Home Values Based on Square Footage There have been a lot of unexpected changes this past year with everything going on. Looking at the rock bottom interest rates, working from home making the 4th or 5th bedroom or den all the more appealing. Consumer habits are changing, people are going bigger now. We have seen prices increase this year, and the low supply creating a frenzy of activity for the buyers actively looking as they jump on the next available home that meets their needs as soon as it hits the market for asking price, FOMO (Fear of Missing Out) has been alive and well in the real estate market over the past 6 months in the Okanagan. When a home sells it is generally a reflection of three factors
1.Location 2. Size 3. Condition One way to value your home is to use the price per square foot ratio. When looking at homes on the MLS the square footage only accounts for the finished square footage, it does not take into account unfinished basements, garages or enclosed patios.
Below is a breakdown of how the price per square foot has changed over the last few years. This is an indication of list price and not sale price given limitations on how the stats can be pulled. The sale price compared to list price is at 98.4% of the list price.
Not paying attention to the steep Mount Boucherie incline on the right, as that is only an indication of the asking price and not the sold price in November, the market has remained somewhat level with years prior based on price per square foot. Lumber costs are increasing which is making it tougher for new builds to keep costs down, which will transfer over to the end consumer in list price and new higher-end builds just released can be a reason for the higher price per square foot increase in November, just to name a few. 2020 so far has seen an average list to square foot ratio of 35, 853% or $358/sq ft for Single Family Homes in the Central Okanagan. Using the 98% of what homes are selling for compared to list price the value is around $350/sq ft. For strata buildings, some of the effects on pricing depending on how well the building is run, amenities, and any rules and regulations that might make it tougher for people to buy in the strata (age restriction).
Apartments have seen quite the increase as well. The average price per sq ft for 2020 was listed at $399. Using the 98% sale price compared to a list price that homes are selling for is $391/sq ft. These values are not perfect they actually are likely inflated, for the most part, they only take into account the wide range of the market and not individual locations and builds. However, gives you a sense of one way to price a home. If you do want a personal price per square foot for your area. Send me an email and I will send you a personalized one to help you get an idea of what homes are selling for.
Mark Coons
Coldwell Banker Horizon Realty
250.801.0361