Market Analysis

Salt Spring Island real estate in depth monthly analysis by Sea to Sky Properties’ broker, Li Read

October 2024 – Market Analysis – Salt Spring Island

The Real Estate Market in Fall

October arrives with harvest season fully in play, with shorter days, crisper nights, and star-watching as the winter constellation of Orion climbs up the sky. Special events at ArtSpring, gallery openings in Ganges, Parks and Recreation offerings at the indoor pool, and the Canadian Thanksgiving Holiday Weekend mid-month.

The real estate market is also fully in play with the Fall Market (often called the “second Spring”). People may have viewed opportunities earlier and now have decided to offer. In some cases, new listings pop up as owners who chose to enjoy another summer have now listed for Fall. It’s a buoyant time.

Market Trends and Buyer Hesitation


Low inventory continues. Although the summer season (June, July, August) was quiet in sales across Canada, prices remained stable. The BOC (Bank of Canada) interest rate cuts (three so far) have not generated a corresponding buyer action. Buyers are still hesitant.

If a buyer needs to stay under a million on Salt Spring, the choice is a townhome. A single-family home requires one to consider a purchase in the range of 1.1 to 1.45 million, and this range will most likely require upgrades or renovations. To find a ready-to-go home, one will need to consider a price range between 1.6 and 2.1 million. Waterfront options are higher. If upgrades are needed, oceanfront listings can be found in the 1.7 to 2.3 million range. A ready-to-go waterfront home will most likely fall between 2.5 and 3.8 million. Estate properties are higher.

Post-Pandemic Real Estate Landscape

The rush to leave urban for rural, following the pandemic closures in 2020, created higher prices and low inventory. 2021 was characterized by many “over ask” and unconditional offers. Despite pauses in 2022 and 2023, prices remained stable and inventory low.

Projections call for continuing price stability and low inventory as we look toward 2025 and beyond. As long as the housing shortage persists and immigration grows, the economic reality of low supply leading to high prices will continue. Government efforts to address the housing crisis have not worked so far.

Lifestyle and Ownership Opportunities


Although a Gulf Island purchase might have been recreational several years ago, it is now mainly a lifestyle choice, and people plan to live year-round where they buy. The Islands Trust form of governance (in place since 1974) also keeps inventory low. Growth has been controlled through severe zoning and bylaw restrictions.

It’s interesting that an increase in renovations since 2020 is another reason for price increases. Owners are increasing the value of their properties, whether they sell them or not.

So, here we are, at the very beginning of October. Many consider the early part of Fall one of the loveliest seasons on the great Pacific Northwest Coast. It’s a good time to visit, explore opportunities for a purchase, and discover the many elements that make up the unique Gulf Islands/Salt Spring Island lifestyle: agriculture, arts, alternative health options, respect for and enjoyment of the natural world.

Already here? Be a visitor in your own backyard. Wanting to be here? Let’s explore ownership possibilities. Consider a land purchase and investigate new manufactured home options (recent changes in construction techniques can benefit buyers). What about shared ownership? A lawyer can explain the various ways to benefit from shared ownership with family or friends. Is it for you?

Meantime, October welcomes the harvest bounty of this dynamic time of year. Enjoy!

September 2024 – Market Analysis – Salt Spring Island

September smiles its welcome

Here we are, at the very beginning of September.

A month that holds both late Summer and early Fall in its calendar, and enjoys the harvest season largesse. Farmers Markets, Fall Fairs, farmgate stands…restaurants showcasing the bounty of local farms…it is a time of delicious enjoyment of the “season of mists and mellow fruitfulness” (as beautifully described by the English Romantic poet, John Keats).

September Trend Lines

And what about the trend lines of the real estate market in our secondary home/recreational marketplace? Inventory remains low (as soon as one looks at type and price, one sees this) and strong interest from urban dwellers in moving to rural regions (a desire to be apart and self-sufficient) continues. A desire to preserve capital (the value of currencies) remains a factor for some real estate investor buyers.

Buyers have been cautious throughout the Summer months. The two interest rate cuts from Bank of Canada did not encourage sales. A third cut is expected in early September. This cautious reaction was seen throughout Canada in July and most of August.

What is the Main Buyer Profile on Salt Spring

The main buyer profile on Salt Spring and the Gulf Islands continues to be from Vancouver/Lower Mainland. Outcomes in Vancouver create outcomes in the recreational/rural areas. Pauses there create pauses locally. A Fall Market (often called a Second Spring) has long been a feature of Salt Spring and Gulf Islands sales activity. We are just starting into this usual local trend. It may take till early November to see accomplished outcomes.

