MV Queen of Surrey (Photo: bcferries.com)

BC Ferries has responded to the voice of the Sunshine Coast in a manner that I can't recall happening before. Facing a scathing public reaction to a ferry schedule that was entirely unreliable for commuters and incapable of being timely, BC Ferries undertook the step of consulting the public on delivery of their schedule.

This sort of public consultation has happened in the past, and typically little change has come of it.  However, a couple things happened differently this time that it apart from previous incarnations. First and most importantly, BC Ferries was determined to try and align their schedule with a delivery that was actually feasible and reliable. The second is that over the winter of 2016/17, the clouds parted for our travelling community when BC Ferries was shifted to hourly service due to ship deck malfunctions. Suddenly everyone was happy – one could leave for the ferry knowing they wouldn’t be stranded at a terminal for hours by missing a boat.  This wasn't just a moment of bliss, but an actual transformation of lifestyle for many.  The overwhelming positive response to the improved service made it crystal clear how much of an impact ferry schedules have on our resident's lives.  This was stated loud and clear during the public consultations – not in a bad way, but in a celebratory way.

Humorously, I was invited to one of the consultation meetings. The meeting starting promptly at 6:00pm so the consultants could get home on the 8:20pm ferry. Of course, as things started wrap up at 7:30, many of us were in a state of amusement knowing the ferry had yet to arrive Horseshoe Bay for the return trip (running over an hour late). I asked the consultants where they lived and what time they were hoping to be home, to which both replied “about 9:30pm”. Of course, when I followed up with them the next day I found they had actually arrived home closer to 11:15pm. I welcomed them to our world, and implored upon them to be brave when making our voices heard. To my delight, the consultants didn't sugar-coat their report.

Thankfully, we have just been awarded a significantly expanded permanent schedule for the first time in generations. BC Ferries have pledged to expand to two ferries and hourly service as soon as equipment and logistics allow. They've set aside the infrastructure money and the ships are on the order table. This is huge news for the Sunshine Coast. And I encourage residents to take full advantage of an expanded service to enjoy a significantly improved level of connectivity with the Lower Mainland.  Here's the new expanded schedule and update from BC Ferries.

Sure I know we all live here for the quiet lifestyle, but I'm finally able to catch a Canucks game and make it home!  That’s big for a Canuck fan.  I hope we all enjoy a little more access to our favourite city or regional activities.

Talk to you soon,

Gord

Some Key Information for the First time Buyer's Loan Program

By now most of you will have heard that the British Columbia government is providing matching low interest loans to first time buyers. This is a remarkable opportunity for many that have been able to save but perhaps not have quite enough for a downpayment. Here are the details: 

To qualify, buyers must:

• Be buying their first home;
• Obtain a high-ratio, insured first mortgage for at least 80 per cent of the purchase price;  
• Have a combined gross household income not exceeding $150,000;
• Have saved a down payment amount at least equal to the loan amount;
• Be a Canadian citizen or permanent resident for at least five years; and
• Have lived in BC for at least the full year preceding their application.

Key facts:

• The loans will match a home buyer’s contribution to a down payment up to five per cent of the home’s purchase price. 

• The maximum purchase price to qualify for a loan is $750,000 (excluding taxes and fees).

• After five years, buyers can either repay their loan or enter into monthly payments at current interest rates.

• Loans through the program are due after 25 years.

• The loans will be due in full if the buyer defaults on a payment, ceases to use the home as a principle residence or resells the home.

While this program can be a boon to the right person, it's always good to exercise caution when taking on large amounts of debt.  As always, I'm happy to chat with you about how to make this new program work for you!  Call me at 604-885-4313.

Listening to the news these days one is led to believe that things are slowing down, but some perspective on the numbers locally shows very strong underlying demand. Despite a pace of sales which is about half of what we saw last year, two things stand out: First, despite a marginally increasing inventory, the sales vs. listings ratio continues to steadily climb towards a Seller's Market. This is resulting in steady price increases year over year with well over half our detached listings priced over $800,000. Second, with prices escalating as quickly as they are on detached homes, we have seen very strong demand for more affordable attached sales. In this case, we have 70% fewer listings than a year ago as well as less days on the market. This, too, has resulted in a robust Seller's market and prices rising rapidly in that sector as well.

From our RE/MAX Oceanview Office:

The April statistics show our Spring market is in full bloom. There were 67 detached homes sold this past month. That’s an increase of 13% over March and the second busiest April in 10 years. The Benchmark Price – that is, the price of an average home in an average area – rose another 2.8% last month to $532,300. This is due mainly to fewer listings, which are down 25% from last year. 

Apartments and townhome sales totaled 23. That’s the same number as April of 2016, but twice that of last month’s total. We anticipate more price increases as supply shortens in this sector. With land, sales increased to 21 from just 13 in March. That’s up 66%, but still well below the 60 sales noted in April of last year. It is safe to say that prices in this category are rising, too, as the supply lessens.

As to where prices are going, we can only assume that as long as there is large price gap between the Coast and Vancouver, and local demand continues to be strong, values will increase. 

One thing we can state with certainty: if you’ve been thinking about selling, there has never been a better time to bring property onto the market.

Want to stay informed? Be sure to stay in touch with your RE/MAX Oceanview Agent and be sure to read the Weekly Report.  

