Tag Archives: location

Market Analysis, November 2016, Salt Spring Island

Here we are, segueing into the last two months of 2016.

Although not as buoyant as in “the season” (May to October), the months of November and December still offer both important visitor experiences (tourism) and significant real estate sales.

For the first time in several years, Salt Spring appears to have returned to its former “seasonless” nature.

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People do visit throughout the year. The Gulf Islands are located in a micro-climate that is very temperate. Salt Spring offers a year round pleasing visitor experience and real estate transactions occur throughout the year.

For most of 2016 the buyer for Salt Spring properties came from Vancouver. These buyers had sold in Vancouver’s hot market. They were interested in buying down (in size & in price), putting money in the bank, and exploring a new location lifestyle.

This buyer profile plans to be a year round resident…which augurs well for year round community endeavours (such as the “shop local” movement). It is different from buyers in previous years (with Alberta & the U.S. delivering most purchasers), who may have been more seasonal.

The 15% tax for offshore buyers in Vancouver, law in early August, did immediately cool Vancouver’s marketplace. The impact on all coastal secondary home markets, including on Salt Spring, was also immediate. Vancouver’s sellers had been the buyers in all our coastal secondary home marketplaces.

A post-tax pause in activity took place here, on Salt Spring, in August & September. By mid-October, sales once again began to take place, although not with the same fervour seen in that mid-March to end of July period.

That said, inventory is low in all property categories. Prices have remained stable. Sales are often now occurring at list price. The bulk of sales still remain in step-in ready residential options.

Although essentially seasonless, it is busier between early May and mid-October, with tourism. I do think there is a connection, in secondary home/recreational regions, between a successful visitor experience and a real estate sale. Oddly, though, someone who views in July might wait till November to offer.

Secondary home/discretionary areas have their own rhythm, and it’s completely different from the patterns of a primary residence/city environment.

One chooses “for” a secondary home location…no one “has to” purchase on Salt Spring or on another Gulf Island. It often takes two & sometimes three visits for a buyer to decide on the location of a recreational purchase. Patience is always a requirement in real estate sales, regardless of market trend in play, in all discretionary regions.

At the end of October, the sales stats on Salt Spring were:

  • 28 sales up to 200,000
  • 32 sales between 200,000 & 300,000
  • 50 sales between 300 & 400,000
  • 56 sales between 400 & 500,000
  • 50 sales between 500 & 600,000
  • 31 sales between 600 & 700,000
  • 14 sales between 700 & 800,000
  • 13 sales between 800 & 900,000
  • 8 sales between 900,000 & one million
  • 20 sales between one and two million
  • 4 sales between two and three million
  • 2 sales between three and four million
  • 1 sale at four million even

(Most sales between one & four million were waterfronts).

The good news for Salt Spring: a return to busy days in tourism, with accommodations providers, restaurants, car & scooter rentals, kayak and whale-watching providers, retail shops, all saying it was their best season ever. That kind of buoyancy does have an impact on a real estate market.

Lots of events happening on Salt Spring in November and December: craft fairs, studio tours remain open, special events at ArtSpring, evening classes (always wanted to learn Japanese?), Salt Spring Folk Club monthly showcases, special harvest and celebratory menus at our great restaurants, WinterCraft at Mahon Hall, special Christmas/New Year events, and always the beauty of the Island, welcoming us all to simply enjoy.

It’s true that all world economies are a part of the globalization movement unleashed by the Internet shift in communication. The Internet changes concepts of boundaries. Initially, it may have appeared that “large population venues” were most important.

It’s also possible, though, that we are now seeing a move to localization, at the same time as continuing globalization. This may be the arrow all smaller communities have been seeking. Ganges Village on the same level as Toronto? Or New York? Or Beijing? Hmmm…. The personal and local becomes the global? Content really is king?

Many entrepreneurs are gathering on Salt Spring…ideas created here, coupled with a digital platform for presentation everywhere…that sounds like opportunity. And your thoughts are? Always welcome!

Market Analysis, July 2016, Salt Spring Island

‘Tis The Season!

July is the mid-point in our year and is also the beginning of our “real season” in real estate showings and subsequent sales. Salt Spring and the Gulf Islands, and many of the Vancouver Island communities, are secondary home markets. They are busiest between July and October.

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Secondary home/recreational areas do not follow the sales rhythms of primary residence/city regions. Thus, although eventually propelling activity in discretionary areas, Vancouver and Victoria real estate outcomes are quite different from those on Salt Spring or Mayne or Gabriola or in Parksville.

The huge sales volume in Vancouver, with resulting price increases, appears to now be mirrored in some parts of Victoria. That kind of sales frenzy is never the outcome on a Gulf Island or on Vancouver Island…the Islands are “by choice”/discretionary areas. By choice, I will buy on Salt Spring…by choice, I’m moving to Pender…by choice, I’m considering Qualicum…and so on.

What does this mean for a seller in these secondary home regions?

It’s become essential to have maintained one’s property.

It may be that all those popular HGTV style home shows have created a buyer who expects things to be “done”. Buyers do not want to call in a contractor…they are not looking for a fixer upper or a handyman special. If one has that kind of deferred maintenance property to sell, it may be necessary to come to market with a severely below market price tag. It’s interesting, this lack of buyer desire for a property needing “work”.

