Townhome Sales
Condo and Townhome Sales for the month of October were down 57% in dollar volume to $4,200,000 compared to last year at this time. Unit sales are down 70% to 6 units sold. Compared to last month we are, for all intents and purposes, dead even. Our sales success ratio is 12% putting the attached market on the cusp of a buyer’s market. Our inventory is up only 12% to 60 available attached homes.
Year to date we are down in dollar volume 38% to $79,000,000 and unit sales are down 47% to 120 condos and town homes sold so far in 2022.
The average price for a condo or town home is up 13% to $650,0000.
Land Only Sales
Land Only Sales for the month of October were down 65% to $1,350,000 and unit sales are down 80% to 2 lots sold. We are dead even with last months’ sales and our sales success ratio is approximately 1.5% making this segment a buyer’s market.
Year to date we are down in dollar volume by 38% to $70,250,000 and unit sales by 47% to 112 land only properties sold so far in 2022.
The average price for a lot on the coast is up 16% to $627,000.
Whether you are a buyer or seller this fall, there are some specific ways to set yourself up for success in this market. One way is to reach out to Russ or Jon for professional advice and a proven path to negotiating results that are in your best interests.
I was doing some math the other day and found out that a property would have to undergo a $96,0000 price drop before you could beat the interest rate increase over 2022. So, if I borrowed 500k in March, over a five year term, I would have paid $56,000 in interest. With today’s rate of 5.95% my interest accrued over the same five year term is now $140,000!!!! So, we need to see prices drop significantly to beat our interest rate rise…..Buyers, don’t wait for the market to go down when every indication is that rates will continue to rise…..
For market statistics call your realtor. For market intelligence call Russ and Jon!
Russ Qureshi
REALTOR®, Assoc. Broker
604-741-7119
Jon McRae
Personal Real Estate Corporation
604-740-6263
Home prices continue to rise despite market volume correction on the Sunshine Coast BC
/in Sunshine Coast Real Estate /by russqureshiSunshine Coast Real Estate Update for September 2022
All segments of the Sunshine Coast Real Estate Market are down for this September compared to last year. The fully detached homes and land-only segments of the market are up from last month, while condos and townhomes are a little less successful than last month.
Here’s how it breaks out:
Fully detached home sales were down 54% in dollar volume to $35,150,000, and unit sales were down 48% to 36 homes sold in September. Our inventory of available homes is up 105% from last year to 279 homes on the market. This means our sales success ratio (the number of sales versus the available inventory) is 13% putting the market in balanced territory. Year to date, we are down 26% to $501,000,000, and unit sales are down 34% to 432 homes sold in 2022 so far…The average price for a detached house on the Sunshine Coast in September was $1,160,000, up 12% from last year.
Condo and townhome sales were down in dollar volume by 52% to $4,350,000, and unit sales were down 60% to 6 units sold in September. Our inventory of available condos and townhomes is down slightly by 7% to 57 available units. This means our sales success ratio is 11%, putting this market segment in the Buyer’s hands. Year to date, sales are down in dollar volume by 46% to $74,700,000, and unit sales are down 44% to 114 condos or townhomes sold so far in 2022. In September, the average price for a condo or townhome on the Sunshine Coast was up 13% to $652,000.
Land-only sales were down 89% in dollar volume to $1,050,000, and unit sales were down 88% to 2 lots sold in September. Our inventory of land only is down 16% to 83 available lots. This means our sales success ratio is 2.5%, putting this market segment firmly in the Buyer’s hands. Year to date, sales are down 37% in dollar volume to $69,000,000, and unit sales are down 45% to 110 lots sold in 2022. The average land price only is up 14% to $625,000.
Interestingly, when we look at pre-pandemic numbers for September 2019, we see very close to the same activity as this year for the detached market and numbers significantly lower (this year in 2022) for both the attached and land-only markets. The market is correcting for volume in a big way but notice the average sale prices continue to climb…. Sellers should also consider how long they want to be on the market to “get their price.” Have a frank and honest discussion about pricing with your realtor because the market will draw a line along the “highly motivated vs just motivated.” Highly motivated sellers will lead the market with a value price/offering.
Buyers, when you find the right home, don’t wait to make an offer thinking you will save money with a lower purchase price. Any potential drops in price will be negated by higher interest rates. You are much better served to find the right place now, make an offer that works for you, and move forward. Prices do not seem to be dropping as one might think they should, so don’t be, figuratively, left in the cold.
