Market Monitor
THE VOICE OF PROPERTY ON THE SUNSHINE COAST
Ray White Maroochydore
Ray White Buderim
Ray White Mooloolaba
Ray White Mountain Creek
1/ 4-8 Duporth Avenue Maroochydore 07 5443 2000 raywhitemaroochydore.com.au
4/72 Burnett Street Buderim 07 5445 6088 raywhitebuderim.com.au
1 & 2/13 Brisbane Road Mooloolaba 07 5444 3455 raywhitemooloolaba.com.au
1b/158-170 Karawatha Drive Mountain Creek 07 5477 7600 raywhitemountaincreek.com.au
Unparalleled in our local market place. Welcome
to the third edition of the Ray White Market Monitor, reporting the second quarter of 2013.
This document is your window to the industry, revealing detailed statistics we collect on everything from auctions through to property management. The quality, depth and timeliness of this data reporting is unparalleled in our local market place. Quite simply, nobody is producing insights like this. The traditionally colder months of 2013 have been staved off with increased buyer confidence on the back of the Reserve Bank’s decision to lower interest rates to a 53 year low. With brimming confidence buyer numbers grew to a point where we conducted in excess of 1000 inspections during each calendar month. As a result, both auction bidding registrations and clearance rates peaked beyond previous quarters. This high level of activity we believe has us well poised for an exciting spring period where we may for the first time in many years see signs of stronger prices obtained in some markets.
Auction Reports APRIL 2013
MAY 2013
JUNE 2013
Total Auctions
23
Total Auctions
23
Total Auctions
29
Total Sold
14
Total Sold
14
Total Sold
14
Total Withdrawn
4
Total Withdrawn
2
Total Withdrawn
1
Success (%)
73.68%
Success (%)
66.67%
Success (%)
50%
Clearance %
35%
Clearance %
43%
Clearance %
34%
Days on Market
50
Days on Market
31
Days on Market
45
Registered Bidders
41
Registered Bidders
27
Registered Bidders
48
Pre Auction Offers
11
Pre Auction Offers
4
Pre Auction Offers
6
% Discounting from Reserve -0.72%
% Discounting from Reserve -2.61%
% Discounting from Reserve -1.05%
% Lift from Highest Pre-Auction Offer to Sale
% Lift from Highest Pre-Auction Offer to Sale
% Lift from Highest Pre-Auction Offer to Sale
3.23%
0.54%
3.10%
Quarter at a Glance QUARTER COMBINED (January - March 2013)
QUARTER COMBINED (April - June 2013)
Total Auctions
66
Total Auctions
75
Total Sold
46
Total Sold
42
Total Withdrawn
12
Total Withdrawn
7
Success (%)
85.18%
Success (%)
61.76%
Clearance %
33.3%
Clearance %
37.33%
Days on Market
43
Days on Market
42
Active Bidders
63
Registered Bidders
116
Pre Auction Offers
37
Pre Auction Offers
21
% Discounting from Reserve -3.27%
% Discounting from Reserve -1.46%
% Lift from Highest Pre-Auction Offer to Sale
% Lift from Highest Pre-Auction Offer to Sale
4.02%
2.29%
What the figures show ... • The expectations of price between buyers and sellers has never been tighter, the latest period shows a variation of only 3.75% and 7.29% respectively, with both sellers (discounting) and buyers (lifting) adjusting less • Less sellers were withdrawing their properties post auction this quarter. Suggesting there is more post auction activity amongst buyers • Just under 2⁄3 properties are selling via the auction process • Less buyers made pre-auction offers, however the clearance rate was slightly higher on the previous quarter.
Auction Success Stories THIS BEAUTIFUL BUDERIM HOME
attracted a lot of interest immediately, with 60 buyer inspections throughout the campaign. The property boasted 6 bedrooms, 4 bathrooms, 2 car spaces, ocean views and a Pool. The huge home had been partially de-constructed by the previous owners so required restoration work. The early interest delivered come auction day with over 40 people in attendance and 2 buyers quickly establishing themselves as the main contenders. Bidding started at $200,000 and then rose to $450,000 when it slowed to $5,000 bids, then $1,000 and finally $500 bids. The final bid of $501,000 won it for a young couple with a child in a stroller, to the applause of those attending. This property was a perfect example of the power of auctions as both the eventual purchaser and under bidder were, prior to auction, looking to pay no more than $450,000 to secure a home. The removal of the price caused buyers to look at the property, fall in love with it and finally pay what they had to, to own it.
2 Bunyarra Court Buderim Date:
April 20, 2013
Inspections:
60
Number of Offers: 4 Sale Price:
$501,000
THIS LARGE WATERFRONT BEAUTY certainly drew a crowd on auction day. The 4 bedroom, 2 bathroom, 2 car home was immaculately presented. The owners had already committed to a purchase elsewhere so required a speedy sale. There was genuine local and regional interest in the property from the beginning with three different groups of clients attending nearly every open home held each weekend. This commitment meant that come auction day the crowd knew each other almost as well as they knew the house. With a total of three registered bidders on the day,the winning bid came in at $745,000 to secure a new family for this Twin Waters home.
