MassonGet ready for a cooling-off period for home sales in BC
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.
