Real estate market adjusting to interest rates hike, increased inventory and relaxed buyer demand
Sunshine Coast Real Estate Statistics for June, 2022
All segments of the residential market are down again this month. Fully detached homes suffered the shallowest dip with condos/town homes and land only seeing a very significant slowdown in action.
Let’s break it out and see how the market is adjusting to rising interest rates, increased inventory and relaxed demand from buyers.
Fully detached homes suffering from an interest rate hike from Bank of Canada
Fully detached homes dollar volume is down 11% to $56,500,000 and unit sales are down 18% to 50 homes sold last month. Inventory is up by 24% over last year to 245 available homes for sale. With the increase in inventory, our sales success ratio (the amount of sales versus available inventory) is 20%. This, despite it being much slower, is still an excellent sales success ratio and shows that we are on the cusp of a balanced market.
Year to date we are down 12% in dollar volume to $396,000,000 and down 25% in unit sales to 333 homes sold in 2022 so far.
The average cost of a detached home is up 17% from last year to $1,190,000.
Increased inventory in the condo and townhome segment
Condo and Townhome dollar volume is down 57% to $4,303,000 and unit sales are down 66% to 6 units sold. Inventory is down 21% to 44 available attached homes for sale. With the decrease in inventory for this segment of the market our sales success ratio is in balanced territory at 14%.
Year to date we are down 27% in dollar volume to $60,300,000 and unit sales are down 39% to 93.
The average cost of an attached dwelling is up 15% to $645,000.
Land only properties hit the hardest
Land only property sales are the worst hit with dollar volume down by 73% to $1,700,000 and unit sales own 68% to 5 empty lots sold in June. Inventory is down 39% to 74 available lots making our sales success ratio for this segment of the market 7%….a buyer’s market by any measure.
Year to date we are down in dollar volume by 18% to $60,750,000 and unit sales are down by 35% to 98 lots sold in 2022 so far.
The average price for land only property is up 25% to $620,000.
Home Sellers must be aggressive to attract attention
Home Sellers should make sure your home is “show ready”, including curb appeal, with no deferred maintenance issues for buyers. After coming out of a two year+ high value, seller’s, market you should also be prepared to price your home aggressively in comparison to your local competition.
Home Buyers interest rate increase eating away at market-slide gains
Home Buyers should lock in your best rate for 90 – 120 days today. We should expect another big jump in the prime rate when the Bank of Canada meets again on July 13th. For those of you playing the waiting game hoping to see less expensive prices…think twice… Even a .5% hike in the prime can result in loosing (over the amortization period) any amounts you might save waiting/hoping for the market to slide down. Instead, lock in your best rate and negotiate the deal you want today. This would make for a much better chance at a positive outcome.