12 Mariner Pl, Twin Waters Date:
June 15, 2013
Inspections: 32
Number of Offers:
2
Sale Price:
$745,000
VIEWED AND SOLD IN 15 MINUTES
A late start didn’t deter the buyers of this property. They arrived as the opening bid was called, the agent asked if they were here to buy property and they replied “yes”. He asked them to inspect the property, all the while aware the auction was currently underway. After walking through the front door and inspecting the living space the decision was made; the buyer increased the bid to $350,000 and after inspecting the rest of the property the bid increased to $390,000. The auctioneer paused the auction to allow the buyers the time to do some due diligence, with a building inspection previously supplied. Negotiations continued and the seller agreed to an increase. 69 Sam White Drive, Buderim Date:
May 25, 2013
Inspections: 16
Number of Offers:
1
Sale Price:
$402,500
Buyer Inspection Snapshots April
May
June
1,169
1,023
1,217
total inspections
total inspections
total inspections
276
302
312
no. of open homes
no. of open homes
no. of open homes
288
292
332
private inspections
private inspections
private inspections
In April to June 2013, we generated 3,409 buyer inspections and 1,438 buyers attended our 75 onsite auctions.
Advertising Snapshots Pictorial Advertising Quarter Combined
Auctions Advertised Quarter Combined
Taken from final week ending in April, May and June.
Taken from final week ending in April, May and June.
120
200
“On average, Ray White has more than 3x the property advertisements of our five closest competitors, and conduct nearly 5x as many auctions.�
Competitor 5
Competitor 4
Competitor 5
Competitor 4
Competitor 3
0 Competitor 2
0
20 Competitor 1
50
40
Competitor 3
60
Competitor 2
100
Competitor 1
80
Ray White
150
Ray White
100
Private Treaty Sales Reports
APRIL 2013
MAY 2013
JUNE 2013
No. Properties on Market
215
No. Properties on Market
262
No. Properties on Market
284
Total Sold
19
Total Sold
22
Total Sold
18
30 Day Success (%)
8.83%
30 Day Success (%)
8.39%
30 Day Success (%)
6.33%
Average Days on Market
46
Average Days on Market
46
Average Days on Market
43
% Discounting from list price
-6.18%
% Discounting from list price
-5.49%
% Discounting from list price
-6.02%
Quarter at a Glance QUARTER COMBINED (January – March 2013)
Average No. Properties on Market
247
Total No. Properties Sold
69
90 Day Success (%)
27.90%
Average Days on Market
62
Original List Price to Sold Price (%)
-8.07%
QUARTER COMBINED (April – June 2013)
Average No. Properties on Market
254
Total No. Properties Sold
59
90 Day Success (%)
23.22%
Average Days on Market
45
Original List Price to Sold Price (%)
-5.88%
What the figures show ... • Average days on market has tightened slightly, into 45 days from 62 previously. • Substantially more properties were listed in May and June 2013, however this is yet to translate into further sales • Sellers discounting remained consistent with the previous quarter.
Who is Buying? April
June
May
Investors
Occupiers
Quarter at a Glance Quarter
What the figures show ... • Investors are continuing to buy more often in 2013. Now making up consistently 1 in every 4 property sales. • The strong continued period of low vacancy rates and high yields supports investors decision to purchase • Investors are still cautious in some market segments, particularly properties that come with higher costs.
Investors
Occupiers
Property Management Snapshot April Leasing Factor
May Leasing Factor
June Leasing Factor
68
86
78
properties leased
properties leased
properties leased
18
20
21
average days on market
average days on market
average days on market
0.99%
0.57%
0.67%
Vacancy Rate
Vacancy Rate
Vacancy Rate
Keeping Business Local This year our group of offices made the conscious decision to adopt a litter of Guide Dog QLD puppies. Guide Dogs QLD work relentlessly in the pursuit of supplying vision impaired individuals with guide dogs to enhance their lifestyles. This ambition is achieved with less than seven per cent in government funding. Therefore the organisation relies heavily upon the support of the community to continue offering guide dogs, free of charge, to Queenslanders who are blind or vision impaired. As a result, we decided to donate $2500 for membership into the ‘Harness Club’ and adopted ‘B’ Litter. Since then we have followed the ongoing progress of our litter of four, Bea, Bosley, Bernie and Brock. This includes their initial days of training at the training centre through to their home stays then eventually allocating them to a legally blind recipient. We are proud to be involved with Guide Dogs QLD and their unwavering commitment to improving the lives of vision impaired locals on the Sunshine Coast, and the wider QLD community.
Š 2013 No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means without the prior written permission of the publisher.