They may quote slightly different numbers, but real estate market watchers seem to agree that the Sunshine Coast is starting to feel some of the heat from the Lower Mainland’s exploding housing prices.
Some analysts have also suggested the Sunshine Coast market, as well as markets in places like Qualicum Beach, Nanaimo and Victoria, is being driven by more than just high demand. They’ve seen a demographic shift, as aging baby boomers “cash out” of their high-priced Lower Mainland properties.
Gary Little, a real estate agent who’s been closely tracking Sunshine Coast market statistics since 2009, says that matches what he’s seeing.
“In general, most of my clients tend to be in their 50s or more,” Little said. “That’s actually been quite common for some time. But I can tell you the last few deals I’ve done, the clients came from Vancouver, Port Moody, Delta and North Vancouver.”
Little also believes it’s driving up prices to their highest levels in years, with more properties going for prices above asking than before.
“They [Vancouver-based buyers] came over here and sort of caught us by surprise. They initially took up the best properties and the inventory goes down. And, there’s more people coming and they’ve got money, so it drives the prices up … I see it day-to-day,” Little said.
“What we’re seeing now is the asking price is starting to inch up, we’re seeing activity, we’re seeing quick sales.”
Realtor Kenan MacKenzie told Coast Reporter his experience has been a little different. He said he’s definitely seen a spike in activity, high prices and even bidding wars. But he’s not convinced older baby boomers selling expensive Vancouver real estate and using the profits to buy here is the biggest reason behind it.
MacKenzie said he’s seen younger buyers bypassing the overheated Lower Mainland market altogether and looking to the Sunshine Coast for more affordable options, and the hottest market segment is properties under $500,000. MacKenzie also said other factors are coming together to drive the Coast market higher.
“I think we’ve set ourselves up for the perfect storm,” he noted. “We have Chinese investors on the Sunshine Coast who have bought into business and are buying homes to live here, you’ve got young people trying to move [here], you’ve got the boomers trying to move [here], you’ve got Americans potentially coming back into the marketplace.”
Both men agree that the market conditions are unprecedented and it’s largely a case of simple supply and demand. MacKenzie and Little estimate the stock of detached homes on the market right now is about 300, which is fewer than needed to fill the needs of potential buyers.
The Real Estate Board of Greater Vancouver’s latest numbers show the benchmark price of single-family detached home on the Sunshine Coast hit $399,600 in February, up 13.8 per cent over last year. Little uses a slightly different method to crunch the data, and his analysis shows a median price (meaning half of the sales were higher and half lower) of $451,000 in February, with a “12-month rolling average” of $427,026. No matter which number you use, it’s a significant increase.
“In 21 years as a realtor I’ve never seen a market as active as we have now, because basically there’s more buyers than we have product for,” MacKenzie said.
According to Little, one key difference between the Lower Mainland and Sunshine Coast markets is the motivation of the buyers. He said the fears over speculation being seen in the Vancouver area aren’t being reflected here.
“They’re actually moving, I don’t think we’re seeing any speculation over here. I don’t think anybody’s buying over here and saying, ‘I’m going to sell again in three months for more money,’” Little said. “Most people are coming over here to live.”
While an influx of buyers of any sort is good news for people with property to sell, the possibility that the trend-behind-the-trend is accelerating the growth of the 60-plus demographic on the Sunshine Coast creates challenges.
Projections from BC Stats say the proportion of people over 60 on the Sunshine Coast will hit 39 per cent by the end of this year, compared to 33 per cent in 2011. By contrast, the percentage of people 30 to 59 is expected to drop from 41 per cent in 2011 to 36 per cent by the end of this year.
Anne Titcomb of the Sunshine Coast Seniors Planning Table told Coast Reporter the demographic shift is something recent Vital Signs reports have predicted, and getting ready for it was one of the reasons the Planning Table was formed.
Titcomb said while the obvious impact is a need for more services for seniors and planning approaches that take an aging population into account, the change could also affect the younger demographic the area is trying to attract.
“With the rise in the cost of housing that seems to be happening here now, I worry about the tipping of the scale – it’s never good to have a big imbalance in population – but I’m more worried about the ‘worker bees’ being able to afford housing now,” Titcomb said.
“We want to have people available to support seniors.”
That’s a worry for MacKenzie, too. As increased demand leads to more construction, he said, builders could see a shortage of workers in the trades, and those who move here to fill the gap could have a hard time affording homes.
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Original Publish: http://www.coastreporter.net/
The southeast Queensland suburbs where vendors are discounting their sale prices
The southeast Queensland suburbs where vendors are discounting their sale price by the largest percentages have been revealed.
