Sunshine Coast February 2022 Real Estate Market Report

Prices for homes on the Coast continued to increase throughout January and we don't see any indication of this slowing as we head into the back half of February.   There have been 52 new listings and 52 sales as of February 14, compared to 60 new listings and 45 sales total for all of January.  

The HPI (Household Price Index) for all property types on the Sunshine Coast reached $865,600, a 25.7% increase from January 2021.   Total inventory for the Sunshine Coast remains at an all-time low with only 119 homes on the market, down 42% from this same time last year.  

The low inventory only shows part of the picture though when understanding the pressure on home prices. The latest census data of population growth in BC, Vancouver and the Sunshine Coast shows an ongoing  and sustained demand for housing.   Overall, the Sunshine Coast Regional District (SCRD) saw a population increase of 7.3 between 2016 and 2021, with the number of residents growing from 29,970 to 32,170. There are a total of 17,982 private dwellings, according to the latest census.  This means 2200 people were added to the population of the Coast in the past 5 years.  This number does not include part-time residents who have vacation homes here or temporary workers who require short to mid-term rental accommodations.  Compare this to new home inventory being added to the market and a clear picture emerges of how price is affected by supply and demand.   There were only 500 brand new homes (including apartments and townhomes) brought to market and sold over the past 5 years.   With an average household having just over 2 people, this means that new home inventory will nearly need to double in order to keep up only population growth without addressing temporary workers and vacation homes.   Both Gibsons and Sechelt have a number of development applications underway, however water and infrastructure concerns will have to be addressed prior to any larger projects moving forward.  

18 Sales - 9 Houses, 3 Apartments & 4 Townhomes
HPI Price $896,800 + 24.3% ( all properties)
HPI Detached Homes $965,900 +23.1% | Townhomes $658,700 +26.8% | Apartments $475,800 +24%
Total Inventory: 38 Homes -45.7% | Days on Market: 5 -93.3% | New Listings: 24 -14.3%
Sales to Actives Ratio: .474 +74.9% (Very Strong Sellers Market)

The sales stats showed that sellers were able to achieve 97% of list price for detached homes in Gibsons, however 3 were for new homes being built in the Parkland development which includes GST.  Once this is adjusted for, 6 out of the 9 homes sold were for asking price or higher.  For townhomes, the competition was even fiercer with all 6 townhomes seeing multiple offers and selling for up to 12% higher than the list price.   

3 Detached House Sales -40%
Median Sale Price $1,351,100 +13.9%
Total Inventory: 4 Homes  +16.7% | Days on Market: 22 -48.8% | New Listings: 2 -50%
Sales to Actives Ratio: .429 -48.5% (Very Strong Sellers Market)

With a mere 4 homes currently listed on the market, Roberts Creek is one of the most exclusive areas to purchase a home in.  This is reflected in the purchase prices in January sales where sellers were able to achieve an average of 104% of their list price.  Current homes available range from a 4 BR home on 2.47 acre listed at $1,199,900  to a 4.64 view acreage with 2 homes listed at $2,880,000.  

17 Sales - 16 Houses, 0 Apartments & 1 Townhome
HPI Price $807,800 + 25.9% ( all properties)
Detached Homes $834,100 +26.1% | Townhomes $640,400 +30.1% | Apartments $596,200 +19.5%
Total Inventory: 44 Houses -53.2% | Days on Market: 57 -20.8% | New Listings: 10 -61.5%
Sales to Actives Ratio: .409 +28.2% (Strong Sellers Market)

In January we predicted that Sechelt would experience higher increases this month. This was borne out with the HPI breaking $800,000 for the first time ever.   The HPI for detached homes rose $11,000 over the previous month in December and homes consistently sold for full asking price.  The average price for a city lot is now in the low $400,000's, and with the cost to built reaching over $400/ft,  a new 2000 sq ft home would be $1,200,000 - $1,300,000, signalling that we have not seen the end to home price increases.

3 Sales - All detached homes
HPI Price $900,300 + 28.4% ( all properties) | Detached Homes $905,200 + 28.3%
Total Inventory: 7 Homes -41.7% | Days on Market: 33 -64.1% | New Listings: 5  -28.6%
Sales to Actives Ratio: .429 +2.9% (Strong Sellers Market)

With only 5 homes currently for sale, purchasers looking to move to this forested beachside community will need to consider bare land as a viable alternative.  There are currently 10 bare land properties for sale, listed in the high $400's to high $500,000's. For purchasers looking for a home in Halfmoon Bay, these lots could provide a good opportunity to own acreage and build a new home for a comparable price to established properties.

5 Sales +150%
HPI Price $832,900 +30% (Detached Homes)
Total Inventory: 13 Detached Homes -38.1% | Apartments 2 +100% | Townhomes 1
Days on Market: 45 -59.5% | New Listings: 6 -14.3%
Sales to Actives Ratio: .313  +172.2% (Sellers Market)

In our previous market report we predicted that land prices were going to experience upwards pressure as home values had risen to a point where building a new home is a viable alternative.   This prediction bore out. Of the 4 land sales recorded in January, sellers achieved 105% of list price. 

At York and Associates, Royal LePage Sussex we understand that a hot market can cause stress for both buyers and sellers. We closely monitor the market to ensure our intel is the most up-to-date so our clients are ensured of accurate and timely information about market conditions for each type of home and price range.
Email us or call us today at 604-817-7173 to find out what your home is worth in today's market or how we can help you buy the home of your dreams.