Real estate sales on the Sunshine Coast for the month of August showed some bright spots as we continue to watch how things settle and how the market will be affected further. Let’s break it down with market intelligence:
Detached Home Sales
Detached home salesfor August were the bright spot with $47,500,000 in sales volume. This is up 16% from the same time last year. Unit sales last month were down 14% to 54 detached homes sold. Ten of these sales were over $1,000,000 and one was at $5,000,000 hence the nonsensical results of less unit sales resulting in higher dollar volume.
Year to Date matches what has been happening with total sales dollar volume down 17% to $288,000,000. Unit sales are down also by 23% to 384 units sold in 2018 so far.
Total available listings are up 24% to 386. Our closing ratio (or sales versus available inventory) is 14% which keeps us in a balance market.
Attached home sales
Attached home salesof condos and town homes took a big hit for dollar volume over August. The Coast saw $3,850,000 in sales which is down 74% from last year. Unit sales tell us the same story with 8 units sold. This is down 72% from last year.
The year to date numbers are a little brighter with total dollar volume reaching $48,100,000 down 32% from last year. Units sold this year are 108 down 37% from last year.
Total available listings are up 24% to 63. Our closing ratio on attached sales is 13% keeping it just inside a balanced market.
Land Only Sales
Land Only Salesfor last month were at a total dollar volume of $2,400,000. This is down 73% from last year. Unit sales are down 68% to a total of 6. Year to date we have seen $41,000,000 in sales volume which is down 28% from last year.
Unit sales for the year are down 23% to 108. Total available listings are actually down 12% to 207. The closing ratio for Land Only is 3%…this sounds dismal but is on par, historically, for the Coast.
The summer was excruciatingly slow for real estate. As you know there were many variables from the weather (distractingly beautiful or smoky!), to the federal mortgage stress test, to the new taxes the provincial government will likely be introducing with the fall budget.
Buyers should be optimistic and upbeat!
You can now negotiate a deal rather than figure out how much you want to pay over asking price! There will be more choice in many segments of the market as well. Your best strategy for moving forward is getting pre-approved with your lender so you are ready to make the offer when the time comes. You also want to lock in to the approval for as long as possible (some lenders offer 120 days) as interest rates may rise again.
Sellers should strategize carefully before listing their homes.
You should clearly understand why you are selling (many folks, amazingly, cannot give a detailed reason for selling other than their equity position is huge) and what variables are important to you ie. timing, terms or price. Sit down with your realtor and figure out the path that will be the most rewarding.