Real estate slow-down due to latest Provincial Government response to the ongoing COVID19 pandemic
I have noticed over the past several weeks prior to writing this blog, that calls and inquiries on properties have slowed down considerably. Rather than a market fluctuation or correction, I am pinning the slow-down in action mostly on the latest Provincial Government response to the ongoing Pandemic.
That said, the statistics for April show another huge increase in sales and something I didn’t think would happen on the Sunshine Coast – the average price for a home this past month, and indeed for the year to date, has surpassed one million dollars.
Let’s see how the statistics break out for April 2021:
Fully detached home sales on the Sunshine Coast BC
Fully detached home sales on the Sunshine Coast BC surpassed last April’s dollar volume by 326% to reach $87,600,000 and unit sales were up 207% to a total of 80 homes sold in April alone! A big culprit for rising prices has been the severe lack of inventory…down again this month by 37% to 171 homes available.
This means our sales success ratio (the number of sales versus the available inventory) is 47% putting us deeply into a sellers’ market for the twelfth month in a row.
Year to date the dollar volume is up by 239% to $301,000,000 (1/3 of ONE BILLION dollars in the first quarter of 2021…oh my) and unit sales are up 145% to 299 homes sold since the New Year.
The average price for a fully detached home has reached $1,006,331 (year-to-date average).
Condos and townhome sales
Condos and townhome sales are up in dollar volume by 769% to $16,600,000 and unit sales are up 1000% to 30 units sold in April. Available inventory is down, of course, by 55% to a total of 50 homes available.
The sales success ratio for this segment of the market remains high at 60% keeping it a seller’s market.
Year to date the dollar volume is up 342% to $57,900,000 and unit sales are up 309% to 105 units sold in 2021.
The average price of a condo or townhome has reached $550,000 (year-to-date average).
Land-only sales are interesting as we had zero land-only sales in April of 2020. Our dollar volume this year is $15,000,000 unit sales are 25 lots/bare land sold. The available inventory is as low as I’ve seen it for land at 129 available properties. This is down 42% from last year.
This puts the sales success ratio at 19%… almost unheard of territory for this segment of the market.
The average price for a piece of land has reached $490,000 (year-to-date average).
My real estate advice for May is short and sweet
Home Buyers – be ready with preapproval, a large down payment if possible, and be ready to act immediately on your choice of purchase. You may be in a situation where you will have to compete with other buyers for the same property so decide how much risk you are comfortable with regarding waiving certain conditions.
Home Sellers – while the statistics paint a very rosy picture for sellers the fact remains that each home is truly unique (especially on the Sunshine Coast) and to effect a quick, competitive, sale your home must have the deferred maintenance looked after and try to make your home look great when you show it! Buyers are willing to pay for turn-key situations, not necessarily furnished, but rather, clean, no fixing, and move-in ready will get your home sold faster and for more money. If you decide to sell as-is…or sell a rental property….then expect it to take longer.