Interest rates, inflation concerns, and newly proposed U.S. tariffs are all playing a role in shaping the housing landscape. However, despite these uncertainties, buyer activity remains strong, and one emerging trend is particularly noteworthy—an increase in interest from U.S. buyers.
Unlike Vancouver and other major Canadian markets, the Sunshine Coast does not have a Foreign Buyer Tax or Empty Home Tax, making it an attractive option for American investors and retirees looking for waterfront properties, vacation homes, or a more relaxed lifestyle. With the Canadian dollar remaining relatively low against the U.S. dollar, American buyers are seeing great value in our market, further fueling demand.
Short-Term Market Surge: Why Buyers Are Acting Now
Many experts predict a short-term boost in market activity as buyers move quickly to secure financing before conditions shift again. With interest rates expected to decrease in the near term, but inflation concerns looming, buyers are looking to take advantage of today’s market while they can.
In Greater Vancouver, February saw an increase in sales activity, up 17.7% from January, while average home prices rose slightly to $1,224,858. This signals renewed buyer confidence, though prices remain lower than last year due to continued affordability challenges. On the Sunshine Coast, well-priced homes are selling, particularly those in desirable locations with lifestyle appeal—such as waterfront properties and homes with short-term rental potential.
At the same time, proposed U.S. tariffs on Canadian imports could introduce new cost pressures, particularly for building materials like lumber and steel. If enacted, these tariffs could make new construction and renovations more expensive, which may push home prices higher in the long run.
What This Means for Sellers
For homeowners thinking about selling, the current increase in buyer activity—both locally and internationally—creates an opportunity to maximize value. With more U.S. buyers entering the market and Canadians acting quickly before rates shift, well-positioned homes are drawing strong interest.
However, pricing remains key. Overpricing could lead to stagnation, while competitively priced homes—especially those that highlight lifestyle benefits like ocean views, walkability, or proximity to marinas—are moving quickly. Sellers who invest in curb appeal and work with an experienced real estate team to market their home effectively are best positioned to attract serious buyers.
Advice for Homeowners Considering Refinancing
For those not looking to sell but hoping to secure a better mortgage rate, experts strongly advise refinancing now while rates remain relatively stable. Many financial analysts recommend locking into longer terms to ensure predictability, as inflation could push rates higher later in the year.
Looking Ahead: What to Expect in the Coming Months
As spring unfolds, the Sunshine Coast real estate market is expected to remain active, especially with increasing interest from U.S. buyers and investors. The lack of additional taxes on foreign buyers makes our region a unique and attractive option compared to Greater Vancouver and other high-tax areas.
For anyone considering buying, selling, or refinancing, now is the time to strategize. If you’d like a personalized market analysis or guidance on navigating this evolving market, we’re here to help.