Tag Archives: Salt Spring Island Real Estate

Market Analysis, June 2017, Salt Spring Island

Restaurant For Salt, Salt Spring Island

June 2017

The interest in all secondary home/recreational markets continues…on Vancouver Island, on the Sunshine Coast, and on the Gulf Islands.

Salt Spring Island remains a sought-after destination…it is a “stand alone” community, with a year-round lifestyle opportunity, and is very attractive to those seeking more than just a “summer place”.

Salt Spring offers a hospital and good related health segment. There are three elementary schools, a middle and a senior school. There is an indoor pool, an arts centre (ArtSpring), a modern Library/Resource Centre, and myriad park hiking/walking trails to explore. In the heart of some of the best protected boating waters in the world, Salt Spring Island is beautifully sited in the Salish Sea.

Salt Spring Island, Skywater

Salt Spring Island, Skywater

B.C. residents) effectively capped growth on all the Gulf Islands. This control of growth, via strict zoning/density bylaws, has preserved a lovely yesteryear ambiance…yet all that is required for an optimum 21st Century lifestyle is immediately at hand, on Salt Spring Island.

With a micro-climate that supports vineyards, olive grove, orchards, small farm holdings, it is possible to enjoy a self-sufficient living choice.

The real estate market, though experiencing a fits and starts rhythm (offshore tax in Vancouver plus a once every twenty years burst of “real winter” caused significant pauses, approximately six months in total) in 2016…yet now, in retrospect, that 2016 year is showing itself as the sales volume increase year.

So far, in 2017, it continues to be about lack of inventory, continuing high buyer demand, and subsequent price stabilization…it may be that price increases will be a feature of the final 2017 market report.

A buyer’s market simply means lots of inventory and few buyers…prices remain suppressed. A seller’s market means little inventory, lots of buyers seeking property, and resulting buoyant pricings. It is always about supply and demand in a market driven industry.

June is an interesting month. A divide between winter-spring and summer-fall markets. Often quiet in the first three weeks, the serious “season” begins in that final week. July/August/September remain very active in sales, in all the secondary home/discretionary markets.

To date, from January 1 to close of May, the sales on Salt Spring are:

  • 10 between 159,000 and 199,500.
  • 12 between 200,000 and 299,000.
  • 18 between 305,000 and 396,000.
  • 22 between 400,000 and 487,000.
  • 17 between 500,000 and 599,000.
  • 9 between 625,000 and 690,000.
  • 5 between 710,000 and 769,000.
  • 8 between 800,000 and 899,000.
  • 2 between 900,000 and 945,250.
  • 7 between 1,075,000 and 1,750,000.
  • 3 between 2,200,000 and 2,500,000.

The listing inventory (residential/lots-acreages/commercial) remains very “thin”. Although prices have not yet gone up, they have stabilized…in many cases, properties are selling at full list price. Back-up offers are in play and a very few have been in mini-bidding war territory.

The last half of the year will showcase the rhythm of sales for 2017. Am not sure when we went to a late summer/fall market for actual sales, but that is the current tone. People may view earlier…but they often act later. Hmmmm….

Market Analysis, December 2016, Salt Spring Island

A small geographic space with a world-sized heart…that’s a good description of Salt Spring Island and the Southern Gulf Islands.

Hastings House

Hastings House

The Islands Trust, created by the Provincial Government in 1974, with a mandate “to preserve and protect” the environmental beauties of the Gulf Islands, for the benefit of all B.C. residents, has effectively controlled growth on all the Islands via strict zoning/density bylaws.

Salt Spring Fire Department

Salt Spring Fire Department

If you go up in a floatplane, en route from Ganges Village on Salt Spring to Vancouver, you will see the large swathes of green on the Gulf Islands…a mix of provincial and federal park reserves, CRD park reserves, Conservancy protected lands, owner gifted or covenanted land…an amazing natural gift to visitors and residents alike. The Gulf Islands have all been preserved from unbridled development.

