Tuesday, July 30, 2013
Disconnect between Buyers and Sellers
Sunshine Coast Property Talk – Geoff Grover - August 2013
www.geoffgrover.com.au
geoff@coolumbeachrealty.com.au
Right at this time it appears that buyers & sellers are not on the same page, they both have very different expectations.
We are seeing a lot of listings coming on for, shall we say, very hopeful prices, and buyers on the other hand are still thinking it is “disaster city’ with their offers.
The reality is the market in general is, or should be, balanced, as we have historically very low levels of stock available, particularly those at the most affordable prices.
What are these price zones?
Coolum Beach House Sales - July YTD
Price Range Number Sales %
0-$400k 25 39.0
$400 - $450k 17 26.6 = 65.6
$450 - $500k 7 10.9 = 76.2
$500-$600k 9 14.1
$600-$700k 3 4.7
$700k+ 3 4.7
Total 64 100
The disconnect is occurring as a large proportion of vendors are trying to push up prices & list in a higher bracket where they do not belong.
Why - due to a misguided idea as to their value, and also agents talking up prices unrealistically to win listings as so few are coming on & they run out of stock.
The proof of this comes with domain. com.au showing sell prices for P/Code 4573 on average 10% discounted off original list price for houses for the 12 months to April 2013 & 12.6% for units.
Realestate.com.au has Coolum Beach with 91 listings, only 25% under $450k, yet the actual proportion of sales is 65.6% as list prices get pushed way down to sell.
Both sellers & buyers need to be very aware of recent, for like property sales when assessing what are realistic prices to list at or to make an offer.
Your local real estate expert will know this & provide the sales proof plus history of his/her record in the area
Sunday, July 7, 2013
The Coolum Property Cycle
The
turn of the century saw a dramatic change in Coolum house prices - up until
then, rises in the low range of inflation were the norm, suddenly they
dramatically rose to create the notion that house buying was a sure
fire major wealth creator rather than a roof over ones head..
Sadly for many, a major correction commenced in 2009, so a purchase in 2008/9 will really struggle to return close to the buy price today.
To get some idea of these cycles on an over all basis, a median price average analysis is useful, although a price on a particular property requires a detailed like for like analysis.
Sadly for many, a major correction commenced in 2009, so a purchase in 2008/9 will really struggle to return close to the buy price today.
To get some idea of these cycles on an over all basis, a median price average analysis is useful, although a price on a particular property requires a detailed like for like analysis.
Coolum Median Property Prices
The turn of the century saw a dramatic change in Coolum house prices - up until then, rises in the low range of inflation were the norm, suddenly they dramatically rose to create the notion that house buying was a sure fire major wealth creator rather than a roof over ones head..
Sadly for many, a major correction commenced in 2009, so a purchase in 2008/9 will really struggle to return close to the buy price today.
To get some idea of these cycles on an over all basis, a median price average analysis is useful, although a price on a particular property requires a detailed like for like analysis.
The turn of the century saw a dramatic change in Coolum house prices - up until then, rises in the low range of inflation were the norm, suddenly they dramatically rose to create the notion that house buying was a sure fire major wealth creator rather than a roof over ones head..
Sadly for many, a major correction commenced in 2009, so a purchase in 2008/9 will really struggle to return close to the buy price today.
To get some idea of these cycles on an over all basis, a median price average analysis is useful, although a price on a particular property requires a detailed like for like analysis.
Coolum
Beach House price
The
turn of the century saw a dramatic change in Coolum house prices - up until
then, rises in the low range of inflation were the norm, suddenly they
dramatically rose to create the notion that house buying was a sure
fire major wealth creator rather than a roof over ones head..
Sadly for many, a major correction commenced in 2009, so a purchase in 2008/9 will really struggle to return close to the buy price today.
To get some idea of these cycles on an over all basis, a median price average analysis is useful, although a price on a particular property requires a detailed like for like analysis.
Sadly for many, a major correction commenced in 2009, so a purchase in 2008/9 will really struggle to return close to the buy price today.
To get some idea of these cycles on an over all basis, a median price average analysis is useful, although a price on a particular property requires a detailed like for like analysis.
Coolum
Beach House price
 |
Property investment is best
served by the old adage of ‘it is time in the market that counts, not timing
the market”.
You can`t always profit on a
property sale, it depends on the property cycle.
Those caught out buying at the
peak need to recognise that the reality
is when you buy and sell in the one
market, it is the relativity that counts, not quantum prices - you lose on your
sale, pick it up on the purchase.
Interestingly, the long term
trend from 1993 to today is the equivalent of
6.5% compound growth every year.
These numbers are only useful
as generalisations for long term
trend analysis, and only where the type
of properties sold remains constant.
For instance, Mount Coolum figures would
be heavily distorted with the recent
upmarket Boardwalk development.
Geoff Grover
Mount Coolum Real Estate
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