April Market Review 2024 - Navigating a changing market

Spring brought April Showers and New Listings across the coast. However, with interest rates staying steady at the highest rates in years and new government policies causing change and uncertainty, buyers hung back while inventory to rose to levels not seen since 2020.

There were 454 properties for sale across the Sunshine Coast in April, a 29% increase over 351 listings last April. And while sales where up 16.1% from 56 to 65 homes sold this past month, this doesn't tell the whole story. A more important factor to consider is how many buyers are there for every home and how many sales occurred per listing. This gives us the sales to listing ratio, which is a better indicator of market activity and the direction that prices may go. In April 2024, this ratio was .14 compared to last year which had a ratio of .16. Anything below a .16 ratio is considered to be a buyers market and an indication that prices will soften.

This softening was apparent in the benchmark price for single family homes, which declined 2.1% when comparted over to April of last year,(from $887,400 to $869,100). Interestingly, townhomes and condo prices increased slightly, which we feel could be an effect from people seeking lower priced options because of the higher interest rates.

A study last year showed that 75% of buyers were holding off until interest rates get lowered before re-entering the market. Meanwhile, many sellers are now entering mortgage renewals, or looking at how the new legislation to short-term rentals, capital gains tax and the Tenancy Act may impact their properties values.  Many of these sellers are choosing to list now, which is further increasing the available inventory, causing properties to stay on the market longer as buyers are still hanging back.  And since homes are taking longer to sell, we're seeing a rise of offers that are "Subject to Sale". This means that the purchase of the new home is contingent on them selling their current home. It can be a risk for all parties if one of the properties fails to sell.

With this in mind, caution is recommended for sellers looking to aggressively price their homes. Well priced homes are still attracting buyers and we've seen several multiple offers on desirable properties Buyers looking to get a good price are recommended to come with financing in place and no subject to sell. This will allow to beat out any competition and have a stronger bargaining position

These stats are for the entire Sunshine Coast and each community here has it's own personality and market conditions. For details on anything specific, contact us at Manley.york@sothebysrealty.ca or call us at 778.229.7694