For market stats call your realtor. For market intelligence call Russ Qureshi at Remax City Realty, 604-741-7119 or russ@coastlifestyles.ca
Homebuyers are jumping off the fence and into the market
/in Sunshine Coast Real Estate /by russqureshiSunshine Coast Sales Statistics for August 2022
Transactions have increased dramatically over last month. Especially in the second half of the month as we have seen folks jump off the fence and into the market! Let’s see how it breaks out:
Fully Detached home sales
Fully Detached home sales, while up 66% from last month, are still down 56% from last year to $31,500,000 in dollar volume and 29 units sold. The inventory increased 69% to 277 available homes for sale. The sales success ratio (the amount of sales compared to available inventory) is just over 10% putting the market in buyer’s hands for the second month in a row.
The average sale price for a home on the Sunshine Coast is up 14% over last year to $1,175,000.
Year to date we are down 22% in dollar volume to $466,000,000 and unit sales are down 32% to 396 homes sold so far in 2022.
Condo and Townhome sales
Condo and Townhome sales are up over last month significantly but still down over this month last year by 71% in dollar volume to $4,800,000 and unit sales were down 72% to 7 homes sold in August. The inventory is down 18% to 46 available homes for sale. This means the sales success ratio is 15% making the “attached” market a balanced one.
The average price for a condo or town home is up 11% this year to $640,000.
Year to date we are down in 35% dollar volume to $70,200,000 and down 43% in unit sales to 108 homes sold so far in 2022.
Land only sales
Land only sales are down 81% in dollar volume to $3,400,000 and down 80% in unit sales to 4 bare land properties sold in August. Inventory is down 24% to 84 available lots so our sales success ratio is 5% making this segment a buyers’ market.
The average price for a bare land is up 15% to $628,000.
Year to date we are down in dollar volume by 32% to $68,000,000 and unit sales are down by 41% to 108.
The market as a whole is still finding its feet, so to speak.
As expected we are up from last month as buyers come out of summer mode and are getting back at it. We are still down significantly from last year and will likely remain that way throughout the remainder of 2022. I foresee we will be in a consistent balanced market zone for the next while….stay tuned.
Russ’ pro tip for the fall
If you need to buy or sell for personal circumstance (rather than “playing the market”) then there is no need to wait. With a solid plan, you can move forward with confidence now.
For market stats call a Realtor, for market intelligence call Russ Qureshi at 604-741-7119.
New reality for home buyers in BC shapes real estate market this summer
/in Sunshine Coast Real Estate /by russqureshiHas 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 7th. 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
Real estate market adjusting to interest rates hike, increased inventory and relaxed buyer demand
/in Sunshine Coast Real Estate /by russqureshiSunshine Coast Real Estate Statistics for June, 2022
All segments of the residential market are down again this month. Fully detached homes suffered the shallowest dip with condos/town homes and land only seeing a very significant slowdown in action.
Let’s break it out and see how the market is adjusting to rising interest rates, increased inventory and relaxed demand from buyers.
Fully detached homes suffering from an interest rate hike from Bank of Canada
Fully detached homes dollar volume is down 11% to $56,500,000 and unit sales are down 18% to 50 homes sold last month. Inventory is up by 24% over last year to 245 available homes for sale. With the increase in inventory, our sales success ratio (the amount of sales versus available inventory) is 20%. This, despite it being much slower, is still an excellent sales success ratio and shows that we are on the cusp of a balanced market.
Year to date we are down 12% in dollar volume to $396,000,000 and down 25% in unit sales to 333 homes sold in 2022 so far.
The average cost of a detached home is up 17% from last year to $1,190,000.
Increased inventory in the condo and townhome segment
Condo and Townhome dollar volume is down 57% to $4,303,000 and unit sales are down 66% to 6 units sold. Inventory is down 21% to 44 available attached homes for sale. With the decrease in inventory for this segment of the market our sales success ratio is in balanced territory at 14%.
Year to date we are down 27% in dollar volume to $60,300,000 and unit sales are down 39% to 93.
The average cost of an attached dwelling is up 15% to $645,000.
Land only properties hit the hardest
Land only property sales are the worst hit with dollar volume down by 73% to $1,700,000 and unit sales own 68% to 5 empty lots sold in June. Inventory is down 39% to 74 available lots making our sales success ratio for this segment of the market 7%….a buyer’s market by any measure.
