Spring real estate season, the best time to buy and sell a home, is looking good for Powell River. No abatement is in sight, according to Powell River Sunshine Coast Real Estate Board president Neil Frost.
“We're expecting a busy spring market,” said Frost. “We've had a couple of strong, strong years and we're anticipating that will be the trend.”
April confirms the optimism. There were 33 residential sales, but the real story is in the percentage price increase between April 2017 and 2018.
The average price for a single-family residential home in Powell River last month was $385,732, a 15.5 per cent increase from April 2017.
The jump is more noticeable in the median monthly selling price for single-family residential. Prices went from $295,300 in 2017 to $370,000 this year, a jump of 25.3 per cent.
Total residential sales in April amounted to $11,639,900.
Frost said he anticipates prices will continue to be up and that volume will be down slightly.
“We've had a lack of inventory over the last couple of years,” he said, “that's what's been forcing prices up and that's going to continue.”
A development boom in Powell River is not keeping up with the demand for inventory and housing remains concerning for the real estate industry, according to Frost.
“We need more housing of all sorts, for sale and for rent,” he said. “I don’t think they can build the developments fast enough; as long as it's done in a sustainable way and something that's going to complement the area.”
On the horizon, Frost said the industry is concerned about new provincial rules that come into effect on Friday, June 1.
“They are meant to protect the consumer but in fact are going to limit their ability to choose and work with the realtor they want to work with.”
Another factor that could affect the market is the government’s speculation tax on out-of-province and foreign buyers. Powell River is exempt from the tax for now, but that could change if offshore and domestic real estate speculators set their eyes on local real estate.
