Market Analysis, August 2017, Salt Spring Island
We are…at the mid-point of our summer season.
An interesting picture of our market, in past several months…up & down, down & up. Lots of pauses en route to steadier outcomes. A definite sales volume increase.
On March 16, 2016, we experienced the beginning of a market recovery, after the almost eight year economic downturn. It was propelled by those people who had sold in Vancouver’s “hot market”.
Between mid-March 2016 and end of June 2016, we saw steady sales, mainly in entry level residential options. At the beginning of the recovery, sellers reduced to meet buyer expectation. Slowly, sales began to favour the seller, and that large spread between list and sale pricings narrowed dramatically.
By the end of July, 2016, along with this subtle beginning of a seller’s market, we began to see a developing interest in higher priced residential opportunities. Waterfront estate properties began to receive offers, in June and July.
Then: the provincial government brought in the 15% offshore tax in metro-Vancouver, in early August 2016, to cool Vancouver’s “hot” real estate market.
The tax did immediately crash Vancouver’s market.
It also stopped the secondary home market recovery…including on Salt Spring. We lost August/September/most of October in 2016. These months are usually very active in real estate sales on Salt Spring.
Then, on December 3rd, “real winter” set in all over the coast…including on Salt Spring. This once every 20 years La Niña weather pattern lasted until May 15, 2017. (Between October 1 and April 30, records going back 122 years, for cool temperatures and significant precipitation, were broken, on the entire Pacific Northwest Coast. For first time in my career, I would say that weather affected winter’s real estate outcomes).
Vancouver tax…plus long and unusual winter…no Spring market in 2017…it added up to almost eight months of “pause”. It appears that July 6/7 began the “season”, for this 2017 year. Short and intense outcomes perhaps?
In spite of the long pauses and haphazard connections, a steady attrition in listings had continued between 2016 and 2017.
The signs of an improving market: low inventory, higher buyer demand, the beginning of sales of undeveloped land.
The result of low supply and high buyer interest can be significant price increases. It may be that we will see such increases by Spring 2018.
At the moment, as we enter our main grid of action (mid-July to mid-October), we are seeing some small bidding wars, for unique properties, plus full-price offers, plus back-up offer situations. Sales of raw land lots/acreages are well underway.
Sellers are now in control of the improving trend, in the transaction moment. Buyers need to make their highest and best offer when considering a purchase. An improving trend means less latitude for a buyer to negotiate. More information? Call me.
Salt Spring in the Summer is a very pleasing experience. The Saturday Market in the Park, the Tuesday Farmers Market, the artistic offerings at ArtCraft in Mahon Hall, the events and gallery displays at ArtSpring, studio tours throughout the Island (pick up the map at the Visitor’s Centre), the Ganges Village galleries, the farm stands with organic produce, the hiking/walking trails to encourage the experience of the natural world, the kayaking and sailing opportunities in this part of the Salish Sea…the vineyard tastings, cidery, craft brewery, cheese-makers…superb restaurants creating great menus with local fare…ocean and lake delights…it’s called summer-summer, and is there to enjoy!