02-28-2014, 02:52 PM
The Coast Reporter’s January 24, 2014 Real Estate Weekly included an extra Kenan MacKenzie “Real Estate Reflections” and I’ve decided it should kick off this new thread. It is quoted in its entirety and I’ve followed with a few reflections of my own.
Yes, as the BC Oracle would say, “Wow.”
What do I say? “Wow, talk about living in a bubble and I don’t mean real estate.” This would be all fine and dandy if the SC was cut off from the rest of the world and therefore not subject to any external economic forces. In my opinion, the only agents showing with some grasp on realty are Terry: “pretty similar to 2013 but showing a strong start with lower price range on the move” and Craig: “more of 2013, buyer’s market." Yep, more of 2013 as prices continue to drop.
John, the agent whose handling Watermark got all excited with the Watermark’s first flip and it was a whopper. So, what happened afterwards? Well, the other owners trying to flip jacked their prices and they’re still sitting there unsold. As well, the developer jacked up prices on some of the units and those ones haven’t moved either. There have been three further unit sales in January but not at $730/sf and not at those jacked up prices.
Gail says “best January in 6 years”. Well, that is likely so if you are looking at “all types” because it’s been the best January for townhouse/condo sales since 2008. If all January’s detached sales go through there will be 28 (Median price: $366,500) which betters January 2010 sales of 27 (Median price: $459,900); so, volume up, value down. Yippee!
So, lots of cheering over December and January sales. Unfortunately, February looks like is going to suck.
Quote:Optimism abounds for 2014
I write my opinions a fair bit in the column so I thought to start the year off I would ask some of my Real Estate colleagues what they thought 2014 would bring.I myself believe the market has shifted but I want to caution sellers, it does not mean that prices are on the move. It took a year or more in the previous cycles to see a price shift. First we have to work thru the excess inventory before demand will push price.
- John: “very optimistic, 2013 ended well and January has been the busiest in years, first resale in Watermark sold in 57 days for approx. $730 a square foot“
- Gail: “best January market in 6 years, volume up”
- Becky: “busy January more positive consumer confidence, calls coming in”
- Jon: “the needle is pointing up”
- Pat: “markets are on the turn due to an economic upturn”
- Terry: “pretty similar to 2013 but showing a strong start with lower price range on the move”
- Ali G: “huge difference over last year phones have been busy”
- Kate: ”pent up demand was showing on Boxing Day”
- Craig: “more of 2013, buyer’s market great time to buy”
- Ali K: “sales activity was building in December and has continued into January”
- Susanne: “getting calls from back east, and retirees are more serious”
- Rhonda: “more urgency”
- Tracey: “buyers have discovered deals on the coast and the investing in the US seems to have ended with investors moving their money back home”
All the right ingredients are in place for a strong 2014. Mortgage rates will stay at record lows or even push lower. Garry Marr for the Financial Posts writes ”Falling bonds yields could push mortgage rates lower in coming weeks as banks compete in the spring housing markets, traditionally the strongest real estate period of the year” Sechelt should see the start of some large construction projects over the year, which will bring some badly needed jobs to the coast. Baby Boomers are retiring and what better place than our little paradise on the Sunshine Coast. The Sunshine Coast has some great buying opportunity for someone looking for a great deal, history shows us that it will not last and the Seller will be in the driver’s seat.
Yes, as the BC Oracle would say, “Wow.”
What do I say? “Wow, talk about living in a bubble and I don’t mean real estate.” This would be all fine and dandy if the SC was cut off from the rest of the world and therefore not subject to any external economic forces. In my opinion, the only agents showing with some grasp on realty are Terry: “pretty similar to 2013 but showing a strong start with lower price range on the move” and Craig: “more of 2013, buyer’s market." Yep, more of 2013 as prices continue to drop.
John, the agent whose handling Watermark got all excited with the Watermark’s first flip and it was a whopper. So, what happened afterwards? Well, the other owners trying to flip jacked their prices and they’re still sitting there unsold. As well, the developer jacked up prices on some of the units and those ones haven’t moved either. There have been three further unit sales in January but not at $730/sf and not at those jacked up prices.
Gail says “best January in 6 years”. Well, that is likely so if you are looking at “all types” because it’s been the best January for townhouse/condo sales since 2008. If all January’s detached sales go through there will be 28 (Median price: $366,500) which betters January 2010 sales of 27 (Median price: $459,900); so, volume up, value down. Yippee!
So, lots of cheering over December and January sales. Unfortunately, February looks like is going to suck.