The lack of inventory is projected by CMHC (Canadian Mortgage & Housing) to continue for several years…strong immigration and years of inadequate residential development combine to keep real estate pricings high. Although governments have brought in measures to alleviate this lack of product, their mainly negative attempts have not worked, to date. The Islands Trust form of governance (in place since 1974) also keeps growth curtailed on the Gulf Islands.

A Sellers or Buyers Market?

So…the long term issues in place continue to keep prices higher and product options low. There are fits and starts rhythms, but overall the market has remained even. It could still be described as a sellers market. There are always opportunities for a savvy buyer, however, regardless of trend in play.

We enter September with the amazing Fall Fair (two days on Salt Spring) awaiting our pleasure. Don’t miss this annual event, mid-month. Labour Day holiday weekend is followed by back to school. The arts community showcases receptions and openings…check the Ganges galleries, and ArtSpring. Catch ArtCraft before its seasonal closure. Live music venues continue…pop into the Visitors Centre for the latest on events. Shorter days, cooler mornings/evenings and warm summer afternoons…kayaking discoveries of our marine lifestyles…perfect star-watching time in early evenings.

September is also a time to enjoy visits to all the Gulf Islands…it’s the softer season. Feed the body and the soul. Be a tourist in your own backyard, and rediscover the gems that make up the acclaimed Southern Gulf Islands/Salt Spring Island.

September smiles its welcome…enjoy!

 

August 2024 – Market Analysis – Salt Spring Island

August 2024

Salt Spring Island

August ushers in the bittersweet finale of summer’s symphony.

Well, here we are, at the very beginning of August…still in Summer, but with a definite sense that Fall will arrive lickety split. Already, it’s darker in the early mornings and definitely darker much earlier in the evenings. Earlier sunsets deliver incredible star-watching opportunities, but facing forward towards the shortest day of the year is a reminder that the summer season is a brief one, and needs to be savoured.

B.C. Day Weekend & Summer Activities

Salt Spring Island
Salt Spring Island

August opens with the B.C. Day holiday weekend, and lots is happening on Salt Spring and the Southern Gulf Islands. Check in with the Visitors Centre in seaside Ganges, to see what’s on.

  • Live music venues (Treehouse, Moby’s, Legion, Centennial Park)
  • Al fresco dining opportunities at our great restaurants
  • Saturday Market, Tuesday Farmer’s Market
  • Hiking trails (Ruckle Park, Mt Erskine, Channel Ridge)
  • Wine tastings (Garry Oak), cider tastings, craft brewery
  • Salt Spring cheese, farm gate stands
  • Restorative spa treatments, alternative wellness options
  • Studio tours, gallery receptions, ArtCraft, ArtSpring
  • Sailing, kayaking, paddle boarding, whale watching

Salt Spring does deliver on the essentials: a peaceful enjoyment of the natural world welcomes one.

Salt Spring Island
Salt Spring Island

Real Estate Trends

At this very beginning of August, what about that elusive real estate market trend? Although some few new listings did appear in July, for “the season”, the inventory remains low. As soon as one describes type and price, in seeking a real estate purchase, it’s clear that there’s not a big choice for a buyer in their preferred category.

The Bank of Canada has brought in two interest rate reductions, but this has not pushed buyers to rush to action. Buyers are being thoughtful. The Gulf Islands are not first time buyer locales. Low inventory, relatively stable pricings, concern about lack of appealing choices lead to “wait and see” outcomes. Most listings below one million remain in the townhome/strata segment. Single family homes require a buyer who can look up to 1.45. Many properties in these low million plus price points still need upgrades/renovations.

CMHC (Canadian Mortgage & Housing) reports that the lack of housing product will be a factor for some substantial time (2030?). Immigration coupled with lack of housing equals continuing price stability, if not serious escalation. Reasons for seeking a real estate purchase in a recreational area remain the same: a desire to drop urban for rural (seeking safety) and a desire to preserve capital (hard asset investment choices). Most owners do not want to be sellers.

At this very beginning of August, mixed outcomes are evident, with both entry level and luxury offerings finding buyers, with both price reductions at the point of an offer and “over ask” situations also in play. It may take until late October to see completed summer sales, and a corresponding market report…things are underway right now. Most buyers continue to be from Vancouver/Lower Mainland.

More information on what’s for sale and what has sold? Contact me.

Salt Spring Island

August sees Fall Fairs in many rural locations, reminding us of the fruition cycle. Back to school ads are with us. Yes, it’s still Summer, but there’s a sense of rushed pleasures, not the drifting and dreaming enjoyment of June or July, with their sense of endless time.

Summer…a warmth that inspires. The hammock calls. Remember your Omar Khayyam…the bird is on the wing. August’s summer pleasures are calling…catch them…and enjoy.