New data analysis by Domain looked at the average rate of vendor discounting on properties in suburbs throughout Brisbane, the Gold Coast and the Sunshine Coast over the six months to March this year and found some areas were discounting by as much as 12 per cent.
Houses at Carindale, Clontarf, Redcliffe and Rochedale South topped out the list of Greater Brisbane suburbs with the highest percentage of vendors discounting their asking price, while Chermside, New Farm, Redcliffe and South Brisbane had the highest rate of discounting for units.
On the Gold Coast, houses at Broadbeach Waters and Hope Island both recorded double-digit average vendor discounting, while units at Main Beach and Southport had the highest rate of discounting.
Maroochydore and Tewantin headed up the Sunshine Coast houses that were being the discounted by the highest percentage.
Domain economist Trent Wiltshire said the rate of discounting was another market indicator that could help assess conditions in certain suburbs.
The data was compiled using a minimum of 30 observations and did not include properties that sold via auction or without a listed price.
“This can be a bit more timely than price data,” he said. “But it is only an average figure and, while the average or median is the simplest way to look at a suburb, it doesn’t tell the full story.”
Will Torres of Torres Property said overall the housing market in Carindale was performing well but that the average discounting rate was likely brought down by a specific price point.
Carindale’s median house price is $879,750, a rise of 1.1 per cent over the year to March.
“I’d say the market that is being affected at the moment is that mid-$1 million price range,” he said.
“Rewind to six months ago I was selling houses in this price range in three weeks — now I’m struggling to get numbers in the door. That’s where the discounting will be, around that $1.5 million range and that’s why the Carindale percentage is that high.
“Anything under that price point is still performing really well and selling well. Days on market have stretched but the buyers and the demand is overall still there.”
Broadbeach Waters recorded the highest rate of vendor discounting, by up to 12 per cent. Jordan Williams of JW Prestige said that figure had likely been increased by houses in the $2 million to $3 million range, which were sometimes overpriced.
“If you’re 10 per cent over the odds you won’t get a result, you won’t get a deal — that’s why you’re seeing that average discount for Broadbeach Waters,” he said.
“So this figure doesn’t mean the market has dropped here, it means some properties were overpriced. I sold a house for $4.5 million where the owners originally were asking $4.7 million. That’s a massive discount.
“But it started out that high because the owners said they wanted to give it a go, test the waters. There’s a million different scenarios for why people discount their properties.”
At Hope Island, where the average vendor discount is 10.3 per cent, agent Warren Hickey is selling a four-bedroom, two-bathroom contemporary home on Virginia Avenue, which is listed for offers over $995,000 and advertised as a huge price reduction.
However, he said the listing was not representative of the local market.
“On average we’d sell a property a week in Hope Island. I would say if you look back at everything we’ve sold in the past few years, we’ve probably only advertised one as having a price reduction and this is it. It’s the exception,” he said.
On the Sunshine Coast, where Maroochydore recorded an average discount on houses of 7.5 per cent, local Century 21 agent Damien Said said a lot of the properties in higher demand were now auctioned.
“That needs to be noted — those properties are automatically excluded from the data,” he said.
“If anyone in Maroochydore is discounting, I’d say it’s more of a reflection of a few properties that came on the market with unrealistic expectations.
“Generally, we’re finding that when properties do come on the market, as long as the price is realistic, our days on market are reducing. The coast market is still quite active.”
The booming property hotspots which have defied the housing downturn – and it’s good news for homeowners living in Queensland
Coastal and regional hotspots are bucking the housing market downturn with property prices at record highs.
As the market in Sydney and Melbourne continues to weaken, it’s a different story in regions such as Hobart, Canberra and Queensland’s Gold and Sunshine coasts.
The regions dominate in the 11 suburbs across Australia identified as the most resilient areas, according to CoreLogic data.
New figures released this month revealed national housing values have plummeted 7.2 per cent, the largest annual fall since the 12 months ending February 2009 during the global financial crisis.
But Core Logic head of research Tim Lawless says homeowners in weak markets are unlocking significant equity, helping to boost prices in coastal areas.
‘Baby boomers are retiring, having gone through a number of property cycles and have the equity to fund a lifestyle purchase,’ he told The Australian.
‘The money goes further in these markets than in Sydney and Melbourne.’
So, where are Australia’s most resilient areas?
The Sunshine Coast, Queensland
The latest figures are good news for those looking to sell on Queensland’s Sunshine Coast.
The median housing price in Sunshine Beach have soared 5.3 per cent in the last 12 months to almost $1.16million and up 26.6 per cent in the last five years.
