January continue to show extremes in the real estate market on the Sunshine Coast BC, inventory slowdown being a key driver
The most notable factor driving the present market is, you guessed it, the lack of inventory. This continues to be the variable that is becoming more extreme every month.
Let’s see how this is playing out across the residential market on the Sunshine Coast.
Detached home sales
The month of January reached a total dollar volume of $25,455,000 which is up from this month last year by 54%!!
Available listings dropped 9% from this time last year to 191 available detached homes across the entire Sunshine Coast.
Total detached sales went up 12% to 36 units sold. This means the closing ratio (sales versus available listings) is 19% and firmly in a seller’s market.
The average price this past month is also up over last year by 37% at $707,000. Note: this does not mean the average home is selling for more than $700,000, it simply means the average price for homes sold in January was $707,000. When we look at the average home price over the entire year of 2017 it is $652,000.
Attached home sales
The month of January reached a total dollar volume of $4,771,700 which is up from last year nominally by 6.5%.
Available listings are the factor in this surprising small jump in total sales. We are down 40% in available units so far this year. The minimal jump in gross dollar volume is more a condition of the lack of available attached housing rather than a lack of interest.
The total available attached listings on the Sunshine Coast now sits at 32 and the past month’s closing ratio is 34%, hugely in a seller’s market.
The average price of an attached home for January was $432,500. The average price for an attached home in 2017 was $435,000 so we are down a wee bit.
Land only sales
The month of January reached a total dollar volume of $5,339,000 which is down 48% from last year!
Available listings are down 21% to 176 lots on market. Units sold for January are 14 compared to last year’s 15.
The closing ration on bare land is 8% meaning it is a buyer’s market. The average price of a lot on the Sunshine Coast in January was $381,000.
What does this mean for home sellers and buyers?
Whether you are selling your detached home or condo/town home you will do well. Make sure you have a plan for what to do after your sale!
Sales occur in short time frame so having a plan of where you are going and how you are going to get there brings a clarity and peace of mind. This will make the process much more simple and enjoyable for you.
If you are planning on improvements prior to listing then contact your REALTOR® and let them show you what will bring you the most bang for your buck and what you should not, or rather need not, do to sell.
Get pre-approved and be ready to buy into the market now.
The Sunshine Coast is one of the last “affordable” places proximal to Vancouver.
If you are buying a detached home, being ready financially AND with “your story” is important. What is your story? How will it help you acquire the home other buyers are competing on? In a competitive offer situation having a compelling narrative may be just the variable that gets the seller to pay attention to your offer, along with offering a significant financial incentive and minimal conditions of purchase.
If you are down-sizing, and become both a Seller and Buyer at the same time, keep in mind many people in the same place. Be prepared to pay more than you think you should for that perfect condo or town home.
I am often asked “Are we hitting a wall for price on the Coast Russ?” “Have prices topped out?” “How can people afford to pay this much?!”
All good questions and all questions that should be posed and answered in a wider perspective.
In the past we have often compared our region to that of Squamish and the Fraser Valley communities of Abbottsford and Maple Ridge. Up to a few years ago our average home price closely mirrored those communities average home price. Today the average price of a home in Squamish is $958,000. Abbottsford is $809,000. Maple Ridge is $862,000.
While the ferry is a factor for many buyers I believe, the Sunshine Coast has plenty of room to move up on price and will do so over the next few years.
If you would like a private consultation to discuss your real estate situation I am happy to oblige both with an accurate valuation and strategies for achieving your real estate goals.
Timing, pricing and location are the biggest factors in how quickly a property will sell in a busy market like the Sunshine Coast BC.
Speak with a REALTOR® licensed in your area to gain insights into current real estate market activity in your neighbourhood.
For all your real estate buying, selling and investment needs on the Sunshine Coast BC contact Russ Qureshi and his team at https://coastlifestyles.ca