May 30, 2018 Market Update

Sunshine Coast Detached Listings
Sales down by 20% over the previous year

There are currently 340 detached listings on the Sunshine Coast. This is up from April 30, 2018 when there were 303 detached listings. Detached sales year-to-date ending May 31, 2018: 225 sales, in 2017: 281 sales; in 2016: 519 sales, and in 2015: 238 sales. The current market's hot price range is between $501,000 and $600,000 with 49 sales occurring in this price range. With the current sales pace, this represents approximately a seven and a half month supply of listings.

Sunshine Coast Attached Listings
Sales down by 22% from last year

There are currently 50 current attached listings. This is slightly down from April 30, 2018 when there were 53 attached listings. Attached sales this year-to-date ending May 31, 2018: 79 sales; in 2017: 101 sales; in 2016: 109 sales and in 2015: 69 sales. With the current sales pace this represents an approximate three month supply of listings. Attached listings represent strata unit apartments, condos and townhouses.

Sunshine Coast Land Listings
Sales down 5% over previous year

There are currently 188 bare land listings. This is up from April 30, 2018 when there were 179 land listings. Land sales year-to-date ending May 31, 2018: 80 sales; in 2017: 85 sales; in 2016: 203 sales, and in 2015: 63 sales. With the current sales pace this represents approximately a year supply of listings.

Year-to-Date Detached Sales
  • $000 to $300,000 with 16 sales
  • $301,000 to $400,000 with 10 sales
  • $401,000 to $500,000 with 22 sales
  • $501,000 to $600,000 with 49 sales
  • $601,000 to $700,000 with 41 sales
  • $701,000 to $ 800,000 with 33 sales
  • $801,000 to $900,000 with 14 sales
  • $901,000 to $1,000,000 with 13 sales
  • 27 sales over a $1,001,000
Where is the Market heading?

I have attached the stats put out by the Real Estate Board for last month for your review.You can see above that the sales have declined and listings are starting to creep up. This is moving toward more of a balanced market leaning to the buyer. Our market seems to move in 6 to 7 year cycles and it is not unusual to have up and down cycles within a cycle. We are in the third to fourth year of an up cycle so this pause in the market has been created by government intervention.

I believe activity will increase again next year as the market adjusts. Now is a time for buyers to find some deals in the market and for sellers to decide if they wish to wait.Sunshine Coast is still the best neighborhood in the Lower Mainland and the best value, being 20 to 30 percent lower than comparable areas of the Lower Mainland.

Why fight the traffic when you can relax aboard a scenic cruise while catching up on rest or work during the 40 minute commute.Call me today with any additional questions, or for a free market evaluation - 604.885.7810 or email: kenan@kenanmackenzie.com   

Slower Growth Expected for Economy and Housing Market
BCREA 2018 Second Quarter Housing Forecast Vancouver, BC – May 31, 2018.

The British Columbia Real Estate Association (BCREA) released its 2018 Second Quarter Housing Forecast today.Multiple Listing Service® (MLS®) residential sales in the province are forecast to decline 9 per cent to 94,200 units this year, after posting 103,700 unit sales in 2017. MLS® residential sales are forecast to remain relatively unchanged in 2019, albeit down 0.2 per cent to 94,000 units. Housing demand is expected to remain above the 10- year average of 84,800 units into 2020.                                                                                                                                                       
“The housing market continues to be supported by a strong economy,” said Cameron Muir, BCREA Chief Economist. “However, slower economic growth is expected over the next two years as the economy is nearing full employment and consumers have stepped back from their 2017 spending spree.”“Demographics will play a key role in the housing market over the next few years,” added Muir, “as growth in the adult-aged population is bolstered by immigration and the massive millennial generation enters its household forming years.”Muir notes there are, however, significant headwinds in the housing market. “Rising mortgage interest rates will further erode affordability and purchasing power, with the effect being exacerbated by an already high price level. The legacy of tougher mortgage qualifications for conventional mortgagors will be a reduction of their purchasing power by up to 20 per cent, and the provincial government’s expansion of the foreign buyer tax and several other policies aimed at taxing wealth is sending a negative signal to the market and likely diverting investment elsewhere.”The combination of slowing housing demand and rising new home completions is expected to trend most BC markets toward balanced conditions this year, and lead to less upward pressure on home prices.