Important, though, in this non-municipal form of governance, that 1974 is paying attention to 2016. The big problem in cities and towns seems to revolve around affordable housing. This is a problem on Salt Spring, too.

There is a range of age-groups and affluence on Salt Spring…a broad spectrum of people desiring to live here. There are no work-rentals, no affordable buy-in living options, and very few choices for the aging boomers to move to, when downsizing. So…few starter homes, no rental apartments, few downsizing choices. Hmmm….

Salt Springers are being asked if they would like to become incorporated in a Gulf Islands Municipality structure. The two elected Trust people (two per island) & the Trust documents would remain in place. The day to day running of the island would be via an elected Council (one of whom would act as Mayor). Keep informed!

On Salt Spring, December brings craft fairs (WinterCraft at Mahon Hall, plus Fulford and Beaver Point Craft Fairs), seasonal theatre & choral events at ArtSpring, gallery openings, studio tours, light-up in Ganges Village, Christmas on Salt Spring events, pop up markets in the park…special menus in our superb restaurants. Seasonal delights await the visitor!

What about that real estate market?

And, what about that real estate market? As we close out 2016, one can look back and see an upticking market. After an 8 year downturn in the secondary home coastal markets (Sunshine Coast, Victoria, Vancouver Island, Gulf Islands), Salt Spring finally saw a shift into a dramatic sales volume increase between mid-March and the end of July. Buyers were mainly from Vancouver.

The unexpected and sudden government 15% tax for purchases by off-shore buyers, in metro-Vancouver, at the beginning of August, created a “pause” in all the secondary home coastal marketplaces…those sellers in Vancouver’s “hot market” had been the buyers in all the “by choice” regions. On Salt Spring, we “lost” August/September/early October. Then, around mid-October, things began to become busy once again.

The bulk of sales remain to a Vancouver buyer. Slowly, we are seeing renewed interest from Ontario. We may start to see sales from U.S. buyers…our low Canadian $ against the U.S. currency makes a real estate purchase here an interesting investment.

So many unknowables in the world: currency instability? Inflation/deflation? Equities or hard asset investment? Shifts in government? The impact of the post-Internet world just rolling on….

Change is the mantra of our immediate time.

Part of that: Boomers and Millennials. Different strokes for different folks. Important to understand the remarkably different ideas between these two significant demographics.

Stay tuned as well for the continuing changes to the real estate industry. Post-Internet dynamics change established models.

Salt Spring Island and the Gulf Islands are “by choice”/discretionary regions. The buyer has to first choose the specific Island…and then decide for the actual property on that particular Island. Time is a component of sales in all such secondary home/recreational areas…regardless of market trend in play.

Although it’s recent that sales volume increased (mid-March after 8 years of “flat”), prices have not yet increased. Stabilized, yes…and some properties have been selling for list price. Inventory is “thin”.

The 2017 real estate market kicks in here by mid-February. That’s just around the corner. At this time of year, some transactions will complete in January…perhaps for tax reasons. The process will have begun in this calendar year, though.

So…as we close 2016: strongest sales rhythm since 2006…very low inventory…price stability & sales at list price…all auguring for further improvement in the secondary home markets in 2017. The temperate climate and that slightly “apart” security of the Gulf Islands is also of appeal.

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.

salt

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.

Market Analysis, May 2016, Salt Spring Island

Market Analysis, May 2016, Salt Spring Island

Market Recovery - Salt Spring Island

Salt Spring Island

Signs of a Seller’s Market Recovery

Yes, it’s really true…after an 8 year market downturn, we are finally seeing a resurgence of authentic activity in our secondary home/discretionary real estate market.

Many listings had followed the market down. Fine properties and well-marketed…but few buyers around. In a downmarket, buyers are scarce. In past five weeks, many of these long listed properties have now sold. Very few new listings are coming onstream to replace these steady “solds“…this is the sign of a seller’s market.

At the moment, it appears that sales volume has doubled over the same period as last year and that prices have stabilized (meaning that the buyers are having to offer close to or at list price to secure a property). Price rises and back-up offers may be next.

