According to BC Real Estate Association statistics for July, the average price for a home in Powell River is $425,811, up 34 per cent from a year ago.
But those numbers are wrong, skewed by a $2.4-million sale on Savary Island that makes the average price closer to $395,000 compared to $390,000 for the same month last year, according to Powell River Sunshine Coast Real Estate Board president, Neil Frost.
“I'm still saying we're heading toward a more balanced market,” said Frost. “It's not the lopsided sellers’ market it was a year ago. It's not as frenetic. But it's not a buyers’ market. It's levelling off a bit and it's not as heavily favouring the seller. Prices have never been higher. It's still a great time to sell.”
As with the average price, the total dollar amount of real estate sales in July has to take into account the Savary sale. The dollar volume indicates an 8.3 per cent increase from $11 million in July 2017 to approximately $12 million last month.
“July surprised us,” said Frost. “We started off weaker than we thought. We knew the volume was going to be down but July was quite busy.”
Sales have been affected by new mortgage eligibility rules but not as much as in the Lower Mainland, according to Frost.
“We've got people whose buying power has gone from $370,000 to $300,000 or $350,000 to $300,000,” said Frost.
Buyers can still find a home for $300,000 in Powell River but the mortgage stress test is a concern, he said.
“The average price is pushing $400,000 and that's just a decent family home,” said Frost. “It's nothing fancy. People are having to settle or do what they used to do and start at the bottom and make compromises. Maybe all the bedrooms aren't all on the same floor, maybe it isn't as big as you wanted. Maybe it doesn't have an ocean view.”
Frost said Powell River is not in freefall, real estate is still affordable here.
“We still have 50 per cent of people coming from out of town and people coming here looking for investment properties.”
