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A New Link, New Possibilities?

 

Talk of a fixed link to the Coast dominated the real estate landscape last year as many Lower Mainland purchasers became aware of the Coast and what was an oversupply in a soft market and began speculating on the upside of the market. This interest and excitement led to the strong numbers we saw in 2016 and it's my prediction we will see more of the same going into the Spring and a Provincial election. 

 

Will Discussions Continue?

 

There are quite a number of good reasons for the Province to continue the discussion, none which have much bearing on providing local residents improved service!  They are (in no particular order):

  • BC loves a major infrastructure project and the employment and economics that go with them
  • Higher than a typical bridge toll will ensure that a bridge is sustainable and profitable over the long term, as opposed to the huge and constant drain the BC Ferries has on provincial coffers
  • A link would focus Horseshoe Bay terminal on Vancouver Island runs which are the most profitable for the system and Province.  Horseshoe Bay is currently near capacity and reducing the demands for a Sunshine Coast ferry opens it up to more valuable use
  • Property transfer taxes have become a huge boon to the provincial funding and a fixed link opens up a tremendous amount of new property and speculation to the Lower Mainland which we know is under huge national and international pressure
  • By talking about a bridge, the Province avoids having to make any further substantial infrastructure spending on existing service.  And what government doesn't like to defer decisions it really doesn't want to make?

So these are all big business, and the Province would be remiss not to consider the tangible future (economic) benefits of such a project.  It's my prediction that we will shortly hear that a bridge to the Sunshine Coast is "feasible".  Then let the politics begin! 


But do We Really Want the Change?  


There is little doubt that a fixed link will open up huge economic opportunities for the coast, and at the same time there is little doubt that it would change the nature of our Coast forever.  Further, none of this has taken into consideration environmental impacts to our coastal area.  Expect a long and raucous ride once the wheels get turning.  There will be a lot of pros and cons to be argued!


Cheers, 


-Gord

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Consumer Confidence and Trump

 

While consumer confidence continues to be at high levels in BC, there have been some downward pressure.  Over the years, my Broker has been tracking how Sunshine Coast real estate cycles closely follow what the consumer confidence mood is in the Lower Mainland and British Columbia.

 

The two major issues that are going to affect how people are feeling - our upcoming provincial election, and Trump.

 

It will be interesting to watch consumer confidence levels as we roll into the spring, particularly with the new Trump Presidency. Our neighbours to the south have created a very unsettling environment so being the proverbial mouse beside the elephant; it will be in Canada’s interest to watch which way that elephant is rolling.

 

Business is likely not going to suffer with Trump (the opposite could be the case). However, the manner in which he is operating is creating a lot of uncertainty, and that isn’t so good for business and consumer confidence. How this will directly affect us is unclear but there is a certainty it will. It's going to be something we will talk about this year and keep an eye on.

 

I heard twice this week that some people are suggesting the market is somehow soft or flat, but we continue to be in a very liquid environment which isn’t always the case on the Coast. There remains a lot of existing and new interest for property on the coast and buyers are ready to act.

 

If you are wondering how the current market is affecting your real estate option and plans, feel free to give me a ring and we can discuss how the situation is affecting you.

 

Until next time!  

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The real estate market on the Sunshine Coast was very active in 2016.  Here are some of the major highlights that have come from our office.

 

Detached Homes

  • There were 952 detached homes sold. That’s 194 more than 2015’s total of 758; an increase of just over 25%. The increased activity was reflected in the Benchmark Price – that is, the price of an average home in an average area – which rose 26% last year, to $492,900. 
  • Strong demand, short supply, and a large price differential from Vancouver continue to put upward pressure on prices.
Vacant Land
  • Sales of vacant land went through the roof last year: 353 compared to 149 the year before. That’s an increase of over 135% and evidence that buyers are looking more toward vacant land as the shortage of detached listings persists. The Benchmark price for land is not available, but we feel there was an increase in the order of 15%. 
Apartments and Townhomes
  • Sales of apartments and townhomes increased 34%, from 172 in 2015 to 231. The Benchmark price is also not available, but our guess is prices increased 15 - 20%. It’s interesting to note that, while sales of detached homes fell in the latter part of 2016, sales of attached housing did not. This shows the influence of retirees and indicates this sector will remain strong this year.

The best information suggests that 2017 may be another booming year for real estate demand on the Sunshine Coast.  If you or someone you know would like to chat about how you might benefit, don't hesitate to reach out over email (gord_clayton@remax.net), or call me directly at 604-884-4313.  

 

Cheers!

 

Gord

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