In recent times analysts have come to re-define the property cycle into 4 phases: boom, bust, recovery, stabilization.A recovery market is characterized by 5 key features according to leading analyst Michael Matusik - rising sales - a return to price growth, albeit usually quite mild - improving rental yields - more building activity - a more equal market between buyers & sellers.
We showed last month that house sale volumes had increased in the Mt.Coolum area, although prices were down. The table confirms that volumes for houses, apartments and land were all up for the whole Sunshine Coast 2012 over 2011.
Some of the recovery features are in place, sales up & low levels of stock moving to a balanced market, so we are clearly off the bottom, although not far from it.
Matusik believes that the Sunshine Coast is one of several Queensland regions that are now “knocking on the door to recovery”. These are very general assessments. that do not address segment differences.
We showed last month that house sale volumes had increased in the Mt.Coolum area, although prices were down. The table confirms that volumes for houses, apartments and land were all up for the whole Sunshine Coast 2012 over 2011.
Some of the recovery features are in place, sales up & low levels of stock moving to a balanced market, so we are clearly off the bottom, although not far from it.
Matusik believes that the Sunshine Coast is one of several Queensland regions that are now “knocking on the door to recovery”. These are very general assessments. that do not address segment differences.
Volume Increases - Sunshine Coast
These are reflected in the amount of stock on the market.
Housing stock is very tight.
The apartment market has high numbers for sale as long term investors look to realise capital gains or losses from purchases made in earlier years as they recognise extensive periods ahead of slow growth in the property cycle.
The luxury apartment market is the last sector to recover & requires massive price adjustments to move stock as evidenced on the Gold Coast & locally, eg the Coolum Seaside 5 Star liquidation
Analysis by Geoff Grover, Mr Mount Coolum Real Estate
Coolum Beach Realty
Mobile 0414 337 402
April 2013
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