Real estate sales dropped considerably in September 2022 compared to the previous year.
Statistics from the Canadian Real Estate Association stated that home sales were 47.1 per cent below the five-year average, and 50.5 per cent below the 10-year average for the month of September in the local market.
“As expected, home sales came in well below average levels for this time of year and will likely continue to do so into early 2023, as buyers and sellers continue to negotiate around price amid rising interest rates,” said Neil Frost, president of the Powell River Sunshine Coast Real Estate Board. “New listings posted a healthy rebound from last September and came in right on par with typical levels for the month.
“As sales activity has fallen and new listings remained solid, the market has been rebalancing in favour of buyers. However, consumer confidence is shaky at the moment and we’re not going to see a wave of buyers return to the market just yet.”
Frost said statistics have caught up to what has been anticipated, which is the predicted price drop.
“Numbers are down and we’re starting to see that decline or retreat in prices,” he added.
He said there is a significant difference in sales numbers from August 2022 to September 2022.
“With low volume and high new listings to the market, we are starting to see prices retreat,” said Frost.
According to statistics from the local real estate board, in September 2022, there were 16 single-family homes sold, valued at $9,571,900. This compares to 27 homes, valued at $17,308,212, in September 2021.
In terms of mobiles and manufactured homes, in September 2022, two were sold, valued at $500,000, compared to one sold in September 2021, valued at $65,000.
There was one condo/apartment/duplex sold in September 2022, valued at $479,000, compared to seven sold in September 2021, valued at $2,790,400.
Total residential sales indicate there were 19 units sold, valued at $10,550,900 in September 2022, compared to 35 units, valued at $20,163,612 in September 2021.
Non-residential sales statistics show five parcels of vacant land being sold in September 2022, valued at $1,813,000, compared to six parcels in September 2021, valued at $3,567,300.
There was one industrial/commercial/institutional property sold in September 2022, valued at $365,000, compared to three sold in September 2021, valued at $1,259,400.
Non-residential totals show six units sold in September 2022, valued at $2,178,000, compared to nine units sold in September 2021, valued at $4,826,700.
Totals for residential and non-residential sales combined show 25 units being sold in September 2022, valued at $12,728,900, compared to 44 units, valued at $24,990.312 in September 2021.
In terms of the number of new listings for September 2022, on the residential side, there were 51, and on the non-residential side, 13, for a total of 64 new listings. The number of active listings at the end of September 2022 indicate 153 residential and 77 non-residential, for a total of 230 active listings.
The average selling price of a single-family home in September 2022 was $598,244, with an average of 39 days on the market, compared to $641,045 in September 2021, with an average of 36 days on the market. Frost said $600,000 is a fairly good representation of the price of a family home in decent condition.
“Mortgage qualifying continues to be a significant hurdle for many potential buyers as interest rates rise,” stated British Columbia Real Estate Association chief economist Brendon Ogmundson in a media release. “In addition, many trends that drove demand in smaller markets, such as remote work and the quest for affordable space, have faded in prominence. As a result, we see a stronger pullback in markets outside of major metropolitan areas.”
According to Ogmundson, year-to-date, BC residential sales dollar volume was down 24.2 per cent from the same period in 2021 to $68.5 billion. Residential unit sales were down 31.8 per cent to 67,547 units, while the average MLS residential price was up 11.3 per cent to $1.01 million.
