Market Update - September 2023

As summer gracefully exits the scene, the Sunshine Coast, BC housing market is experiencing some intriguing shifts, courtesy of fluctuating borrowing costs. The Real Estate Board of Greater Vancouver (REBGV) brings us the latest insights, with residential home sales totaling 41 in August 2023, marking a substantial 46.4 percent increase from the 28 sales recorded in August 2022. Nevertheless, these figures remain 22 percent below the 10-year seasonal average of 53 sales.

The last couple of years have undoubtedly been interesting in our real estate market. Borrowing costs have been on a rollercoaster ride, reaching levels not seen in many years. Despite dire predictions, the housing market has remained resilient, showcasing robust sales and year-to-date price gains exceeding 10 percent across the board.

Active Listings:

With the government holding interest rates steady and homeowners savoring the waning days of summer, we've observed a slight decrease of just under 4 percent in active listings. Traditionally, the fall season brings an uptick in listings as rain refreshes gardens, and buyers shift their attention from vacations to house hunting. However, it's worth noting that we're still up by a significant 18.3 percent compared to this time last year, although this increase may not be enough to counterbalance the impact of high interest rates.

Prices:

Once again, prices have dipped, this time by 3.93 percent, settling at a median price of $894,200. This price adjustment is likely a reflection of the ongoing influence of interest rates and lenders' qualification criteria. Surprisingly, despite the high interest rates, we've only seen a modest 6.3 percent decrease in median sale prices compared to 2022.

Days on Market:

The number of days homes spend on the market has decreased, signaling that well-priced properties are selling more quickly. Presently, the average time to sell a home is 41 days, a clear indicator of a robust market. It's important to note that while this is 7.9 percent slower than this time last year, we must consider the buying frenzy that occurred as buyers rushed to secure properties at lower interest rates, anticipating an increase.

Solds:

The number of homes sold has seen a significant increase, rising from 36 to 41, a substantial surge of 13.88 percent. The allure of the Sunshine Coast during the summer months attracts tourists who often develop a deep affection for the area, contemplating it for vacation properties, future retirement homes, or permanent relocation. However, it's worth noting that historically, sales tend to slow down as we approach the new year. Remarkably, we find ourselves at a staggering 46 percent increase in sales compared to last year, adding an interesting twist to the market dynamics.