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.

Mixed Signals are becoming routine.

Here we are rapidly approaching the Spring market. It is fair to say the industry is expecting brisk activity, but how the market will actually unfold remains to be seen.  Despite news coming out of the Lower Mainland of a significant slow-down in actual sales, the situation that is not being weighted is the low inventory throughout the region and apparently the Province.  Demand remains strong, and with this lower inventory, basic economics would suggest that we are going to continue to see prices increase.  However, there needs to be warnings and caution to those entering the market.

Prices on the Sunshine Coast are reaching new highs, but the question is: where can it go from here?  My biggest concern remains how sustainable our prices are, and when an eventual slow-down will occur.  This week I pulled an ad from the Squamish area which is showing a very ordinary rancher in the $700k range and a more elaborate one in the high $800’s.  These are tremendous numbers that are starting to reflect pricing in North Vancouver.  But there are major differences between the Coast market and the Sea to Sky, namely the amount of economy and industry that flows throughout that area.  North Vancouver is bustling with billions of dollars going into ship building, and the Sea to Sky is easily manages billions in tourism dollars.  Squamish is also sandwiched between Whistler and West Vancouver which have the highest real estate values in the country so there is the rub!

The Sunshine Coast, on the other hand, remains a very optional retirement area with a largely undeveloped tourism industry and zero manufacturing (Coastal Craft aside).  Therefore our local market conditions will be more subject to retirees entering the market and the general consumer confidence in the Lower Mainland.  We are also anticipating increased costs of borrowing this summer with the Canadian economy doing quite well and our lower dollar providing incentives for exports.  So while I do predict that our prices will rise this year, I see some increasing stresses coming to bear towards the end of 2017 and into 2018.  This all translates into maintaining a balanced attitude toward where our market can go, and should make decisions a little more challenging for both buyers and sellers.

Bottom line? All parties should proceed with cautious optimism with a left eye on the trends. 

Next week we will review what those trends are looking like - I made some predictions earlier this year so let’s review and revisit to see how things are shaping up. 

Have a great day and if you are in the market or know someone entering it, let me know and I’m always happy to provide a free market evaluation and report for your area of interest. 

Cheers,

Gord

Sunday Morning Musings – Feb 19, 2017

The signals coming from the Market have been getting stronger and stronger over the past few weeks.  Despite my broker insisting that statistics are demonstrating a more balanced market and lower overall activity, this really doesn’t reflect what we are “feeling” currently.

Buyers remain highly motivated, and prices remain on a steady upward trend.  Good properties are seeing multiple/competing offers immediately.  In particular, there is a push on attached properties like condos and townhouses, with a veritable run on apartments over the past 6 months.  Currently we have 49 units listed on the Sunshine Coast and have had 95 sales since August last year.  This doesn’t include those units that are currently under offer, of which I am involved in a couple. 

This is in part further evidence that the Sunshine Coast continues to be a premium retirement destination and prices are favourable compared to other areas.  However, the prices are rising steadily now and this is in large part because there simply aren’t any detached houses for under $400,000.  Sooner than later that could be under $500,000!  So not only are detached homes rising, but apartments and attached units are seeing strong gains.  It's a great time to act.

This all goes to demonstrate that 2017 is going to be a robust and dynamic year for sellers and buyers.  Will be interesting!

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.