Sunshine Coast Real Estate Market Seeing Some Bright Spots (October 2018)
The residential real estate market continued to decline on the Sunshine Coast overall but has seen some bright spots this past month.
Detached Home Sales
In the Detached Market we enjoyed over $29,000,000 in gross dollar volume, however, this was 33% under last years production. Total units sold was 49, down 24% from last year. Year to date is less dramatic with dollar volume down 21% to $342,200,000 and unit sales down 24% to 470. The average sale price last month is down 11% to $595,000 but YTD we are still up 4% to $728,000. The success ratio stands at 14% bringing us out of a buyers market (in September) and into a balanced market for October.
Condos & Townhomes
In the Attached Market condos and townhomes faired much the same. Gross dollar volume was at $4,750,000 which is down 49%. Total units sold was 9 down 57% from last year. Year to date shows gross dollar volume down 44% to $57,570,000 and unit sales down 39% to 125. That average sale price was down 1% last month to $496,000 and up 14% to $470,000 a year to date. The success ratio stands at 16% keeping the attached market in seller’s hands.
Bare Land Property
Bare land property suffered in a less dramatic fashion with gross dollar volume down 25% to $2,881,000 and unit sales down to 11 from 13 in September. Year to date shows the same with total dollar volume down 26% to $51,800,000 and total unit sales down 21% to 137. The average sale price for the land was down 11% last month to $262,000. The success ratio stands at 5% leaving the Bareland market firmly in the hands of Buyers.
Interest Rate Hikes
We noticed a spike in sales this past month with folks making their purchase before interest rates were hiked. Many buyers were tired of sitting on the fence and decided to buy in instead of paying a higher rate later. We are also expecting some of the present pent-up buyer demand to play itself out over the early new year. This will soften any further reductions in sales and keep prices buoyant.
Buyers – we are starting to see sellers become more flexible on price! Interest rates will continue to rise if the Bank of Canada has its way…we don’t have much choice but to follow the lead of our southern neighbours and they seem determined to bring the interest rate up. Do the math and see if waiting for better prices will actually result in savings…..
Sellers – although prices are, overall, up you should consider being quite flexible on price when an offer comes in depending on your home and the neighbourhood in which you are located….Buyers have more choice now so “work with the bird in hand”.