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