Year to date we are down in dollar volume by 18% to $60,750,000 and unit sales are down by 35% to 98 lots sold in 2022 so far.
The average price for land only property is up 25% to $620,000.
Home Sellers must be aggressive to attract attention
Home Sellers should make sure your home is “show ready”, including curb appeal, with no deferred maintenance issues for buyers. After coming out of a two year+ high value, seller’s, market you should also be prepared to price your home aggressively in comparison to your local competition.
Home Buyers interest rate increase eating away at market-slide gains
Home Buyers should lock in your best rate for 90 – 120 days today. We should expect another big jump in the prime rate when the Bank of Canada meets again on July 13th. For those of you playing the waiting game hoping to see less expensive prices…think twice… Even a .5% hike in the prime can result in loosing (over the amortization period) any amounts you might save waiting/hoping for the market to slide down. Instead, lock in your best rate and negotiate the deal you want today. This would make for a much better chance at a positive outcome.
For market information call your realtor. For market intelligence call Russ!
Russ Qureshi
Coast Lifestyles Network – ReMax City Realty
604.741.7119
russ@coastlifestyles.ca
Prime rate of Canada and consumer protection in BC produce cooling effect on the real estate market
/in Sunshine Coast Real Estate /by russqureshiSunshine 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
Sunshine Coast property market on a wild ride this spring
/in Sunshine Coast Real Estate /by russqureshiSunshine Coast Real Estate Statistics for April 2022
All segments of the market, with the exception of Land Only properties, have realized a small downturn in unit sales but are still seeing gains over last year in terms of dollar volume. We are at an “in between” stage right now with some properties continuing to enjoy the “wild ride” of heavy attention – then multiple offers, and some properties are being ignored by the market entirely… Lets see how it breaks out:
Detached residential sales are up in dollar volume by 8% to $94,750,000 yet down in unit sales by 10% to 72 homes sold compared to April last year. Our available inventory, while up overall, is still down 10% from this time last year to 153 detached homes available. This means our sales success ratio is 47%. This sales success ratio is down 5% from last month but still astronomical when one understands it is considered a seller’s market at a ratio above 20%. Year to date we see that dollar volume is down 9% to $273,325,000 and unit sales are down 23% to 228 homes sold. Despite the slackening demand the average home price is still up 19% over last year to $1,199,000.
Condo and townhome sales are down in dollar volume by 47% to $8,781,000 and down in unit sales by 56% to 13 homes sold in April. The available inventory is dead even from last month at 50 units. Therefore, our sales success ratio is 26%….this is a marked drop from last month where the sales success ratio was 64%!!! Yet, it is still a sellers’ market. Year to date dollar volume is down 23% to $44,491,000 and unit sales are down 34% to 67 units sold so far this year. As with detached homes, despite the slackening demand the average condo/town home price is up 19% to $660,000.
Land only sales are a bright spot for sales this month with dollar volume up 47% over last month to $22,050,000 and unit sales are up 12% to 28 units sold. This weird discrepancy is accounted for by the sale of a 6 acre piece in Sechelt for 8.7 million. Available inventory is way, way down by 55% to 57 available lots. Therefore, the sales success ratio for this segment of the market is 49%…! Year to date we see dollar volume is up 3% to $54,000,000 and unit sales are down 20% to 84 units sold. The average price of a piece of bare land, although skewed somewhat by last month’s high value sale previously mentioned, is up 30% to $642,000.
Overall, the statistics show us that the market is continuing the trend of higher prices and lack of inventory. Thrown into the mix is a pronounced slackening of demand from buyers. So, we start seeing several months in a row now where dollar volume continues to set records while unit volume continues to decrease slightly. I have certainly seen a slowdown in demand through the lens of my own business. A 50 basis point jump in the overnight rate (with many more to come it seems), buyer fatigue and, it would seem, a general lack of urgency on the part of buyers is starting to play a significant role. Add to this the recently legislated “cooling off period” enacted by the Provincial Government (as yet without specifics and, IMHO, without merit) and we will continue to see a downturn in unit sales…..
As strange and unique as this market is and has been (and no doubt will continue to be) I am keeping my eyes and ears open so I can advise you properly when you need to buy or sell. For market stats call your realtor, for market intelligence call Russ Qureshi at 604-741-7119 or email at russ@coastlifestyles.ca
Get ready for a cooling-off period for home sales in BC
/in Sunshine Coast Real Estate /by russqureshiAll 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.