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Market News for the Sunshine Coast

Detached listings

There are 464 current detached listings and 28 sales year to date. The hot price range of the market is between $300,000 and $400,000. with 50 % of the sales occurring in this price range. With the current pace of sales this represents a 17 month supply of listings. Comparing the previous year’s detached sales, in 2011 for the same time period we had 50 sales

Attached Listing
There are 146 current attached listings and 2 sales year to date. With the current pace of sales this represents a 73 month supply of listings. Attached listing represents strata units apartments, condos and townhouses.

Land listing
There are 367 bare land listing and 3 sales year to date. With the current pace of sales this represents a 122 month supply. Comparing the previous year’s detached sales, in 2011 for the same time period we had 50 sales

This is typically a slower time of the year so I would not be overly alarmed by these stats. I have been checking around at some of the other Real Estate offices this week and most are showing an increase in buyer activity and in some cases there have been competing offers. Most of my fellow Realtors that I checked with are working with a number of Buyers and report an increase in showing activity. So I believe my next report on the market will show a significant difference

Reviewing the year to date sales I found most of the sale prices occurred within 5 % of their current listing price. The listings that were on the market the least amount of time sold within a few thousand dollars of their list price. The home with the largest difference between the original asking price was on the market for 17 months. So price it right.

- Kenan

Price it right! – The most important component of a successful sale.

Put aside your emotions and price your home right from beginning!  The advantages of an accurate listing price are a faster sale, less inconvenience, increased activity, often a higher selling price, reduced negotiations, and avoidance of a “stale listing” which can lead to your home standing out and being compared negatively to the competition.

Appraisers use to two main methods to appraise your home: one is by direct comparison and the other is by cost approach. The cost approach takes in the land and included site developments plus the home, garage, basement and extras. These are assigned values related to land sales and current building costs and the buildings will be depreciated according to wear and tear.

Realtors will sometimes do a worksheet on your home using the cost approach prior to using the direct comparison. Direct comparison is the most accurate indication of market value for your home. Your home is compared to similar homes that have sold and adjustments are made for differences.  Your realtor normally would come up with at least 3 homes that have sold recently and are similar to your home. If you live in a “cute, heritage style home” then the comparisons should be similar to that. If you live in 2800 sq ft home on a non view lot it will be difficult to compare to a 2800 sq ft view home given the difference a view makes to many buyers.

Also better to look at what your neighbor sold for than to look at what neighbor listed for. In a buyers’ market it pays to look at sales first and then the currently listed homes.   Through the internet many buyers are very well informed and they know the market. Buyers want to make sure they are getting best value for their money.

I quite often have sellers indicate they want to have a little room to negotiate.  Or they say that hopefully someone is going to come along and pay them 10 % more than suggested because their home is special. What the statistics show is that the best offer for your home will usually come in the first 30 days. After that time the price you expect to receive for your home, will decline. I have seen sales where an “average” property was listed for 4 years before it sold. Imagine the stress of being on the market for that length of time. Price it right.

- Kenan Mackenzie

Tips for selling your home in 2012

Did you know that the return on staging your home is estimated to be somewhere between 6 and 10% increase on your sales price. The marketing time to sale is shortened. Staging does not mean you need to spend a fortune. Create the Vision inside and out.

If you can see a broken fence panel or the gutters are full you can be sure the Buyer will too. This sends a message of neglect. Stand back and look at your home. What do you see? Keep your yard neat and tidy, remove clutter, a little paint on the deck or trim says you care.

Inside your home organize and de-clutter. You want to create the illusion of spaciousness in all your rooms. Pay attention to closets, cupboards and the garage as well. Have a garage sale; call the Salvation Army or Habitat for Humanity to pick up your extra things. Remember cleaning up your home is money in your pocket and less things to move. Don’t forget to pay special attention to housekeeping including windows while your home is on the market.

Neglected home maintenance is going to show up in the Buyer’s Home Inspection. Do a pre-inspection prior to listing and deal with the repairs. The caulking around the bathtub, burned out bulbs, broken tiles etc. are a turn off, so fix them.

The Appraisal Institute of Canada’s 2011 survey indicates the top return on renovation projects are:

1. Kitchen
2. Bathroom
3. General Painting

with an average return of 50 to 100%. So a little paint is dollars in your pocket. And remember you might like funky colours but neutral colours always win. Also remember that a strong odor is offensive to buyers. Don’t smoke in the house, keep the pets area clean. For a pleasant camouflage try brewing coffee or have some cinnamon sticks simmering on the stove.

Make sure your home is warm light the fireplace you want the Buyer to feel comfortable. All lights On, light gives the illusions of bright and spacious even in the daytime. Realtors will normally turn the lights off at the end of the showing.

Lastly the most important component of a successful sale – Price it right! But more on that topic next week. Till then,

- Kenan Mackenzie

Market and Population Trends

photo by KamsWorld

The question was asked “Who will make up these three hundred people and does this mean that every year we will add three hundred people to the Coast?”

The answer is no, over the long term the stats show that on average 300 people will move to the Coast. If we look back over the market cycles and the population trends we will see a mirror effect of prices verses population. The old adage of supply and demand comes into effect.  Toward the end of the Sellers market we can see the population growth peaked out at a little over 4.1 %. In 2005 the population growth peaked at 2.8% and then settled to around a 2% increase for 2006 / 2007. Since the population increase has declined Real Estate Sales & prices have gone with it. In 2010 BC Stats shows that our population settled at around a 1% increase.

Most of the growth in our area’s population will be in the over 65 plus age group. Of the 5,950 people forecasted to move to the Sunshine Coast by 2031, 5,614 people will be over 65 plus age group and 336 people will be less than 65. As Ryan Berlin Director for Urban Futures states “The best predictor of future demographic change is what the population looks like today and the Sunshine Coast which has an older population that is less has inclined to move than younger people”

In my opinion, the only way to attract younger people to the Sunshine Coast is to improve the ferry system. That will take our political leaders working together to challenge BC Ferry’s to implement a passenger ferry service between Langdale and Horseshoe Bay to match up with the Bus service.  The lower mainland is the employment and education epicentre for the province and it’s right on our door step. We have seen many a commuter return to the city, the commuter who does hang on is the one waiting for retirement. A passenger only ferry would supplement the present service and get people home on time.

- Kenan Mackenzie

To Buy or To Sell in 2012?

photo by photodreamz

If you are thinking of selling in 2012 you need to answer these questions first “what will I do when I Sell?” and “Will you be buying back into the market?”

If you are buying back into the market this is a great time to sell. In our current Buyer’s market you may find that there is more than one choice for you. So if you Sell low, you Buy low. If you have other needs for the money ask yourself the question “will I make up the difference if I sold today versus waiting for the market to go up?” If the property is strictly an investment and if you have no other use for the money maybe you want to  wait a few years.

If you are thinking of buying, do not be caught waiting for the bottom only to be left behind. It seems as people we wait for everyone else to start buying to confirm our decision that the time is right. History tells us that as long as the Sunshine Coast is desirable it will be a great investment. We have record low interest rates with banks and mortgage companies competing for your business and willing to deal on rates & terms with you. If you are a first time buyer call your bank or mortgage broker and get a pre-approval for your mortgage with your rate locked in. They will also tell you the amount you can afford, so do this prior to looking at homes and you will save yourself any disappointment. Also, remember the Home Buyer’s Plan that allows you to use your RRSP funds up to $25,000. for a first time home buyer and for a home that you intend to occupy. For the investor you never need to worry about being left with paper.

- Kenan MacKenzie

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