As we head into the final months of 2024, the Sunshine Coast real estate market continues to defy expectations, showing resilience in the face of what would typically be considered a buyer’s market. Despite challenges, such as higher interest rates earlier in the year and a cautious buyer sentiment, the market is holding strong. Here's a closer look at the trends shaping the local market this November.
As always, whether you're looking to buy or sell, having the guidance of a skilled real estate agent who understands the nuances of the Sunshine Coast market will help you navigate the complexities of this dynamic environment.
Steady Price Growth Amid Buyer Caution
The Home Price Index (HPI) for the Sunshine Coast has reached $843,300, marking a 2.2% increase compared to the same time last year. In a typical buyer’s market, one might expect home prices to soften, but instead, we are seeing a continuation of price growth. This resilience is somewhat surprising given the more cautious stance taken by many buyers recently, but it underscores the region’s ongoing appeal. The market’s strength could be attributed to a variety of factors, including low supply, pent-up demand, and the continued desirability of the area as a destination for both primary residences and vacation homes.
Total inventory has seen a significant decrease, dropping 14% from September to October, with the number of active listings falling from 561 to 483. This drop in available properties is indicative of a market that’s tightening slightly, which can put upward pressure on prices. However, there’s still 12% more inventory compared to last year, meaning potential buyers still have options to explore.
On the sales side, the number of properties sold increased from 45 in September to 62 in October, a jump of 113.8% compared to October 2023. This is an unexpected surge, as historically, we often see a slowdown in sales as we move from September into the fall months. The recent uptick in sales is a clear sign that more buyers are returning to the market, likely motivated by recent interest rate cuts and a desire to lock in a purchase before the year ends.
Interest Rates: A Catalyst for Renewed Buyer Activity
Recent interest rate decreases have played a key role in reigniting buyer interest. After a period of higher rates that led many buyers to adopt a wait-and-see approach, these cuts have made borrowing more affordable, especially for those looking to finance their homes with a mortgage. This shift has drawn more buyers off the sidelines, eager to take advantage of improved lending conditions.
The increased activity in October shows that many buyers are feeling more confident about entering the market again, and with limited inventory, competition is starting to heat up. Those who were waiting for more substantial price reductions may now be realizing that the time to act is sooner rather than later.
Foreclosures: A Growing Trend
One noteworthy development in the Sunshine Coast market this month is the rise in foreclosures. There are currently at least six foreclosure properties available, a noticeable increase given the past few years where foreclosures were relatively rare. In fact, many months have passed without any foreclosure properties listed on the market at all.
For buyers looking to score a bargain, foreclosures present an opportunity, but they come with complexities. Foreclosed homes are often sold as-is, meaning buyers need to be prepared for potential repairs or legal hurdles. However, for those willing to navigate the process, these properties can represent significant savings. Working with an experienced realtor who understands the intricacies of purchasing a foreclosure can make all the difference in ensuring a smooth transaction.
Looking Ahead
As we approach the end of 2024, the Sunshine Coast real estate market seems poised for a strong finish. Despite some of the headwinds we’ve seen over the past year, including higher interest rates and market uncertainty, demand remains steady, and the overall outlook for the region continues to be positive. The combination of rising prices, a slight tightening of inventory, and the return of buyer activity suggests that the market could stay competitive, especially as we move into 2025.
For buyers, this means that while there are still opportunities in the market, acting sooner rather than later could be key. Sellers, on the other hand, may find that with the right strategy, the current market offers a unique chance to capitalize on price growth and heightened buyer interest.
Market Re-Cap by Region:
Gibsons
HPI: $850,700 (+1.3%) | Listings: 128 (+9.4%) Sales: 23 (+91.7%) Months of Inventory: 5.6
Gibsons saw a dramatic increase in sales over October 2023 and over double the sales in September with 23 homes sold bringing Gibsons up nearly to a balanced market. However, new listings were also up 73% from the year prior showing that buyers still have an abundance of options.
Roberts Creek
HPI: $1,028,100 (+1.1%) | Listings: 31 (+6.9%) | Sales: 3 (+50%) | Months of Inventory: 10
Roberts Creek has seen an uptick in sales compared to an extremely slow year, but overall sales remain far below average, with about 10 months of inventory reflecting an overall Buyers Market.
Sechelt
HPI: $799,900 (-0.7%) | Listings: 179 (+17%) | Sales: 27 (+200%) | Months of Inventory: 6.6
In Sechelt, the HPI has increased slightly, with a significant decrease in listings from 200 in the month. The increase of sales has brought Sechelt closer to a balanced market but with nearly 7 months of inventory available, buyers still hold a slight upper hand.
Halfmoon Bay
HPI: $957,900 (+2%) | Listings: 56 (+21.7%) | Sales: 5 (-%) | Months of Inventory: 11
While Halfmoon Bay showed an increase in the HPI , the number listings continued to increase and with sales flat to last year, this area remained firmly in buyer market territory
Pender Harbour
HPI: $811,900 (-2.6%) | Listings: 76 (+4.1%) | Sales: 4 (-20%) | Months of Inventory: 19
In Pender Harbour, the HP has risen despite increased listings and flat sales, indicating buyers are still willing to pay more for good value. Sellers need to be cautious with their pricing, as overpriced properties may struggle to attract interest in a slower market. Buyers are focusing on homes priced competitively, making it crucial for sellers to align their expectations with current market conditions.