A new roof, a new deck, a septic system in good order, a well with water treatment system in place…these are now considered essentials. Interior items? Kitchens and bathrooms remain the two key components that will attract a buyer’s interest. Next would be flooring choices. Home ownership does bring with it consistent maintenance care. Renovations to update an older more dated home are often required.

Stiff Competition Remains

In our global post-Internet world, all secondary home areas are in competition with each other. It’s not just about a Salt Spring property being in competition with another Salt Spring home. A Salt Spring property is now competing for a buyer’s attention with a home on Galiano or on Thetis or in South Cowichan or in Parksville or in Courtenay/Comox…and also in Sidney or in Victoria. That means that a buyer also has to choose for the community itself, and not just a house in that location.

One thing that is of interest for any purchase on any Gulf Island: the form of governance has “capped” growth via strict zoning/density controls. The Islands Trust’s mandate (in place since 1974) is to preserve and protect the Gulf Islands. There is no opportunity then to see an explosion of growth on any Gulf Island.

On Salt Spring, as one drives about the Island, one is pretty well looking at “what is”. This retained beauty is important, but a cap on growth also leads to an escalation of prices, over time. Buyer interest coupled with low inventory of properties does lead to price stability and price rises.

The past downturn in all secondary home markets, and globally so, has eased or ended. It was a long eight year downturn. That lack of buyer interest did lead to lots of inventory and to lower prices. This is apparently now over.

Sales volume has dramatically increased on Salt Spring and inventory has returned to low levels.

The same dynamic is in play on other Gulf Islands and on Vancouver Island.

The difference from previous times? That competition factor. A house in Qualicum is competing with one on Salt Spring which is competing with a property in Sidney…the playing field between locations has broadened.

This means that one has to sell Salt Spring itself, not just the property located there. Hmmm….another reason to shop local and so to ensure the continuing allure of Salt Spring Island? Interested in how to help to do this? Connect with the Chamber of Commerce and become a supporter of the entire community.

At this mid-point moment: between $300,000 and $750,000 price range, there are very few residential options left. Spring sales volume doubled and little new inventory came onstream. Low inventory plus renewed buyer interest leads to price increases.

Now, we are seeing interest in undeveloped land…with a view to putting up a modular or packaged home…or building a cottage and then the house. This scenario might allow one to remain at budget.

Slowly, we are seeing the upper tier priced residential offerings capturing interest. Inventory is also thin in that price point. There is renewed interest in commercial options.

August, July 2014, Market Analysis

The main real estate sales window on the Pacific Northwest Coast seems to have evolved into a Summer/Fall market.

This may be the case on Vancouver Island, on the Sunshine Coast, as well as on the Gulf Islands.

Secondary home/discretionary markets have a different pattern from primary residence/city markets. “By choice” regions have been slow to recover from this past six year downturn.

At this very beginning of July, the uptick does appear to be underway, although it’s not an even-handed recovery & most sales to date still remain in the entry-level residential category.

It’s essential for a seller (& their realtor) to showcase listings throughout the year, in order to attract that mainly non-local buyer profile…but the physicality timeline for this non-local potential buyer to visit an area/view properties will mainly occur in July/August/September/October….perhaps into early November, depending on Fall weather pattern.

Along with this later arrival time, to view property opportunities, we are also seeing more “interviewing of areas” first.

With the “boomer” retirement wave just starting, & a strong desire from many Canadians from other provinces to choose a coastal retirement location, it makes sense that they might vacation here a good year or two before actually moving to a specific location.

Thus, Salt Spring & the Gulf Islands & Vancouver Island are in competition with each other…the potential purchaser has to “buy” the specific locale, first, before seriously looking at a property to purchase. Why here? Why not there? Serious questions!

The Internet search engines do allow a global discovery/audience. All that potential choice of destination, though, can make decision-making slower…if one can go anywhere for a retirement or a recreational choice, then that very broad choice parameter might lead to hesitation in decision…one wants “to be sure”.

Hmmm….

Regardless of market trend, it can take one to three years to sell a specific property in any particular secondary home area. Time is always a component in the choice dance. Buyers set markets, not sellers or realtors. It’s only very recently that buyers are once again looking at the secondary home/recreational marketplaces.

The good news? Slowly slowly that secondary home/recreational marketplace is on the uptick, after that 6 year downturn. While mainly busy in residential sales of properties below 700,000, in the Gulf Islands/on Vancouver Island, the “real season” is just beginning…by October, sales should be occurring in all property segments.

For Salt Spring Island, the Gulf Islands, Vancouver Island? Slow but sure recovery…& eventually activity will be seen in all price points/property types.

Our market sales window has truncated down to July/August/September/October.Offers may come in later, but chances are that the viewing took place in those four intense months.

If a realtor is actively presenting a property, year-long, then a seller needs to have faith that they will deliver a buyer in the physicality timeline. The sale process is a slow one, for many reasons, in all secondary home markets.

