Flipping taxes
Starting last month, our local Sunshine Coast real estate market is subject to provincial federal flipping taxes. This likely won't impact a ton of sellers but if you're skilled at buying, renovating, and selling for a profit, you'll want to talk to your accountant, lawyer, and Realtor to see how these twin taxes could affect a sale.
Help for first-time buyers
As flippers are being punished, first-time buyers are being incentivized to jump into the real estate market.
The cap for an insured mortgage has increased from a $1,000,000 to $1,500,000 to first-timers. They can also push our their amortization period to 30 years. This will allow people to qualify for more debt, which isn't necessarily a good thing but I see it as a stop gap measure to allow more people to get into the market. I don't know that this will have a major impact on the Sunshine Coast. We do see some first-time buyers but our primary buyer group is retirees who have typically owned real estate previously.
Foreclosures on the rise
An unforeseen change has been the number of foreclosures I'm seeing. I'm chalking this up to interest rates being higher than they were five years ago which means some homeowners are struggling to manage their debts. I’ve seen more foreclosures in the last 60 days than I have over the past couple of years. These properties will add to housing inventory and may keep downward pressure on prices.
Secret Beach near Gibsons, BC
Buyers: Be ready and be strategic
The Sunshine Coast market may still be tilted slightly in favour of buyers, but that doesn’t mean it’s time to relax. Buyers need to have their ducks in a row. Get your mortgage pre-approval in place, have your deposit ready, and be prepared to move quickly if you find the right property.
If you’re renting month-to-month and you’re pre-approved, you’re the ideal buyer right now. This flexibility allows buyers to wait for the right property at the right price without being pressured to overpay.
I’m encouraging my buyers to make price appropriate offers on properties. If you see a house you like but think it’s listed too high, work with your agent to submit a well-reasoned offer based on comparables. On multiple recent occasions, I’ve had sellers come back weeks after my buyers made their initial offer, asking if the deal can be resurrected. Each time that’s happened, though, my buyers had already moved on.
Pebbles Beach in Gibsons, BC
Sellers: Price it right or don’t bother
My advice for sellers is straightforward: if you don’t need to sell and you’re not motivated to sell, don’t bother listing your property. If you’re just testing the waters or hoping for top dollar, it’s better to wait. Overpricing a property can lead to a long, frustrating process of chasing the market down, ultimately resulting in a lower sale price.
For those who MUST sell, it is critically important to price your home at fair market value. Don’t try to get what the property was worth two or three years ago. If you’re selling and buying in the same market, prices will balance out. But if you’re looking to exit entirely, don’t wait too long. Take your lumps now rather than risk greater losses later.
Davis Bay Pier, Davis Bay, BC
Commercial real estate resilient
While residential real estate has faced some headwinds, the commercial sector on the Sunshine Coast remains active and the market has been buoyed by several trends.
We’re seeing a lot of demographic-appropriate businesses open on the Sunshine Coast. Things like mobility/accessibility aides, chiropractors, and physio clinics moving into commercial spaces with the goal of serving retirees. At the same time, while some small businesses are struggled, an increasing number of franchises are considering the Sunshine Coast.
Murder in a Small Town
The Fox series Murder in a Small Town will return to Gibsons to shoot its second season. These projects bring short-term commercial leasing opportunities and a bit of Hollywood buzz to the Coast.
Looking ahead
While the market remains in flux, there’s a sense that change is on the horizon. The next six weeks could bring a pickup in activity, mirroring trends in nearby North Vancouver. For now, buyers and sellers alike should focus on preparation, pricing, and patience.
CALL TONY TODAY
If you’re not already working with an agent, call me when you’re ready to buy or sell and I’ll guide you through the busy and competitive real estate market on BC’s BEAUTIFUL Sunshine Coast.
Tony Browton - TeamTrueBlue.ca
Personal Real Estate Corporation
RE/MAX City Realty (Gibsons)
Mobile: 604-418-2695
Email: Click here to email Tony
Personal Real Estate Corporation
RE/MAX City Realty (Gibsons)
Mobile: 604-418-2695
Email: Click here to email Tony
⚠️ DISCLAIMER: This blogpost is not intended to cause or induce breach of any existing agency agreement.