September 2021 Update
Sales in the Powell River residential real estate market were up slightly at 27 in September from last month’s 24. The past three months have been at about this level which is just over half the sales of the same period last year. This year’s summer numbers are roughly on par with previous years but obviously well down from last year. The current listings available isn’t at an all-time low at 101, but in the high demand price range for single family homes - $400 - 650,000 - there are about 5 homes! There is still tons of buyer pressure with about 60% of sales going to out of town buyers - primarily from the Lower Mainland. However, persistence pays off! I’ve worked with quite a few clients who lost out a few times in competing offers, but eventually purchased a home that works for them. It looks like listings will be few before Christmas, but we should see some coming on in the next months. Sometimes this can be an opportunity when other buyers are distracted with Christmas plans, etc. Buyers, hang in there! For Sellers, it continues to be a strong sellers’ market - an ideal time to list!
Condos…
For the last many years, the only condos available were built in the 90’s, but recently we’ve seen a flurry of new condos coming on the market. With rising prices, it’s become profitable for builders to take advantage of this market. It also creates an opportunity for greater selection for buyers. The prices for the new ones aren’t cheap, but new or old, condos have been a lower priced option in markets all over BC. For new buyers, socking away money for a downpayment on the dream home, the interest rate on a savings account will never keep up with rising prices. Getting into a condo can be a stepping stone to build equity for the dream home…even in Powell River!
Rent Increases in January 2022
Rent increases will once again be allowed for the first time in 18 month due to a temporary prohibition by government. Many tenants lost their jobs or faced reduced income during the pandemic and government wisely sought ways to lessen the impact on society generally. The rent increase prohibition was one of these. While not usually receiving a sympathetic ear, it’s been tough on landlords as well. Many are individuals who use the rental income on a suite to help pay mortgage costs which have not been forgiven. Similarly, property taxes, insurance, water and sanitation and hydro have all risen well above the 1.5% increase that will be allow. It makes investment properties less attractive to buyers and hence, can reduce the number of rental units available.