In lieu of a monthly market update, this 2014 recovery year, I plan to let July/August take place…by mid-September, the shift should be clear, with provable statistics. Will report back in with verifiable statistics then, as opposed to reasoned projections right now. Important to let the beginning weeks of our “real market” take place. The rhythm/speed of our recovery is not yet totally clear.

Meantime, any questions, please contact me. I offer weekly driveby lists of all listed properties (not just board related options), plus weekly “solds to date” reports of all sales (not just board related options). The full information is thus always possible with me.

In September, I will report back with the total “actuality”, to that point. Meantime, it’s Summer, in the supremely beautiful Pacific Northwest Coast…enjoy!

Looking for your special piece of paradise? Your best interests are my motivation.

Whether buying or selling, please contact me for excellent service & all information. Knowledge is key.

Thank you!

Salt Spring Island: Arts, Music & History

Salt Spring Island: Arts, Music & History

Well done, Birgit Freybe Bateman! 70 photographs are crated and on their way to Russia (to the Stroganoff Palace
 of the Russian Museum, to be exact). This retrospective of Birgit Bateman’s amazingly evocative and thoughtful photography is called: “Mindful Vision”. On Island, we’ve been lucky to view Birgit’s work at such presentations as ArtSpring’s “Photosynthesis” show. The “Mindful Vision” show will be seen during the peak tourist season, between July 2 and August 30.

Salt Spring Woodworks has had a name change: same location and same beautiful offerings, just a re-name to Duthie Gallery. A physical change to the gallery itself mirrors the name change. The evocative Summer Lights exhibit will be back in July/August, Thursday to Monday, 9 to 11 p. m. Currently, the gallery is open Friday, Saturday, Sunday, or by appointment.

Alan Gerber plays Moby’s tonight, a dinner music show, $12 cover charge, show at 8 p.m. It’s a WOW…wave if you see me!

Saturday, May 14th, it’s an opening reception at Starfish Gallery in Grace Point Square…featuring Susan Haigh and introducing Beverly Chicoine. Show runs from May 14 to June 4th.

Mark your calendars: Viva Voce performs at ArtSpring, Saturday, May 28th, 8 p.m., and Sunday, May 29th, 2 p.m. Conductor: Debbie Toole, accompanist: Chris Kodaly.

House concert, May 14th, with John and Michelle Law: folk, bluegrass, acoustic country. RSVP to 250-537-1059, plus ticket info.

ArtSpring benefit on Saturday night: Joy Kogawa will read from her lifetime of award-winning creative work, at ArtSpring Gallery. MC will be Briony Penn. The evening is presented by the Land Conservancy of B.C. Doors open at 6:30.

Tonight is a very important evening at Mahon Hall. The Salt Spring Arts Council‘s steering committee for a new arts school will present a distillation of recent community conversations at a wrap up session. Starts at 6:30…see you there!

Don Conley presents Back to Bach…the last presentation of Simply Organic, for the Spring season. Don will explore the development of the concerto form during the Baroque period, which was a time of flowering of emerging musical forms. Mark your calendar: May 18th, 10:10 a.m., at All Saints by the Sea. Lucky Islanders, to have this in our midst!

This Saturday, the Salt Spring Island branch of SPCA invites the community to an animal-themed day of fun. From noon to 4 p.m., at location below Gulf Islands Veterinary Clinic. Check this fund-raiser out!

Live music venues: Harbour House Hotel, Friday, Saturday, Sunday! Moby’s Oyster Bar (Alan Gerber tonight). Treehouse Cafe…tonight, catch Peter Prince. Friday, it’s the so talented Billie Woods. The 111 nights of live music (Music Under The Stars) begins in May 16th!

The Salt Spring Forum presents Maher Arar, at ArtSpring, May 21, at 7:30 p.m. He speaks on Democracy, Human Rights, and the Middle East. Call ArtSpring for ticket info.

Lots to see and to do…enjoy the Spring Season!

Southern Gulf Islands Real Estate, BC

3 Replies

For the past 5 years, I’ve had a personal office in “downtown Ganges“, the seaside village, and that’s where I’m now located. It’s the front office, facing the main street, (with a view of the Harbour and the marinas, and the boardwalk and the park area), in the Clement, Murphy, Woodward law office building (at the corner of Lower Ganges and Rainbow Roads). There’s a parking lot behind the building (access off Rainbow Road), and my office has a side entrance (next to the lawn area).

In deciding to be licenced through the Sea to Sky Premier Properties group (& their Whistler office), it was a desire to bring amplified exposure to my listing database that propelled my move. There is no “local market” on Salt Spring Island and the Southern Gulf Islands, and it’s been like this for several years, now.

The Southern Gulf Islands became secondary home/discretionary marketplaces, and local advertising is only seen when this buyer profile physically turns up on Island; it doesn’t “bring them”. Targeted print adverrtising, where the buyer profile lives, is also essential, along with use of the local media options. An extensive internet linked presence is also essential.

The information has to get off Island, now, or no one will come to view the incredible properties and opportunities available on Salt Spring & the Southern Gulf Islands.

I am the local representative, then, of the Sea to Sky company, on Salt Spring Island and the Southern Gulf Islands.