July 2024 – Salt Spring Island

July 2024

 

July welcomes the ease of summer pleasures.

Canada Day on July 1st is the anchor celebration. Check out the Visitor’s Centre for all the special offerings on Canada’s birthday (including the classic car show).

Summer Activities

Markets & Food

  • Saturday Market
  • Tuesday Farmers Market
  • Wine tasting at Garry Oak
  • Cider tastings (two cideries)
  • Olive grove
  • Craft brewery
  • Farmgate stands
  • Al fresco dining restaurants

Outdoor Activities

  • Hiking trails: Ruckle Park, Mt Erskine Park, Channel Ridge
  • Swimming: Vesuvius Beach, St Mary Lake, Cusheon Lake, Weston Lake
  • Kayaking
  • Whale watching
  • Drummond Children’s Park

Arts, Culture & Leisure

  • Studio tour
  • Village galleries: ArtSpring, Ganges Galleries, ArtCraft
  • Live music venues: Moby’s, Legion, Treehouse
  • Restorative spa experiences
  • Unique shops and specialty offerings

Experience the creative and entrepreneurial spirit of the Gulf Islands. Take your ease and enjoy the summer pleasures!

Real Estate Trends

Real estate trends as we glide into the summer season? Although there can be lengthy pauses in action en route, the real estate market has seen continuing low inventory coupled with significant buyer interest for some substantial time…the effect of this ongoing trend is currently expressed in random pricings (stable, soft escalation, reductions at point of an offer… all are in evidence). This mix in outcomes highlights the fluidity of today’s world. The watchword of our time is “uncertainty”. This results in a stop and go pattern for buyer action, but it remains consistent.

Since 2016, most buyers in the secondary home/recreational regions have been from Vancouver/Lower Mainland. There have been ups and downs in market conditions over this timeline, but overall real estate has strengthened in value. Lately, we are seeing renewed interest from both Alberta and Ontario.

Most owners do not want to be sellers. The buyers arriving to view are seeking to drop urban for rural. There is always some increase of listings in summer/early fall, but not in significant numbers. As soon as one categorizes by price and type, one can see that the inventory continues to be very low. Buyers do not have a lot of choice in their preferred categories.

The push for rural over urban is one buyer trend and another is the desire for good hard asset investment. Buyers are concerned about currency issues and see ownership in a unique area as a preservation of capital decision.

The Gulf Islands have become a late summer/fall market, with prices generally higher than nearby Vancouver Island due to limited inventory.

Islands Trust and Housing

The Islands Trust, established in 1974, has capped growth on the Islands with strict density controls. This has led to consistently low inventory, regardless of market trends. The ongoing housing crisis across Canada is particularly pronounced in the Gulf Islands due to these restrictions.

Looking Ahead

So, we have arrived at the beginning of the last half of the year. Several years ago, the Gulf Islands became a late summer/fall market. It is a gift to be able to own and enjoy a Gulf Islands/Salt Spring Island lifestyle. Prices have always been higher than on nearby Vancouver Island, due to lack of growth inventory. The Islands are not really first time buyer territory. New ownership models may become a viable way to be a part of living on a Gulf Island…to own jointly with friends, or family. Single family ownership may evolve.

July… time to enjoy this season of warmth and largesse, to welcome the sense of ease it brings, to be inspired by sunsets and star watching opportunities.

A brief season. Already the days are becoming shorter. July… catch it! Enjoy.

Salt Spring Island, June 2024, Market Analysis

June’s Beauty

Lovely June is here…the month of roses…in gardens and parks and also wild at road edges. An elegant flower, an inspired fragrance…worth seeking out at this meteorological start of Summer.

Blossoms in orchards have spun their way to pastures to allow budding fruit to grow forward. The great Pacific Northwest Coast offers May to September as key months…late Spring-into Summer-into early Fall. June brings the beginning of summer vacations, weddings, graduations, family events…and Nature speaks the tongue of beauty. So important to observe.

Real Estate Market

The real estate market can be quieter in early June, perhaps reflecting the hiatus of family events. By the third week of the month, the Summer Market kicks in. Inventory remains low, and in spite of interest rate effects buyers are willing to make offers again. The pause of uncertainty seen in 2022 and most of 2023 is over as we continue through 2024. The buyer profile remains mainly a Vancouver/Lower Mainland purchaser.

Sales Trends

  • Higher end sales are occurring, but the main sales are still below 1.3.
  • Townhomes listed below a million are active.
  • It is rare to find a single family home ready to enjoy that is listed below a million.

