We are still in a strong seller’s market despite the slow down in dollar volume and homes sold.

One might say, if the trend continues, we will be heading toward more normalized conditions over the next months.

Let’s see how last month breaks out:

 

Fully detached home sales are down in dollar volume, from last year at this time, by 2% to $77,500,000 and down in unit sales by 23% to 70 total detached homes sold in September. This is up over last month by approximately $6,000,000 in dollar volume and 3 home sales….  Inventory is down to 136 available homes making the sales success ratio (the number of sales versus the available inventory) 51.5%.  When we consider that a sales success ratio of 20% or more constitutes a “seller’s market,” we can see that statistically, sellers are still very much in control.

Year to date, we are still way ahead of last year. We are up in dollar volume by 62% to $680,500,000, and unit sales by 26% to 659 units sold so far in 2021.

The average price for a home on the Sunshine Coast is up 29% over this time last year to $1,032,000.

 

Condos and townhome sales are down in dollar volume by 47.5% to $8,300,000 and down by 54% in unit sales to 15 attached homes sold in September.  This is down in dollar volume compared to last month by 49.5% and down 34% in unit sales. Inventory is down to 61 available condos and townhomes, making the sales success ratio (the number of sales versus the available inventory) 24.5%, keeping this market segment in the hands of sellers.

Year to date, we are still way ahead of last year. Dollar volume is up by 46% to $117,100,000, and unit sales are up by 37% to 205 units sold so far in 2021.

The average price of an attached home on the Sunshine Coast is up 13% to $570,000.

 

Land only sales are up 23% to $10,100,000, and unit sales are down 10% to 18 land only properties sold in September. This is down in dollar volume compared to last month by 45% and down in unit sales by 10%. Inventory is down to 99 available land-only properties, making the sales success ratio a little over 18%, showing this market segment to be balanced.

Year to date, we are way ahead of last year.  Dollar volume is up by 206% to $111,100,000, and unit sales are up by 87% to 203 bare land properties sold in 2021 so far.

The average price of a piece of land is up 62% to $547,000.

Takeaway

I feel a change coming on! Considering the market has done nothing but rise for the last 18 months, a settling of prices is considered by many to be a good thing! The biggest “wildcard” will continue to be the lack of available inventory.  With so little inventory available, even minimal demand will maintain prices at or very close to current levels.

 

For market information call your realtor. For market intelligence call Russ Qureshi at 604-741-7119 or email russ@coastlifestyles.ca

July was an interesting month for Sunshine Coast real estate sales.  We see different results depending on market segment (detached, condos, land only).  This slightly reduced demand can be attributed to the summer months and most buyers deferring their purchase decision to August or September.  Let’s see how it breaks out across the three residential property types:

 

Fully Detached Sales are down in dollar volume by 6% to $80,300,000, and unit sales are down 23% to 77 units sold in July.  However, these figures are up by 20% over last month, showing that the recent pause in activity in the detached market was short-lived.

For July, the sales success ratio, the number of sales versus the available inventory, was 42%, keeping the market in the seller’s hands.

Year to date, we are still way ahead of last year’s totals.  Dollar volume for 2021 is up 111% to $531,200,000. Unit sales are up 60% to 522 homes sold so far this year.

The average price for a home on the Sunshine Coast remains relatively unchanged over the last three months at $1,020,000.

 

Townhome and Condo Sales are up, ever so slightly at 3.5%, in dollar volume to $8,350,000 and unit sales are down 29% to 12 units sold last month.  This continues a downward trend from last month.  July’s figures are down 16.5% in dollar volume and 33% in unit sales from June’s results.

The sales success ratio, the number of sales versus the available inventory, for July was 18% making the attached market a balanced one going into August.

Year to date, we are still way ahead in dollar volume by 284% to $92,305,000, and unit sales by 246% to 165 units sold so far this year.

The average price for a condo or townhome on the Sunshine Coast is now $560,000.

 

Land only sales are up 33% in dollar volume to $8,575,000 and down 44% in unit sales to 14 lots sold.  Compared to last month, it’s a mixed bag.  We are up in dollar volume by 24% and down in unit sales by 12.5%. The results are skewed by a 61-hectare sale of Ruby Lake (partial waterfront) for just over $3,000,000.

The sales success ratio, the number of sales versus the available inventory, for July was 11.5% making this segment of the market a buyers’ one.

Year to date sees us ahead by 320% in dollar volume to $82,950,000 and unit sales by 153% to 165 units sold in 2021 so far.

The average price for land-only is $503,000.

 

The Sunshine Coast continues to see record prices and sales volume across all segments of the market. I have a sense this should ramp up even more over the next 60 days.  With housing supply so low and demand continuing to be significant, can the Sunshine Coast housing market do anything but rise?

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