Economic Fundamentals Of Housing Prices In 2021 On The Sunshine Coast BC

The Sunshine Coast market continues to break all kinds of records! Did you know that we have exceeded 2019’s total dollar volume by more than $250,000,000?  Yes, you read that correctly, two hundred and fifty million dollars! And, we still have December to go….lets see how this breaks out:

Detached home sales

Detached home sales surpassed last November’s dollar volume by 114% to attain a total of $74,100,000.  Unit sales were up 76% to a total of 83 units sold.  Available inventory is down 42% to 174 homes on the market.  This means our sales success ratio is 52%!!! This is the number of sales versus the available inventory.  Anything over 20% is considered a sellers’ market.  I have been selling real estate on the Sunshine Coast for the past 18 years, and I have never seen the sales success ratio this high!

Year to date, we are ahead in dollar volume by 72% to a total of $581,900,000 and ahead in unit sales by 51% to 710 units sold so far in 2020.

The average home price has risen 14% this year to $820,000.

Condo and townhome sales

Condo and townhome sales are also way ahead. Dollar volume for November was up 109% to $12,350,000, and unit sales are up 104% to 23 units sold.  Available inventory is down 36% to 82 units on the market.  This means our sales success ratio is 28%.  Not quite the same astronomical rise as the detached market, but puts this segment of the market in the seller’s hands.

Year to date dollar volume is up 26% to $93,500,000 (already surpassing the entire 2019 year by more than $20,000,00), and unit sales are up 29% to 186 units sold.

The average attached home price is actually down 5% to $497,750, but this is due to the high-value presales that occurred with several projects in 2019.

Land only sales

Land only sales are up 65% in dollar volume to $8,200,000, and unit sales are up 50% to 24 units sold in November.  Available inventory is down 22% to 171 lots on the market.  This puts our sales success ratio at 14%, showing we are in a balanced market for land sales.

Year to date, we have seen a 49% increase in dollar volume to $53,000,000, and unit sales increase by 63% to 155.

The average price for bare land this year is down 8% to $341,000.

Economic fundamentals of housing prices in 2021

Economic fundamentals are in play here as we move forward.  Lower and decreasing inventory + higher and higher demand (coupled with the fact the second wave of Covid 19 isolation protocols create more pent up demand) + record low interest rates means we are set to see another year of record-breaking prices and, depending on available inventory, unit sales.

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