Well, ready or not we are into a New Year. Although every year we often have dreams and hopes of having an even more fulfilling life, and shedding a few pounds- this time of year also gives us time to take stock and look back on the year that just finished; and if you are a Real Estate nerd like me, compare that year to other years to see what trends might be occurring.
For the full 2018 stats without my editorial, check here: http://www.rockieswest.com/wp-content/uploads/2018/10/SalesStats.pdf
For the full 2017 stats (fun to compare), check here: http://www.rockieswest.com/wp-content/uploads/2018/10/SalesStats2017.pdf
So without further delay... 2018 was a lot like 2017, and that's not a bad thing, and both years are better then 2016:
- 2018 Total # of all types of units sold in the Columbia Valley: 437, with an average selling price of $297,000
- 2017 Total # of all types of units sold in the Columbia Valley: 451, with an average selling price of $318,000
- 2016 Total # of all types of units sold in the Columbia Valley: 368, with an average selling price of $306,000
Broken Down Further by geographic area and property type:
Invermere Sales:
Attached (condos/townhouses):
- 2018: # of sales 48, average selling price $253,000
- 2017: # of sales 40, average selling price $249,700
- 2018: # of sales 57, average selling price $414,500
- 2017: # of sales 42, average selling price $435,600
- 2018: # of sales 17, average selling price $187,600
- 2017: # of sales 18, average selling price $140,400
Invermere Rural Sales (everything outside the municipalities of Invermere, Radium, Canal Flats):
Attached (condos/townhouses):
- 2018: # of sales 72, average selling price $213,900
- 2017: # of sales 71, average selling price $233,500
- 2018: # of sales 86, average selling price $535,700
- 2017: # of sales 111, average selling price $485,800
- 2018: # of sales 39, average selling price $161,400
- 2017: # of sales 38, average selling price $211,400
Radium Sales:
Attached (condos/townhouses):
- 2018: # of sales 56, average selling price $184,700
- 2017: # of sales 60, average selling price $175,000
- 2018: # of sales 17, average selling price $359,700
- 2017: # of sales 17, average selling price $452,400
- 2018: # of sales 4, average selling price $95,100
- 2017: # of sales 0
Canal Flats Sales:
Attached (condos/townhouses):
- 2018: # of sales 3, average selling price $148,800
- 2017: # of sales 5, average selling price $132,000
Detached (single family homes):
- 2018: # of sales 16, average selling price $228,800
- 2017: # of sales 11, average selling price $219,700
Land:
- 2018: # of sales 19, average selling price $80,200
- 2017: # of sales 8, average selling price $109,300
Conclusion
The average sales prices can be a bit misleading, because they depend on the types of property that were available for sale, and the smaller the number of transactions the more that high or low priced sales can influence the average.
The total number of units sold is a very good indication of the level of interest and activity. The interesting thing is that the peak of the 'real estate boom' in the Valley, 2007 saw the record number of 452 sales, the years that followed had some drastic volume decreases (2008: 257, 2009: 216, 2010: 229, 2011: 187, 2012: 205, 2013: 300, 2014: 326, 2015: 315, 2016: 368, 2017: 451, 2018: 437). Not all properties have had the prices return to 2007/2008 levels, especially for some multi-family and land, there can still be discounts of almost 40% from previous purchase prices, however the value of single family homes is close to previous peak levels, and has proved to b.
Another interesting fact, of the 437 sales in 2018, 307 of them (or 70%) of the sales were for $350,000 or less. It appears that a lot of the interest in listings right now are coming from early retirees or people looking for year round property, although there is still interest on traditional recreational property (lake views, lake access or lakefront). There is strong local interest, especially for town homes or single family homes at lower priced levels. The lack of rentals and near zero rental vacancy rate does seem to be motivating some people into thinking about buying, or about others thinking about getting into property rentals.
There are some uncertainties about the economic conditions in Alberta & Calgary in 2019, this could have an impact on recreational property purchases, however it appears that the fear and chill that was experienced in early 2018 because of the potential "speculator tax" (which is not coming to our area) has passed.
It has been suggested that the current market is a "Buyer's Market". Although it is clear that is not a "Seller's Market", as many Buyer's are taking their time and do not sense a great deal urgency, the other reality is that there is not an abundance of selection of product on the market, and many Sellers are quite firm in their pricing. I actually believe we are presently in a "Balanced Market", neither Buyers or Sellers have a specific advantage. Although we might see a decline in some volume in 2019 because of economic conditions in Alberta, I do not think we will see a drop in prices or a complete evaporation in demand.
Quality homes, land in good locations, and well built multi-family units with reasonable strata fees will still be demand! And compared to the pricing and availability in other nearby regions, including Revelstoke, Golden, Kimberly, and Fernie- what is available in and around Invermere & the Columbia Valley represents excellent value and opportunity!