Sunshine Coast Real Estate – 2017 in Review & 2018 Forecast
As we near the end of the year, we’d like to pass along a few observations about the year that was, and look ahead to the year to come. 2017 was the first year in a long time that featured both an increase in price and a decrease in sales. It was all about supply vs demand. In simple terms, the supply hit historical lows while demand remained strong. The result? The price of an average home on the Coast is now $588,600 – up over 20% in 1 year. Interestingly, even though there were more sales overall in 2016, the market was more active in the last quarter of 2017. For 2018, there are opposing dynamics at play. On one hand, demand from Lower Mainland buyers should remain strong and the sales to list ratio still indicates a sellers’ market. On the other hand, there are, new, tighter mortgage rules coming in January which will reduce the amount buyers may borrow. That, along with current high prices and increasing interest rates will have a negative effect, especially on first time buyers. All things considered, we feel 2018 will see a similar number of sales as 2017, but it’s unlikely prices will rise at the same pace as previous years, if at all. Whatever happens, I’m here to keep a careful watch and keep you updated. Call me FIRST for all your real estate needs!
written by Mike Evans – RE/MAX Oceanview Realty