Market Update October 31, 2016

(November 07, 2016 )

Sunshine Coast Detached Listings
Sales up by 39% over the previous year

There are currently 279 detached listings on the Sunshine Coast. This is down slightly from October 18 when there were 297 detached listings. Detached sales year-to-date ending October 31, 2016: 871 sales, in 2015: 625 sales; in 2014: 500 sales, and in 2013: 405 sales. The current market's hot price range is between $351,000 and $450,000 with 215 sales occurring in this price range. With the current sales pace, this represents approximately a three-month supply of listings.

Sunshine Coast Attached Listings
Sales up by 48% over the previous year

There are currently 58 current attached listings. This is down slightly from October 18, when there were 59 attached listings. Attached sales this year-to-date ending October 31, 2016: 207 sales; in 2015: 140 sales; in 2014: 97 sales and in 2013: 75 sales. With the current sales pace this represents an approximate three-and-a-half-month supply of listings. Attached listings represent strata unit apartments, condos and townhouses. Attached property sales are up over the previous years.

Sunshine Coast Land Listings

Sales up by 172% over the previous year


There are currently 250 bare land listings. This is down slightly from October 18 when there were 254 land listings. Land sales year-to-date ending October 31, 2016: 353 sales; in 2015: 130 sales; in 2014: 61 sales, and in 2013: 50 sales. With the current sales pace this represents approximately a seven-month supply.

Year-to-Date Detached Sales
  • $000 to $300,000 with 80 sales
  • $301,000 to $400,000 with 181 sales
  • $401,000 to $500,000 with 204 sales
  • $501,000 to $600,000 with 136 sales
  • $601,000 to $700,000 with 79 sales
  • $701,000 to $ 800,000 with 53 sales
  • $801,000 to $900,000 with 40 sales
  • $901,000 to $1,000,000 with 28 sales
  •  69 sales over a $1,001,000
Where did the market go and when will it come back?

There have been two major changes in the market place. The first being the Foreign Buyers tax of 15% brought in on August 2, 2016. This is a similar to the 15% tax that Hong Kong passed in October 2012. In Hong Kong it cooled the market for a few months before bouncing back. The foreign buyer is a small percentage of the overall market but they are part of the engine. The foreign buyer buys a home and that allows the seller to purchase another home, maybe on the Sunshine Coast or in another part of BC.

The second major change is to the mortgage rules. A high ratio borrower now has to qualify at the 5 year Bank of Canada Rate which was last pegged at 4.64%. This does not mean that is the rate they will pay at the bank, it just means that this is the rate they must qualify at. A high ratio borrower is anyone with 20% or less to put down as a down payment. So depending on the borrower, this could affect the amount they could qualify for by 25% or more. This will affect your first time buyer coming into the market.

I believe that the foreign buyers will be back into the market if we follow Hong Kong’s history. The mortgage rules will have an effect that makes it hard to predict how the Sunshine Coast market will react.  It is a crystal ball as to how the market is going to behave.

The market may take an extended breather, call me today with any additional questions, or for a free market evaluation - 604.885.7810 or email: kenan@kenamackenzie.com

The Sunshine Coast is still the best neighborhood in the Lower Mainland and the best value at any time of year.