Sunshine Coast - Land Sales (2014 & Historical)

[Skook]

Nov 2014 SC Land Sales

There were 5 vacant lot sales in November: 1 in Gibsons, 2 in Sechelt and 2 in Pender Harbour. 2014 year-to-sales have already surpassed last year’s total sales (54) by a good margin and at this pace could pass 2013 total sales (65) by the end of December. However, 2011 total sales (75) remain out of reach.

November’s single lot sale in Gibsons is interesting and worth a more in-depth look. The lot is actually outside the Town of Gibsons, but Elphinstone (Area E) is included in the Gibson real estate market area.

The land in question is Lot 9 Sunset Place located in what was Phase 1 of the Georgia Crest subdivision up Harry Road. The red arrow in the lower right image below indicates its southern coast location (the numbers indicate active lot/land listings in the area). Zooming in on the “13” showed there are currently 11 lots listed in what is Phase 2 Georgia Crest. The Georgia Crest site plan shows all the lots for Phase 1 (#s 1-31) and Phase 2 (#s 33-56). The red arrow indicates our Lot 9 Sunset Place.

I have no idea of the “provenance” of Lot 9 – in other words, how many times this “historical” half acre may have been flipped. I was able to ascertain that most recently it went on the market in March 2013 (V995123) at $149,000. The asking price was eventually reduced to $129,000. The lot was relisted in August 2014 at $129,000 and it sold in November for....drum roll, please...$122,000.

Now, I just so happen to have in my possession the June 2004 Georgia Crest Phase 1 Price Map which you can feast your eyes on below. Now, I think it is safe to assume that lot 9 likely sold for $124,900 which included the then 7% GST; so, the lot was roughly valued at $116,700.

Well, now, what do you think of that ten year return on investment if the seller was the original owner - beauty, eh?

Let’s revisit those Phase 2 Georgia Crest lots currently listed. Using SC Realtor Gary Little’s fantastic Interactive Real Estate Map, I hovered over and clicked on Lot 34 and you can see the nearly half acre lot is priced at $169,500; however, included in the images uploaded with the listing is the original 2007 Price Map and back then the lot was listed at $219,500. I’ve also added two pricing tables showing those 2007 prices and the most current.

My research seems to indicate that the $169,500 price has been around since mid-2010 and hasn’t budged since. Wow, a -22.8% drop in just three years – a fine example of what can happen to real estate and land value when there is an economic “shock” (2009 US-led banking crisis).

Now, it is important to realize Georgia Crest is in good company. You’ll find lots in Sechelt that likewise have been listed over 7 years and we won't even touch dear ‘ol Pender Harbour.