The Sunshine Coast’s cyclical real estate market is back. Over 2015 – 2018 the local “sales cycle” on the Sunshine Coast was thrown for a bit of a loop. With such huge demand, low inventory and rising prices, every month during those years was like being at the top month of our familiar late spring/early summer high demand months for real estate.
2019 leaps back into a historical, seasonal cycle. Let’s see how the month of May breaks out:
Residential detached dollar volume was down 32% from last year’s numbers to $32,600,000. Unit sales were down by 30% to 47 homes sold. Year to date we see a 22% drop in dollar volume to $121,000,000 and a 24% drop in unit sales to 169 so far this year. Our success ratio – measured by comparing total sales this past month to total available inventory ( 47/440= .1068) or 10 – 11%. It is generally accepted that a success ratio of less than 10% is a buyers market, 10 – 15% is a balanced market and more than 15% is a seller’s market. Therefore, we are in a balanced market but on the cusp of a buyer’s market. The average price of a home, year to date, is still up 2% over last year and sits at $716,000.
Townhome and condo
Townhome and condo dollar volume was down 27% from last year’s numbers to $7,100,000. Unit sales were down by 31% to 22 units sold. Year to date we see an increase of 2.5% in dollar volume to $36,700,000 and a 16% drop in unit sales to 66. The dollar amounts can be accounted for by some of the reported presales on the Eagleview Heights development. As an aside, watch these numbers become more “skewed” as the Touchstone development comes online at some point this year. Our sales success ratio in this segment of the market is 16% (15 units sold out of 94 available) and puts us in a seller’s market situation. The average price of a townhome/condo unit (skewed by the high sale amount presales) is up 17% to $550,000.
Bare land is doing its usual thing with a 42% drop in dollar volume to $6,900,000. Unit sales follow closely with a 45% drop to 13 units sold. Year to date we see a decrease in dollar volume of 47% to $16,725,000 and a drop of 51% in units sales to 38 bare land properties sold. The sales success ratio for bare land is 6% making it a buyers market. The average price for this kind of property has increased by 8% to $440,000.
What does this mean?
Detached homes sellers are in competition
Detached homes sellers should be spending some time and money to prepare their home for the market. Deferred maintenance, a new paint job, even cleaning the windows and mowing the lawn are all items you should be paying attention to so the home shows it’s best. Secondly, be sharp with your price. There is a lot of inventory to choose from in the $700k – $900k range so your home has to stand out. The best way to make your home stand out is to price it well. That is a relevant factor so contact your realtor for details.
Townhome and condo market is strong for sellers
Townhomes and condo sellers should also make sure the home shows well and any deferred maintenance, especially cosmetic, is taken care of prior to listing. This segment of the market is strong now so, if you are considering selling, don’t hesitate to contact your realtor about getting it to market sooner than later. With the presale offerings that are present and others that will soon be available to the market, this segment will soften over the next 12 months. At least, that’s my expectation.
Bareland sales is a crapshoot
Bareland sales continue to be a bit of a crapshoot. If you have raw land to sell, make sure it is accessible for a walkabout (trails, paths, building sites and clearly marked boundaries). If you are selling more of a city lot or subdivision-style lot, then make sure you understand where your competition is positioned and what historical sales can show you regarding asking price.