Home-buying frenzy continues on the Sunshine Coast BC
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
