Market Update June 30, 2017

(July 04, 2017 )

Prices up. Sales down.

Sunshine Coast Detached Listings
Sales down by 40% over the previous year

There are currently 293 detached listings on the Sunshine Coast. This is up from May 31, 2017 when there were 283 detached listings. Detached sales year-to-date ending June 30, 2017: 372 sales, in 2016: 623 sales; in 2015: 345 sales, and in 2014: 267 sales. The current market's hot price range is between $401,000 and $500,000 with 76 sales occurring in this price range. With the current sales pace, this represents approximately a five month supply of listings.

Sunshine Coast Attached Listings
Sales down by 6% over the previous year

There are currently 36 current attached listings. This is down from May 31, 2017 when there were 42 attached listings. Attached sales this year-to-date ending June 30, 2017: 123 sales; in 2016: 131 sales; in 2015: 87 sales and in 2014: 61 sales. With the current sales pace this represents a one and a half month supply of listings. Attached listings represent strata unit apartments, condos and townhouses.

Sunshine Coast Land Listings
Sales down by 57% over the previous year

There are currently 239 bare land listings. This is up slightly from May 31, 2017 when there were 236 land listings. Land sales year-to-date ending June 30, 2017: 105 sales; in 2016: 244 sales; in 2015: 75 sales, and in 2014: 31 sales. With the current sales pace this represents approximately a 13 and a half month supply of listings.

 Year-to-Date Detached Sales
  • $000 to $300,000 with 21 sales
  • $301,000 to $400,000 with 30 sales
  • $401,000 to $500,000 with 76 sales
  • $501,000 to $600,000 with 67 sales
  • $601,000 to $700,000 with 58 sales
  • $701,000 to $ 800,000 with 39 sales
  • $801,000 to $900,000 with 20 sales
  • $901,000 to $1,000,000 with 8 sales
  • 53 sales over a $1,001,000
Inventory is starting to slowly creep up and sales are down.
Where do we go from here?

There is no reason to panic. We are still in a very healthy real estate market. Even though inventory has increased a little, it is still very low, particularly in the attached homes. I have sellers who would like to downsize to a townhouse, particularly the rancher style, but I have nothing to show them. A few days ago a townhouse came on the market off of Park Road in Gibsons and received 4 offers within a couple of days. We need the developers to take notice and fill this gap in the market place. A few years ago, there was a glut of attached listings and now there is a shortage. Previously we would see a downwards pressure on pricing. Now we would have to see the amount of listings on the market double for the same result.

A year ago, the bulk of our sales were below $400,000. This year all the sales below $400,000 does not equal the sales of the price range between $601,000 to $700,000. This $601,000 to $700,000 range does not represent high end homes or fancy view homes but represents a nice family home. This is a huge jump in the market price in a little over 12 months.

I believe the summer activity in sales may cool. Last year we saw a slow down in the market with the introduction of the foreign buyer’s tax. This year we have a change of government. This is not unusual to see. With any change the market gets concerned until they see actually what the new government will do. The rhetoric during the campaign is not necessarily what the party does once in power, so we have to wait and see. Buyers may be concerned with interest rate starting to go up. Just a reminder that this is the Bank of Canada rate and it has very little effect on the long-term mortgage rates. It will affect those on a variable rate mortgage.

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

The market in 2017 is going to be very interesting. Call me today with any additional questions, or for a free market evaluation - 604.885.7810 or email: kenan@kenanmackenzie.com