Understanding how your property’s worth is determined is critical. A lot of people get confused about the difference between a market appraisal and a property valuation. And it’s easy to understand why. Both processes are designed to determine what your property is worth, but there are some significant differences between the two, which you should be aware of. Here’s why you should get a market appraisal, how a market appraisal differs from a property valuation, and what you can expect from southern Gold Coast property market now.
What is a Market Appraisal?
A market appraisal is an informal estimate of what your home may be worth, which is commonly given as a free service by real estate agents. It’s an educated opinion based on:
- Your property’s location, features and size
- Recent, comparable sales data in your area
- Current market sentiment, including buyer demand
- Overall market trends
Your agent should provide you with a physical report, which would include statistics about your property’s suburb, a local market update, summary of recent comparable sales as well as current comparable listings. The report provides you with a complete snapshot in time, keeping you informed about how you’re tracking with one of your greatest assets.
How is a Property Valuation Different?
A property valuation is a legally binding report, usually performed by a Certified Practicing Valuer for an agreed fee. A valuer will inspect the property, carry out research and analysis into the local market and provide a detailed report regarding issues affecting the current market value of the property.
A property valuation service is commonly required by a bank or financial institution prior to approving a home loan. It is also used by buyers and sellers wanting an independent opinion prior to pre purchase or pre sale, family or partnership settlement, capital gains tax and in some instances building insurance.
What’s the Market Looking Like Across the Southern Gold Coast Now?
So what’s happening now across the Southern Gold Coast? At LJ Hooker Palm Beach we’ve noticed there are two big drivers currently occurring in the market. The first is that there is increasing buyer demand and confidence. This has been created by lower interest rates, tax cuts and a subtle easing in credit policy, together with a stable federal government post-election. The second observation is the lack of stock with just 1,506 properties listed for sale over the past 12 months, lower than the same time last year. This has obviously resulted fewer sales, with 980 taking place over the past 12 months.
The best performing suburb, over the past 12 months has been Currumbin which has seen its median sales price grow by 8.2%. The median sales price of a home in Currumbin is now $885,000. Palm Beach saw its median house sales price grow by 6.5% across 182 house sales, with the median price now sitting at $841,650. Elanora grew 1.1% across 166 sales with the median price now at $687,500.
Over the past month, about $10.19m in units and $16.3m in houses has been sold in Palm Beach with $125.1m and $194.46m respectively sold over the past 12 months. Currumbin Waters has demonstrated the strongest price growth for units with prices rising 7.5% over the past 12 months. The median sales price for units in Currumbin Waters is now $430,000 and with a median rent of $450 a week, they offer a rental yield of 6.4%.
The highest median housing rents in our area are $800 per week in Tallebudgera and for units $500 per week in Currumbin. Housing rental yields in Elanora are currently 5.2% demonstrating why the area is popular with investors. The time it takes to sell a house in our region ranges from 39 days in Elanora to 96 days in Currumbin, and the shortest median time to sell a unit is 17 days in Currumbin Waters.
If you bought your home in the last five or 10 years, now’s the time to get an appraisal to see how much you could sell for in late 2019/early 2020.