Sunshine Coast - Land Sales (2014 & Historical)

[Skook]

October 2014 SC Land Sales:

There were 7 bare land sales in October which is two less than the month before, but 4 up on October 2013. On a year-to-date basis, land sales are up +21.7% versus 2013, but down -1.8% versus 2013 and -20% versus 2011.

Those October land sales occurred in only two market areas: Sechelt (4) and Pender Harbour (3).

According to SC Realtor Kenan MacKenzie’s Real Estate Reflections in this week’s Coast Reporter Real Estate Weekly, at the current pace of sales there is a 78 month supply of listings (6.5 years). This is a substantial drop from last February when MacKenzie pegged the supply at 121 months (10 years).

So what is behind the quickening pace of SC land sales? There is one answer: price. Land is getting dirt cheap and sellers are willing to drop listing prices even further to get the sale. Here are a couple of examples from October:

• Lot 7 Beaumont Rd, Pender Harbour (V953257). 0.4acres with 100’ of waterfront on Hotel Lake. Listed in 2012 for $99,000. Sold for $86,000 (-13.1%).
  
• Lot 95 Higgs Cres, Sechelt (V952837). 0.72 acre oceanview lot in Orca Vista subdivision in southwest Sechelt. Relisted May 2012 at $172,900. Sold for $158,000 (-8.6%).
  

Orca Vista first saw the light of day back in 2004 and has developed slowly due to market conditions. This final phase sees 15 lots put on the market (2011/12) and according to the Re/Max Oceanview insert in November’s Sunshine Coast Real Estate Guide only 4 lots have sold. This can be updated now to 5 with the sale of lot 95.

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Today, there was a price drop on a 0.23ac lot in the Sandy Hook subdivision in the east Porpoise Bay area of Sechelt. Back in a March post, I highlighted the significance of the first sub-$100,000 lot listing in Farrington Cove in Pender Harbour. Well, that notable drop has long been surpassed in other SC market areas over the course of this year.

Lot 4 Sandy Hook Road is listed on PropertyGuys.com by the owners for $99,000 (List description indicates lot went up at $112,000 - $26K below assessment. In 2011, lot was assessed at around $149,000 and dropped $33,000 in 2012.). That listing gives the 2013 Assessment as $108,000 (it dropped a tad further in 2014). The lot also went up on MLS and on October 7 was relisted for $57,750 (V1088822). Despite that auspicious listing number with all its 8s and its low price it didn’t move; so, today the price was dropped to $49,900. We’re at -50% and counting. Given that there are other lots listed along that same road at $119,000 to $134,000, I think it is safe to assume that the owners of Lot 4 paid much more than $100,000. Unfortunately, I think Sandy Hook area and other outer areas hold little attraction for those now moving to the SC. However, these falling SC lot prices might be finally grabbing the attention of long term investors who just love holding land; and, in some areas of the SC it will be a very long term investment, indeed.