Is the Sunshine Coast real estate market normalizing?
Sales in the month of June on the Sunshine Coast prove my inclination that the market was/is slowing. With statistics this month showing we are still ahead in all sections of the market compared to last year’s numbers we have seen a marked decrease in sales compared to last month. Let’s see how this breaks out:
Detached home sales
Detached home sales are up in dollar volume by 9% over last year to a total of $63,945,000. The average price is well up too as the total units sold this month is down 18% to 61. Compared to last month, the market has slowed considerably. We are down 25% in dollar volume and down 28% in unit sales.
Year to date shows we are still enjoying a huge increase over 2020. Up in dollar volume for 2021 by 171% to $450,900,000, unit sales are up 97% to 445 homes sold this year.
While inventory is still 40% less than last year at 197 available homes, it has increased by 15 units since last month. This is another factor taking the edge off some of the buying frenzies that we’ve experienced until recently. Nonetheless, the sales success ratio (the number of sales versus the available inventory) is at 31%, continuing a seller’s market.
Condos and townhome sales
Condos and townhome sales are up 35% in dollar volume over last year to $10,000,000. Unit sales are up 28% to 18 sales; however, compared to last month, we are down 38% in dollar volume and 40% in unit sales.
Year to date shows we are still well up from last year. Our dollar volume for this market segment is up 344% to $84,000,000, and unit sales are up 306% to 153 condos or townhomes sold this year. Inventory is still down 53% from last year to 56 units but is up 12% from last month. Nonetheless, the sales success ratio is 32% maintaining a seller’s advantage for this portion of the market.
Land only sales
Land only sales are up 23% in dollar volume from last year to $6,500,000. Unit sales are dead even with last year at 16 lots sold in June. We are down in dollar volume by 49% and unit sales by 45% compared to last month.
Year to date shows we are still ahead of last year’s pace by 457% in dollar volume to $74,350,000 and unit sales by 277% to 151. Inventory is down 43% from last year to 123 lots available but even with last month’s inventory. This puts the sales success ratio at 13%, which is considered a balanced market.
The market is changing
We can see the market is changing. From a historical point of view, it is still solid. But from the relative point of view of (comparing to last month), we have seen the market has settled by about 30% on average.
Home Sellers – start thinking about price and keeping your expectations in check. Certain highly desirable properties are going under multiple offers; however, the vast majority of properties coming to market are not receiving multiple offers and are having to negotiate price! Imagine that!:) As always, the more turn-key / ready-made your property is will result in a quicker sale for more money.
Home Buyers – the immediate market over the summer is your best time to get a deal; as I predict (with Covid in the rearview mirror), the market will start to get very busy again. If you see the right property for you, don’t wait to make an offer….go for it today!