The Real Estate Market on the Sunshine Coast BC is holding out despite the headlines.
While prices continue to adjust to the new interest rates, there are other signs that are pointing to a continual balanced market to end 2022. For example, when Solds are down, which they are but is typical during this time of year, generally our inventory will grow however, that doesn't seem to be the case in this new market of ours.
I believe while some buyers may be pushed out of the market right now based on the pre approval process at 7% (with the stress test) and higher monthly payments, a lot of Local and Lower Mainland Buyers are taking this opportunity to purchase homes on the Sunshine Coast at a more relaxed pace, especially if they needed to sell in order to buy. They are also able to purchase at a lower price knowing that these interest rates aren’t forever.
In saying that, I am anticipating interest rates to continue to go up in the next couple quarters and balance out towards the end of 2023 but as mentioned above, if the inventory continues to decline like it did this month, i’m not sure we will see as big of a price correction as expected.
Below is a deeper dive into this month’s stats. Feel free to connect with me anytime to book a free consultation or market evaluation.
Listings on the Sunshine Coast has taken a hit this month and has actually gone down by 5% compared to last month. We typically see listings climb while solds decline; however, that is not the case and we already have a lower amount of inventory on the MLS as it is. I think this is proof that while interest rates were a factor during our crazy market, it was also just a lack of housing altogether.
As expected, Home prices on the Sunshine Coast has been on the decline since halfway through 2022 and this month is no different at just over 3% compared to October’s Market Update. To give some insight, on a $1,000,000 that would be about a $30,000 price difference. In spite of this, prices have still yet to hit last year prices and I'm not sure they will at all this year.
Days on Market
Sunshine Coast homes in a downward market tend to take a longer time to sell. Nonetheless, local Sunshine Coast Realtors are pricing homes effectively and getting these places sold in a timely manner. Today it takes on average 45 days to sell a home which is an almost 29% decrease compared to the previous month.
Solds on the Sunshine Coast BC has gone down by about 22% since October’s Market Update. While that may seem high, because the overall numbers are low, smaller movements can create big jumps. The 22% is infact only a decrease by 8 homes and is very typical for this time of year.
Detached home benchmark is $917,000 (5.4% increase YTD)
Average Days on Market is 45 (15.4% increase YTD)
Active listings is 274 (93% increase YTD)
Homes sold is 28 (55% decrease YTD)
Attached home benchmark is $612,300
Average Days on Market is 95
Active listings is 56
Homes sold is 4
If you're thinking of Buying, consider reaching out to a local mortgage broker and see what is the best option for you right now. A locked in rate for a shorter term or a variable rate mortgage do have their place in certain situations. Traditionally real estate activity is always at its lowest in December as well so as a buyer you could find some upcoming deals like my newest listing in Gibsons here.
Sellers, If you're considering selling, now is a good time to reach out to get a game plan in place for the pre spring market before the rush of competitors come on the market.