Salt Spring Island Ganges Harbour - Market Recovery

Salt Spring Island Ganges Harbour

Vancouver Origin

This authentic recovery is very new…began from one-day-to-the-next, approximately 5 weeks ago. Most buyers are from Vancouver. They have sold properties in Vancouver’s hot market, and are now seeking alternative places.

In late Fall of 2015, these property seekers were first looking on Sunshine Coast & in Okanagan communities.

Finally, it’s now the turn of Salt Spring, Gulf Islands, and Vancouver Island, to be considered as the new lifestyle choices.

The desire for a unique hard asset investment is strong again. The “safe haven” seeking may also be a part of sales in our beautiful coastal region. The natural rhythm of a market recovery…every 10 years there is an uptick?…is also a part of this return to a strong sales pattern. There is never just one reason for a market recovery.

Recoveries are never even-handed, especially when they first begin. There remain very pleasing properties at approachable prices. There are still opportunities for a buyer.

As residential offerings continue to thin out, it may be that an undeveloped land purchase will be in a buyer’s favour. Build a cottage, or barge on a home being saved from a city’s destruction, or consider a package home.

A renovation project on great land should always be considered.

Call me for ideas that work.

Creative financing can be a buyer’s friend in an upmarket trend.

November 2015, Market Analysis

November 2015

Fulford Harbour, Salt Spring Island

Fulford Harbour, Salt Spring Island


We are now sliding into the Fall-into-Winter moment.

There is often a perception that Salt Spring, the Gulf Islands, and Vancouver Island are seasonal markets…busier in late Spring and Summer…with less happening in the supposed “off season”. Not so.

It’s important to be presented to the marketplace at all times, in this post-Internet era. The Google search eye never sleeps. Someone, somewhere is searching.

In our secondary home/discretionary region, on this thin strip of the beautiful Pacific Northwest Coast, potential buyers now turn up, physically, between mid-summer and late fall…to view what had caught their attention earlier, on the net.

Many sales thus take place between August and end of the year. This catches many sellers off guard, if they have only a Spring/Summer mindset for a possible sale.

At this point, in a still busy sales time, we can point to continuing signs of an authentic market shift…in a strong upward direction:

  • Thinning inventory.
  • Rising price levels in the entry level residential priced category.
  • Sales of undeveloped land.
  • Stronger interest in higher end residential options…with more sales in this segment.
  • Buyer desire to buy a retirement or recreational or investment property.
  • Concerns over currencies making hard asset investments of interest.
  • Media reporting on all the above.

No matter the market trend in play at any time, there is always opportunity in a property purchase. Over time, a real estate investment is an important one. It is a wealth builder and a wealth preserver, although it is a “long tail” investment decision.

If you are considering a purchase of a Salt Spring Island, other Gulf Island, or Vancouver Island property, call me. My strong referral network will connect you to the best agents if your wish list lies in an area outside my circle of expertise. Benefit from my knowledge, of both inventory & of trends…let me help you to discover the right property for you.

The transition period between a buyers and a sellers market is rapidly closing, in our Gulf Islands area.

In the entry level priced residential properties (below $550,000, say?), we are already seeing sellers conditions. In undeveloped land sales, it’s still early days. Waterfront & superlative ocean view acreages always see earliest activity, in upper tier residential (over $900,000), and this pattern has just started (since August?)…waterfronts and equestrian friendly acreages are currently most in demand. The spread between list and sale price points is rapidly narrowing in all property types.

These are the key factors pointing to the close of the transition period: narrowing price spread, thinning inventory, sales volume increase.

Our coastal secondary home regions only began to see “soft” recovery in late 2014. Now, although still not even-handed, and many properties still not seeing “fast sales”, we are almost through the transition period…many people, locally, liken both our current real estate and our small business recovery to 2006/2007 patterns. Pre-economic collapse of 2008, then. All good news!

How may I help you to buy your special Salt Spring Island, Gulf Island, or Vancouver Island property? Call me! Look forward to working with you.