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November 2004:
The real estate market on the Sunshine Coast is clearly operating as a "Seller's" Market. This means there are more Buyers, seeking property, than there are Sellers, selling property. These conditions serve to increase prices, as buyers compete for a limited selection of available properties, to the benefit of the Sellers. Under these conditions, listings are in high demand & sell quickly. Searching for properties, without a Realtor, via the internet or newspapers can be very frustrating, as you consistently find attractive listings that have … already sold.
January 2005:
The uncertainty surrounding the November U.S. Presidential Election served to slow the pace, as buyers and sellers alike, in typical fashion, paused to await the outcome of the election. Soon thereafter, the market took an early hiatus, as our attentions turned to the Holiday Season, delaying any real estate activity to the new year.
Since November 2004 the market has definitely cooled. The volume of transactions has slowed, with the holiday season, and recovery appears to have been delayed by our unusually cold weather, followed by record level rains.
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As a result, current market conditions could best be described as a Transitional Market. While the number of transactions has slowed, there remain more buyers than sellers, which will continue to drive prices higher. As the number of new listings increase, approaching the spring season, we anticipate a more Balanced Market to be established. Should we not see the traditional onslaught of new listings over the next few months, we could see a return to a Seller's Market, with competing bids for a limited selection of properties and multiple offer scenarios.
It is important to recognise the impact of the Vancouver marketplace on Sunshine Coast Real Estate. The Sunshine Coast is in very close proximity to the most expensive Real Estate in all of Canada. Over 2004, every second buyer was from the Lower Mainland. We are a relatively small community, with only so many homes. While Sunshine Coast new housing starts are expected to increase this year, the magnitude of the Vancouver Market forces, not to mention the upcoming 2010 Olympics, will, no doubt, result in some variation of a Seller's Market, for years to come. Vancouver's rising employment growth and its strong economics are attracting immigrants from across the world. Record level low interest rates and the anticipation of rising rates are expected to continue to drive prices higher.
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