Home prices continue to rise despite market volume correction on the Sunshine Coast BC

Sunshine Coast Real Estate Update for September 2022

All segments of the Sunshine Coast Real Estate Market are down for this September compared to last year. The fully detached homes and land-only segments of the market are up from last month, while condos and townhomes are a little less successful than last month.

Here’s how it breaks out:

Fully detached home sales were down 54% in dollar volume to $35,150,000, and unit sales were down 48% to 36 homes sold in September. Our inventory of available homes is up 105% from last year to 279 homes on the market. This means our sales success ratio (the number of sales versus the available inventory) is 13% putting the market in balanced territory. Year to date, we are down 26% to $501,000,000, and unit sales are down 34% to 432 homes sold in 2022 so far…The average price for a detached house on the Sunshine Coast in September was $1,160,000, up 12% from last year.

Condo and townhome sales were down in dollar volume by 52% to $4,350,000, and unit sales were down 60% to 6 units sold in September. Our inventory of available condos and townhomes is down slightly by 7% to 57 available units. This means our sales success ratio is 11%, putting this market segment in the Buyer’s hands. Year to date, sales are down in dollar volume by 46% to $74,700,000, and unit sales are down 44% to 114 condos or townhomes sold so far in 2022. In September, the average price for a condo or townhome on the Sunshine Coast was up 13% to $652,000.

Land-only sales were down 89% in dollar volume to $1,050,000, and unit sales were down 88% to 2 lots sold in September. Our inventory of land only is down 16% to 83 available lots. This means our sales success ratio is 2.5%, putting this market segment firmly in the Buyer’s hands. Year to date, sales are down 37% in dollar volume to $69,000,000, and unit sales are down 45% to 110 lots sold in 2022. The average land price only is up 14% to $625,000.

Interestingly, when we look at pre-pandemic numbers for September 2019, we see very close to the same activity as this year for the detached market and numbers significantly lower (this year in 2022) for both the attached and land-only markets. The market is correcting for volume in a big way but notice the average sale prices continue to climb…. Sellers should also consider how long they want to be on the market to “get their price.” Have a frank and honest discussion about pricing with your realtor because the market will draw a line along the “highly motivated vs just motivated.” Highly motivated sellers will lead the market with a value price/offering.

Buyers, when you find the right home, don’t wait to make an offer thinking you will save money with a lower purchase price. Any potential drops in price will be negated by higher interest rates. You are much better served to find the right place now, make an offer that works for you, and move forward. Prices do not seem to be dropping as one might think they should, so don’t be, figuratively, left in the cold.

For market stats call your realtor. For market intelligence call Russ Qureshi at Remax City Realty, 604-741-7119 or russ@coastlifestyles.ca