Home sales volume fell across the board on the Sunshine Coast in December. Although demand has tapered off a bit, the main culprit for lower volumes has been the lack of available inventory…there is less inventory now than at any point in my 19-year career. A less significant factor has been the extreme weather (both rain and snow) keeping buyers at bay…so to speak. Let’s see how it breaks out:
Fully detached home sale
Fully detached home sales were down a modest 10% to $55,300,000 and unit sales were down 26% to 46 homes sold in December. Available inventory is down 41% to 73 homes for sale, therefore the sales success ratio (the number of sales versus the available inventory) was 63% maintaining a pronounced Seller’s Market!
Year to date shows 2021 to be the highest volume year ever recorded on the Sunshine Coast. Dollar volume was up 35% to $874,400,000 and unit sales were up 6% to 823 homes sold.
That average price for a home (total dollar volume divided by total sales) on the Sunshine Coast in 2021 was up 27% to $1,062,000. The median price for a home this year (the price of the home that sold in the middle) was $899,000.
Condos and Townhome sales
Condos and Townhome sales were down 32% in dollar volume to $5,850,000 and 39% in unit volume to 11 attached homes sold in December. Available inventory is down 44% to 36 units, therefore the sales success ratio (the number of sales versus the available inventory) was 31% maintaining a Seller’s Market.
Year-to-date shows dollar volume up over 2020 by 32% to $147,800,000 and unit sales up 22% to 260.
The average price for a condo or townhome (total dollar volume divided by total sales) was $568,500. The median price this year (the price of the home that sold in the middle) was $525,000.
Land only sales
Land only sales are down in dollar volume by 59% to $3,700,000 and unit sales are down by 52% to 10 lots sold in December. The available inventory is down 51% compared to last year at this time, therefore, the sales success ratio (the number of sales versus the available inventory) was 14%….this puts this segment market in Balanced Territory.
Year-to-date numbers paint a more accurate picture of the overall land-only market. Dollar volume is up over 2020 by 104% to $126,300,000 and unit sales are up 34% to 237 lots sold in 2021.
The average price for a lot in 2021 was up 51% to $532,000 while the median price was $399,000.
2021 in Review – There were several factors that produced these year-to-date volume and value results:
- Continued demand/migration to the Sunshine Coast – although this has tapered off a bit, the Covid – 19 Pandemic continues to be a driving force in folks’ thoughts about where they want to live and what they are willing to do to get there.
- Continued low-interest rates, despite the more demanding federal stress test, was one factor that made paying more easier than originally thought.
- The slow reduction of available inventory created a situation where prices rose in a very significant way. Even toward the end of the year, where demand was slowing down, the amount of inventory was so drastically reduced that prices continued to rise.
What will 2022 bring – there are several potential factors that will make the coming year continue to be a competitive market for buyers:
- A promised interest rate increase from the Bank of Canada (BOC). With inflation conservatively at 4%, the BOC will raise the prime rate. How much is the question? I think we will see several modest increases…but, even a ½ percent, makes a noticeable difference in monthly payments.
- There will be another rush to buy when the increase is announced as everyone who locked in a rate for 90 or 120 days will now be in a hurry to purchase before the lock-in expires.
- Inventory will continue to be the most significant factor when it comes to price in 2022. I think we will see fewer transactions, due to inventory, and higher prices.
Buyers – lock in a low rate asap and be prepared to devote significant resources, both in time and capital, to finding your home. Pick a realtor you like because it’s going to get intense.
Sellers – make sure you have somewhere to go and a reason to go there! It’s not a good idea to simply sell because you can get “top dollar”. Buying back into the same market will almost guarantee a loss. However, if you have a plan to downsize, move to a different market, or cash in equity and move up to that dream home then the 2022 market will help you realize that plan.
For a no-nonsense, sensible approach to selling your home call me, Russ Qureshi, REALTOR®, to get the job done. Enjoy the benefit of my market intelligence now and call 604-741-7119 or send me an email at firstname.lastname@example.org Visit my website at www.coastlifestyles.ca