Recent media is quite a mixed bag with one pundit admitting that they can spin stats to read any sort of preferred slant.  Shocking!  I guess this is the foundation of “fake news”.  What isn’t fake is that despite lower numbers of sales due of low inventory, there remain a lot of motivated buyers wanting to get into our Sunshine Coast real estate market. 

Markers that have indicated a continued shift towards a “Seller’s Market” on the Sunshine Coast, and it won’t take much before we see the same demand we saw last year which pushed prices up almost 25%.  Last month alone saw over a 3% increase in our benchmark prices.   And as much as prices are being driven higher, it appears that the underlying strength and level of interest on the Sunshine Coast is going to keep that trend going for some time.  This means the market is still offering good opportunities for buyers, and owners can expect to see their home values continue to rise.

The reasons for the continued interest in our market are pretty straight forward.  Much more affordable values compared to Vancouver; an aging population moving towards a healthier and slower lifestyle; and discussion of transportation to the area is raising our profile in the Lower Mainland.  These factors are going to continue for the foreseeable future and the overall Canadian economy is starting to follow the strong American performance of late.  The one predictable headwind will be rising interest rates and borrowing costs likely later this year.  This will influence consumer confidence, but the question is “how much”?  The rates will only rise if the market is strong(er) so I doubt we will see any major shift in thinking.

Bottom line, the good news is the Sunshine Coast remains a healthy market and the continued underlying demand will keep it this way for the foreseeable future!

Cheers, 

Gord 

From the office this week: 

"Recently we’ve shown how there is more to our professional listing service than lawn signs and ads in the paper. We talked about our expert advice on staging, pricing and MLS. We covered qualifying buyers, dealing with offers and turning those offers into contracts. But doing this requires a skill that most non-professionals find difficult: negotiation. Many people don’t like negotiating. They find it difficult to advocate their own position and they equate the process with confrontation. They mistakenly think it has to produce a winner and a loser. This is where we can really help. We negotiate for a living. We’re comfortable with the process. We provide a buffer between the parties and we have no difficulty at all advocating our clients’ positions. At the same time we understand that the process works best as a collaboration. A win/win, if you will. The goal isn’t necessary to have both parties feel as though they got everything they wanted. It’s more to have both parties feel as though they got everything they needed. It requires a thoughtful, professional approach and a coherent plan moving forward. For more on our professional representation of sellers, contact your RE/MAX Oceanview Realtor. And keep reading the Weekly Report."

Sales

SALES THIS WEEK:  20 [SUNSHINE  COAST, ALL OFFICES]

PRICE RANGE

AREA

Listings

CURRENT LISTINGS:  499   

NEW LISTINGS THIS WEEK: 37        DETACHED. SALES, PAST 30 DAYS 

SALES to LIST  RATIO:  24%

*The Sales/Listings Ratio is a guide to market conditions.

…Is what I would have said if April Fool’s Day fell on Sunday, but it didn’t so there you are!

Buyer’s Market vs a Seller’s Market

The story going into the 2017 Spring Market is easily the listing count.  Despite hearing reports of markets correcting or facing headwinds, the listing count tells the tale.  And it is amazing how much difference 5 years can make.  While we saw a peak number of listings in 2014, the inventory had crept up after the financial meltdown in 2008 and a distinct lack of buyers meant that sellers were piling up against buyers and the market bounced around a sales-to-listing ratio (SLR) of 4-7% for a few years.  This resulted in 2016 numbers reflecting a perfect storm of demand meeting supply.  We saw historic volumes that we should can’t expect to see for another generation.

For those that don’t know, under 15% SLR is considered a “Buyer’s Market” which means fewer buyers than sellers and price pressure going down.  15-22% is considered a “Balanced Market” which means price stability and demand being met with supply and above 22% it is considered a “Seller’s Market” and there is pressure on prices to rise.  This past week’s SLR was 23%.  As we move into our first real period of decent weather in months with a listing count at the lowest level in 20 years, the picture remains clear – unless there is a major economic event, we will see a very buoyant market in 2017.

Buyers will be under pressure to make quick decisions but I think they will be rewarded.  Sellers will continue to be of the mind to make a bit more money.  As a caveat, the SLR is down from a high of 35% last year, and 23% isn’t a robust Seller’s Market. Thus, caution on price expectations is in order, but it is fair to remain optimistic that values are going to see a notable bump sooner than later.  The upshot is that if you are thinking of taking advantage of the market now is the time to act.  Send me an email if you want to have a chat on how the market is affecting your plans.

Talk to you next week!

Cheers, 

Gord 

Weekly Report - March 7-12, 2017

Our brokerage puts out weekly reports highlighting important topics and statistics in Sunshine Coast real estate trends.  Here's the latest from the RE/MAX Oceanview office in Sechelt.

Snow & Sleet = Slower market

Sometimes the cold and wet seems to put a damper on real estate activity! Earlier this year I suggested that we keep an eye on the number of new homes coming onto the market vs. the number being sold as an indicator of where trends are going. At this point of the year, inventory has been slowly but steadily growing. We have seen about 17 new listings a week versus 11 sales per week for the past couple of months. This is great news for buyers who continue to struggle finding choices, and it is true that we desperately need new listings to slow price increases down. The upshot is that early 2017 is shaping up to be a much more balanced market than last season.