wild ride horse and dog

Real estate an interesting ride in 2023 plus the outlook for 2024

Sunshine Coast Real Estate Sales Summary for December 2023 and YTD

The year has been quite an interesting ride for real estate on the Sunshine Coast (and everywhere in Canada!).  Increasing inventory, buyer reluctance due to interest rate volatility and the huge increases in inflation resulted in a year of steady yet subdued sales across all segments of the market.  Let’s see how this breaks out:

Fully detached sales were up 3% in dollar volume last month to $19,750,000 and up 10% in unit sales to 22 homes sold.  Our inventory is up 44% to 268 available, detached homes for sale. This means our sales success ratio was 8% making the market, statistically speaking, a buyers market. 2023 as a whole saw dollar volume decrease by 25% to $426,000,000 and unit sales decrease by 23% to 383 homes sold.

The average price in 2023 was $1,100,000 and the median price (the home that sold in the middle) was $950,000.

Condo and Town Home sales were down 2% in dollar volume last month to $2,700,000 and unit sales were equal with 5 homes sold.  Our inventory remains equal to last year at 51 available homes for sale.  This means our sales success ratio is just under 10% making the market a buyer’s one.  2023 as a whole saw a 7.5% decrease in dollar volume to $77,700,000 and a decrease in unit sales by a single home to 128 condos or town homes sold.

The average price in 2023 was $603,000 with the median price being $585,000.

Land only sales was funny for the month of December. We recorded no sales in December 2022 and this year we recorded $936,000 in dollar volume which translates to 2 lots sold.  The available inventory is up 92% to 98 bare land properties available.  2023 saw a decrease in dollar volume of 46% to $38,150,000 and a 57% decrease in unit sales to 48. I am happy to report that Jon and I were responsible for 8 of those sales in 2023…therefore a 16% market share on sales of bare land property.

The average price for land last year was $794,000 and the median price was $594,000. 

Looking forward to 2024

Looking forward to 2024, Jon and my thoughts are that we will see a rush of inventory come to market (as usual) over the spring months.  We are also bullish on the idea that the Bank of Canada will be lowering rates over the late spring and early summer after holding over the winter.  The holds on activity over winter will prime the spring market and we should start seeing competitive offers become common place as we work through the inventory.

Home Sellers

Sellers, this means you still need to do the work of getting the home show ready. Get onto that deferred maintenance if you are selling this year.

Home Buyers

Buyers, even in a speedy market, are VERY reluctant to buy something that is not move-in ready. Buyers…your best opportunity to get a deal will be over the next 60 days.

Watch for good mortgage rates

Watch for good mortgage rates. The BOC overnight policy rate may be at 5 % (meaning lender prime is 7.2%) but we are seeing some good competition on lender mortgage rates with some offering as low as 4.89% (as of the writing of this report). Don’t wait.

For market intelligence call Russ and Jon at Coast Lifestyles Network!