The suburb was followed closely by Noosa Heads ($1.11 million) with a 2.9 per cent rise, where prices have jumped 29.5 per cent in five years.
In nearby Diddillibah-Rosemount, prices have jumped 16 per cent in the last five years to $747,812, 1.8 per cent rise in the last 12 months.
Renowned as a popular tourist mecca and for its laidback lifestyle, the Sunshine Coast is a growing region which attracts more than 3.2 million visitors a year and is Queensland’s third most populated area.
Further south of the Sunshine Coast, the median price in the Brisbane suburb of Windsor rose by 6.04 per cent to $902,000 while on the Gold Coast, the coastal suburb of Palm Beach now stands at $872,400, up 2.8 per cent and 42.8 per cent over five years.
Many parts of the nation’s capital are also bucking the downturn trend, according to CoreLogic.
Experts have hailed Canberra the strongest real estate economy out of all of the capital cities.
The median price in Garran has skyrocketed by 10.7 per cent to just over $1million in the last 12 months and 41.9 per cent over five years.
There were even higher rises in Lyons (14.1 per cent to $769,518) and Cook (17.4 per cent to $749,743).
A town not far from Canberra that also made the list was Yass in the NSW southern tablelands, where the median property price jumped by 4.8 per cent to $760,000, where prices have soared by a third within five years.
Hobart, Tasmania and West Beach, South Australia
2018 was a record year for real estate sales in the Apple Aisle, known for its relaxed lifestyle, affordability and cooler climate.
There were 11,400 property transactions worth a record $4 billion last year, according to Real Estate Institute of Tasmania data.
In Hobart, the average property price has risen 6.5 per cent to $809,300, a 39.3 per cent within five years.
Also in Australia’s southern states bucking the trend is Adelaide seaside suburb of West Beach, where the average price is now over $800,000 after a 4.4 per cent rise and 27.3 per cent change over five years.
At the other end of the scale, 17 of the 20 biggest price drops for the year were in Sydney’s mid-priced suburbs such as Epping, where prices have plummeted by almost a third in the last 12 months, The Australian reported.
Mr Lawless said there are signs that the worst of the housing market conditions are now over.
‘Values are still broadly declining, however the pace of decline has moderated since December last year and there are some tentative signs that credit flows have improved, albeit from a low base,’ he said earlier this month.
‘The prospect for lower interest rates is another factor that could support an improvement in housing market activity later this year.’
Hot property: Dated dress circle Noosa home sells at auction
A WATERFRONT home in need of an upgrade in one of Noosa’s most prestigious streets has sold under-the-hammer for $5.67m.
A WATERFRONT home in need of an upgrade in one of Noosa’s most prestigious streets has sold under-the-hammer for $5.67 million, with agents claiming the coastal hot spot is proving immune to the pre-election uncertainty plaguing the property market.
The four-bedroom house at 49 Witta Circle was sold at auction after a bidding war between four parties.
The result shows the Noosa prestige market is “rock solid”, according to marketing agent Eric Seetoo of Tom Offermann Real Estate.
“The … home was an oldie, but it occupies one of the most desirable locations on the waterfront near Hastings Street,” Mr Seetoo said.
“We found four bidders, three of whom were present, and another was on the phone from overseas, each with well over $5 million to spend.
“As you can imagine, I am busy finding properties for the underbidders.”
Agency principal Tom Offermann said he believed it was the highest Queensland house sale under-the-hammer so far in 2019.
“Witta Circle is one of those ‘can’t go wrong locations’,” Mr Offermann said.
“It’s on the water, picturesque, and an easy walk from Hastings Street and the beach.
“The capital growth has been over 15 per cent on average for the past 40 years — hard to beat.”
Mr Offermann said he was still finding demand strong, especially at the luxury end, where there was a critical shortage of stock.
Tom Offermann Real Estate recently sold a waterfront house at 55 Wyuna Drive, Noosaville, for $4.75 million and 27 Mossman Ct, Noosa Heads, for $5.75 million.
And an apartment in the La Mer complex on Hastings Street changed hands last month for a whopping $6.1 million.
“Property markets usually slow down during an election, but not this time in Noosa,” he said.
“The traditional slowdown isn’t apparent this time, with most clients adopting a wait and see attitude.
“Some are even predicting a post election rush into investment property before any negative gearing or capital gains tax changes are introduced.”
Adrian Reed of Reed & Co has just listed a five-bedroom, five-bathroom mansion at 54 Noosa Parade with a price guide in the late $7 million to early $8 million range.
Given the property’s location, river views and proximity to Hastings Street, Mr Reed is expecting it to be one of the most significant sales of the year.
Originally published as Dated Noosa home fetches big $
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