For the tenth month in a row, we have seen continued increases in property sales and prices on the Sunshine Coast, BC.
I’ve personally noticed this past week that I see fewer calls than previous weeks and fewer viewing requests, too….with that little caveat aside, the volume of contact requests is still way above usual. Let’s see how this breaks out:
Detached home sales in March increased by 242% in dollar volume over last year to $106,175,000. Unit sales increased by 140% to 106 units sold. The amount of available fully detached homes sits at 149….47% less than last year. With that in mind, we see our sales success ratio (the number of sales versus the available inventory) is as high as I’ve ever seen it at 71%….golly, we consider it a sellers’ market when this figure is at 20%!!! The year-to-date numbers paint a similar picture with an increase of dollar volume by 212% to $213,300,000 and unit sales increasing by 128% to 219 homes sold so far this year. The average price for a home has increased by 37% to $975,000 so far this year.
Condo and Townhome sales in March increased by 223% to $14,100,000, and unit sales increased by 192% to 27 units sold. The amount of condos and townhomes for sale is 52….66% less than last year. With that in mind, we see our sales success ratio (the number of sales versus the available inventory) is 52%…truly a mind-boggling ratio in my experience. The year-to-date numbers are up 153% in dollar volume to $18,500,000, and unit sales are up 142% to 34 sold so far this year. The average price for a condo or townhome has increased by 10% to $550,000.
Land only sales in March increased by…wait for it….898% in dollar volume to $19,500,000 and unit sales by 337% to 35 lots sold in March. The available inventory for land only is down 37% to 131 lots available. With that in mind, we see our sales success ratio (the number of sales versus the available inventory) is 26%. This puts the land-only category into a sellers’ market again this month! The year-to-date numbers for dollar volume are up 489% to $37,100,000 and up for unit sales by 376% to 81 lots sold this year. The average price for land only is up 23% to $458,000.
How long can this rise last?
One might ask the question, at this point, how long can this rise last? Where is the point where folks simply cannot afford to buy at home? Of course, that is relative, and many individuals have already realized that the market has “left them behind.” Some lucky buyers can still go out and get what they want, and, let’s face it, compared to many of the Lower Mainland areas, we still offer a deal on price here on the Sunshine Coast. We also have to look at the low inventory as a major culprit for rising prices.
The coming months should see (as we have seen this cycle consistently in the past) an increase in inventory, and this should have a cooling effect on rising prices. I don’t think we will see prices reduce in any significant way, but I don’t think we’ll see the same rapid rise in values that we’ve experienced for the last while.
Home Buyers – take heart! If you’ve been struggling in this market, don’t worry. Remain focused and prepared to go after the one you want. Be pre-approved financially and, if there is more than one decision-maker, make sure you are on the same page for what’s important to you for a purchase because you will (in all likelihood) pay more for something that doesn’t quite check all the boxes.
Home Sellers – indeed, you are in the driver’s seat. Make sure the home is ready to sell and move into…complete deferred maintenance and make your home “show ready.” Buyers just want to move in for the most part…they don’t want to have to take on your deferred maintenance and repairs…you will sell regardless, but the difference when preparing your home for the market versus not preparing can be measured in the tens of thousands of dollars range.