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Market Update - January 2022
Recap for 2021 and predictions for the Sunshine Coast in 2022
BC’s Sunshine Coast real estate market had an exceptional busy 2021 with MASSIVE price appreciation and a crisis-level shortage of supply. This is my perspective on what happened to the Sunshine Coast real estate market in 2021 and what buyers and sellers can expect in the first part of 2022.
Key points from the video
Young families vs retirees
BC’s Sunshine Coast has become a viable option for a younger demographic. Because the ferries were previously a huge barrier to market, the Sunshine Coast was undervalued in comparison to other regions across the Lower Mainland. I think these relocations to smaller communities are only going to continue. Assuming there are still COVID concerns, I can't see it changing in the short term.
[Young families and retirees] are competing with each other but it seems to me that the younger demographic has the deeper pockets. They're driving up prices and winning most of the bidding wars.
No foreign buyers’ tax or empty home tax
When investors look around our province, they look at the Sunshine Coast and see there’s no foreign buyers' tax, no empty home tax, and a disproportionate level of property appreciation that's anticipated to continue for a long time. The Sunshine Coast will likely see a lack of rental accommodation and housing for a prolonged period of time because local governments have been so reluctant to allow any planned development.
Have a plan before you sell
I say this to everyone: “Where are you going to go?” Don't just list your house thinking, "Oh, the prices are good and I'm going to be able to sell it." Because if you do sell without having a plan, and you end up taking a few months to find somewhere, you could conceivably price yourself out of the market.
Work with a local agent
[Buyers] need to be working with a local agent. The Sunshine Coast is a pretty big area and you’ll see that even local agents specialize in specific areas. I'll work all the way up to Halfmoon Bay, but 90% of my businesses is in Gibsons. I'm super dialed into that market.
HOUSE FOR SALE: 1523 Grandview Road, Gibsons, BC - $1,479,000
Private and secluded, 1523 Grandview Road in Gibsons is ideal for a family looking to relocate to BC’s beautiful Sunshine Coast.
Upstairs, you’ll find an incredible kitchen with a HUGE centre island and stainless steel appliances, and a spacious living room with a gas fireplace and a filtered ocean view. Downstairs is a large revenue/in-law suite. Use this ground floor as additional living space or rent it out as a mortgage helper. Or invite your parents or grandparents to live with you and make this home multi-generational.
You’re less than 400 metres to Bonniebrook Beach. This is the Sunshine Coast’s premiere summertime beach destination and is a must-visit for locals and visitors alike. And a short 5-minute drive from home brings you to the shops, restaurants, and schools of nearby Gibsons. Another 8 minutes down the road is the Langdale ferry terminal.
The entire Sunshine Coast real estate market is starved for inventory and there’s a TON of demand for properties just like this one.
Call me today at 604-418-2695 to schedule your viewing or to request an info pack.
BC Tax Assessment vs market value
BC Homeowners have now received their latest property assessments, but most do not know how this assessment relates to the actual current value of their home.
Assessed values come from BC Assessment. BC Assessment is a provincial Crown corporation that classifies and values all real property in British Columbia. Each year, BC Assessment sends property owners a Property Assessment Notice with the expected fair market value of their property as of July 1st of the prior year.
Market value, on the other hand, is the most probable sale price of a property in an open market between a willing purchaser and seller.
To get an idea of what your home is actually worth you really have two options:
1. The free option
The free option is to call three Realtors and ask each of them to provide a CMA (Competitive Market Analysis) of your property. Average out the three CMAs and that should give you a pretty good idea of what your home is worth.
Note that a CMA to a Realtor is something they prepare using factual data, but it is also a sales tool. Some Realtors will overvalue a property to secure a listing with the intention of reducing the asking price in the future. This is often referred to as “buying the listing” and is sometimes used by an agent to eliminate other Realtors competing for your business.
If you tell the Realtors doing the CMAs that you will only list with them for 90 days at a time, that will keep their analysis more accurate than those with 12-month listing contracts.
2. The paid option
While Realtors can offer a valuable perspective on a given property’s purported value, only a licensed appraiser can provide an official appraisal. Sellers may be satisfied to work solely with a Realtor, but most buyers will need an appraiser to verify property value for their financial institution to fund their mortgage.
The Realtor and appraiser may communicate about a given property, but a Realtor cannot influence the appraiser’s final valuation.
Prior to listing their home, a seller can hire an appraiser directly to get an idea of their home value. Prices for the service will vary depending on the size of the property in question but generally start around $450.
Call me at 604-418-2695 if you need a referral for an appraiser that services the Sunshine Coast.
5 things you'll HATE about a small town
Canadians have fallen in love with the idea of moving to smaller, rural communities. Whether this is a short-term COVID-related blip or a long-term demographic trend remains to be seen. However, if you’re planning on trading city lights for a small town, know what you’re getting yourself into.
There’s no place I’d sooner live than BC’s BEAUTIFUL Sunshine Coast but it is admittedly not for everyone. It's easier said than done but I recommend finding a way to spend time here to see if the Sunshine Coast is someplace you want to call home.
Low vacancy rates and travel restrictions make extended stays difficult but if you're going to spend hundreds of thousands (or even millions of dollars) on a home, you owe it to yourself to give the Sunshine Coast a "test drive" before buying.
If you’re not already working with an agent, call me at 604-418-2695 and I’ll tell you what I really think of life on BC’s Sunshine Coast.
Call Tony today!
If you’re not already working with an agent, call me when you’re ready to buy or sell and I’ll guide you through the busy and competitive real estate market on BC’s BEAUTIFUL Sunshine Coast.
⚠️ DISCLAIMER: This newsletter and its contents are not intended to cause or induce breach of any existing agency agreement.