Despite the hectic month for sales on the Sunshine Coast, the COVID-19 pandemic is showing a pronounced effect on sales across the board.
Let’s see how it breaks out:
Detached sales for May are down 42% in dollar volume to $19,000,000, and unit sales dropped 40% to 28 homes sold. You can tell folks are “cocooning” as available inventory is down 29% to 312 units. The sales success ratio is 9% (meaning 9 out of every 100 available properties are selling), putting us in a buyer’s market but very much on the cusp of a balanced market.
Looking at the year to date numbers, we are down only 11% in dollar volume to $107,600,00, and the same in unit sales to 150 units sold this year. The average home price remains unchanged at $717,000.
Condos & Town Home sales for May are down 86% in dollar volume to $950,000….unit sales closely match with being down 80% to 3 units sold. Inventory is up 12% to 107 available units. The sales success ration is 2.5; clearly, the buyers are controlling this segment of the market.
Looking at the year to date numbers, we are down 51% in dollar volume to $17,850,000 and down 44% in unit sales to 37 units sold this year. The average sale price for a condo or townhome is down 12% to $482,000. Look for the year to date numbers to fall further as we are not having the robust pre-sales of some exciting local developments that we had last year.
Land only sales for May, as expected, are down 74% to $1,750,000 in dollar volume. Unit sales tumbled 46% to 7 units sold in May while inventory grew slightly to 227 units. The sales success ratio is 3%.
The year to date numbers, we are down 51% to $8,050,000 in dollar volume and down 36% in unit sales to 24 units sold this year. The average price for a piece of bare land this year is down 23% to $336,000.
The drop in sales was not unexpected as we enter the third month of the pandemic protocols. The detached portion of the market remains strong, and I see no less than a dozen pending sales in our office!
Home Sellers: be nimble with decision making and be prepared to negotiate when that offer does come.
Home Buyers: be prepared to make the deal they want now. Beware of waiting for the “bottom to drop out” of the market. I have seen buyers take this attitude at different times over my 17 years in the business, and everyone tends to wait too long, i.e. the market may dip slightly yet, but by this time next year, you’ll wish you bought instead of waiting. Interest rates are even crazier than in previous years–imagine locking in a ten year fixed around 3.5% or a variable at 2.5%.
People ask me what kind of ongoing effect the pandemic will have on the coastal market
That’s hard to tell. If we see a minimal second wave for the virus, I think we will recover quickly and see minimal slow down in the real estate market. If we experience a pronounced second wave over the summer, with the ongoing relaxation of protocols, then the entire economy will have to readjust, and that will include the real estate market.
For more information, contact your realtor. For market intelligence, contact Russ or Terri at Coast Lifestyles Network.