June was an interesting month for real estate sales on the Sunshine Coast! While we continue to see approximately 20% less demand compared to last year the market is still quite strong.
In June, Sunshine Coast detached market saw $40,000,000 in dollar volume which is down 35% from last year. Unit sales for June were also down 42% to 51 units sold.
Year to date we have seen a reduction in unit sales of 25% down to 276 and a reduction in dollar volume of 24% down to $197,000,000
The average price for a detached home is $784,000.00
The average days on market prior to firm contract is 62.
Total available listings are up 16% to 348 units.
The closing ratio, or the amount of sales versus available inventory, is 15% – this moves us from a seller’s market to a balanced market for the first time in three years.
Sunshine Coast attached market, including townhomes and condos, is faring much the same as the detached market. We enjoyed $5,800,000 in dollar volume which is down 40% from last year. Unit sales for June were also down by 38% to 13.
Year to date we have seen a reduction in unit sales of 16% to 90 and a reduction in dollar volume of 16% to $41,500,000.
The average price for an attached home is $442,000.
The average days on market to firm contract is 40.
Total available listings are up to 48 from last year’s 36.
The closing ratio, or the amount of sales versus available inventory, is 27% keeping the detached market firmly in seller’s hands.
Our land only market on the Sunshine Coastcontinues in the same vein. We enjoyed $3,000,000 in dollar volume which is down 52% from last year. Unit sales for June were down 45% to 11.
Year to date we have seen a reduction in unit sales of 14% to 90 and a reduction in dollar volume of 17% to $35,100,000.
The average price of a bare-land sale is $390,000.00
Total available listings are down 17% to 201.
The closing ratio, or the amount of sales versus available inventory, is 5% keeping the land only market firmly in the buyer’s hands.
What does this mean?
We are seeing several variables take place. Most notably the federal stress test on all mortgages is having a huge effect on buyer demand. Imagine if you were in the market for a $700,000 home…. you have 25% down so you need to mortgage $525,000. You might find a lender willing to extend you a mortgage for a 5 year term at 3.19%…. however, you would have to qualify for that mortgage using the federal stress test. This means qualifying at the mortgage amount at, presently, 5.34%. This has, generally, cut purchasers buying power by 20%. While you may be able to afford the payments your mortgager would require (approximately $2500/month) can you pass the stress test which says you need to be able to afford a monthly payment of $3,125?
Additionally, while the Sunshine Coast is not directly affected, the speculation tax and empty homes tax contemplated by the provincial government are all having a negative impact on buyer confidence.
Sellers make sure your home shows extremely well! Make sure you price it right “coming out of the gate” understanding that the buyers out there have more choice and are tending to be more careful about their purchases.
Buyers are now enjoying a balanced market. While sticker shock is still an issue you will be able to, depending on the property, take some time to make the correct decision for you and even negotiate on price! Moving toward a balanced market also takes the FOMO (Fear of Missing Out) variable out of the equation.
Either way, make sure you are working with a REALTOR® you trust and make sure you are aware of the changes to our regulatory landscape. This affects how a realtor may interact with you. Please view our video at the bottom of this page for more information on Disclosure of Representation in Trading Services.