Market Dynamics

Change remains the watchword of our time. Changes to the Real Estate Act continue. The impact of AI remains a factor. This is an election year in B.C. (vote in October), and that brings party discussions to the fore. Global uncertainties continue. Currency concerns and a desire to drop urban for rural continue as key motivators for buyer action. Most owners do not want to be sellers.

Current Listings and Sales

At this very beginning of June, there are approximately 115 residential listings on the market. Some of these are properties listed before, now returned to market for perceived Summer activity. Most listings below one million are townhomes (strata zonings).

Salt Spring Island

Salt Spring Island

At this very beginning of June, there are approximately 44 Land listings on the market…not separating out lots, acreages, view, waterfront, pastoral options.

At this very beginning of June, there have been approximately 66 sales to date:

  • 43 of these sales were below one million.
  • 17 of these sales were between one and two million.
  • 4 of these sales were between 2 and 3 million.
  • Two sales between 3 & 4 million and one at 9.9.

More information on “what’s for sale” and “what has sold”? Contact me for further details of property types and initial price points.

June Activities

Meantime, it’s amazing June. Art galleries in Ganges are showcasing new works for the season, studio tours are underway, tastings at wineries and cideries, craft brewery, live music venues entertaining us, spa treatments to ease us into the new season, seasonal menus to celebrate at our great restaurants and coffee stops, the start of ArtCraft at Mahon Hall, beachcombing and picnics, sunset viewings on the longest day of the year, sailing races, whale watching, hiking/walking trails beckon…lots to enjoy!

Salt Spring Island

Salt Spring Island

June…a reminder to be paying attention to Nature’s largesse and to truly enjoy. Yes, lots of concerns out there in global issues. Turn off the phone. Take Five (thank you, Dave Brubeck). This is the season to sit and ponder and observe the delights of June. It’s spectacular. Summer is here…smile!

Salt Spring Island, May 2024, Market Analysis

Salt Spring Island and the Southern Gulf Islands

Here we are, at the very beginning of May, long considered the start of the most alluring months on the entire Pacific Northwest Coast…and those on Salt Spring Island and the Southern Gulf Islands would agree. May to October are the key delectable months in our local world, taking in Spring, Summer, early Fall. Lucky Salt Springers to be enfolded by beauty. So important, no matter the geopolitical concerns that underline our time and bring worries our way, to enjoy this annual splendour of Nature.

Real Estate Market

The real estate market on Salt Spring and the Gulf Islands is showing good action again. Most buyers still continue to be from Vancouver/Lower Mainland. A desire to leave urban for rural remains a key factor. A newer reason for a property purchase might be a preservation of capital consideration. An interest in hard asset investment could be a major reason for owners not wanting to be sellers, unless they “have to”. Low inventory, coupled with renewed buyer action (the pause in activity in 2022 and most of 2023 is over), does lead to price escalation. As a secondary home marketplace, Salt Spring and the Gulf Islands do follow their own pattern.

Seasonal Market Trends

  • Early Spring (includes March Break) can show sales action, mainly in entry level price points. This mainly weekend activity runs to late April.
  • Early May brings activity in all price points/ property types. This goes to early July.
  • The summer market includes early July to late September. It might be the busiest time for showings.
  • The late Fall Market can be active, even with changes in weather patterns.

People do buy throughout the year, but it is true that most sales action occurs between mid-March to late October. There is no local market, and since 2016 most buyers have come from Vancouver/Lower Mainland. Low inventory continues to be a factor in Vancouver Island communities, on Salt Spring and the Gulf Islands, and on the Sunshine Coast. This lack of housing, in spite of governments welcoming immigration, is not easily solved. Some government measures to add to housing stock will have very limited outcomes and could be described as ineffective. It is expected that lack of housing pressures will continue past 2030. Hmmm……

Property Types and Buyer Preferences

It’s interesting that most options below one million, on Salt Spring, are townhomes. These strata listings are not always what a seeker for a Salt Spring lifestyle is looking for. Single family homes are few & far between, below one million. Many potential buyers are looking for:

And so on. It can take three visits before a sale is accomplished. The buyer also has to choose “for” Salt Spring as well as for a specific property.

Market Outlook

So, low inventory continues. More buyers are willing to act with an offer in 2024, and price escalation is projected by the summer season. It may not be bidding war territory, but it remains a sellers market.

More information? Contact me. Your best interests are always my motivation.

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Enjoying Salt Spring Island

May…an important anniversary for ArtSpring. ArtCraft at Mahon Hall is getting ready for the season. Ganges Galleries are presenting new works, and coffee stops that showcase artists are welcoming one. New restaurants are there to try and Hastings House, Auntie Pesto’s, and Rock Salt remain faves.

Beachcombing, sailing races, paddle board and kayak adventures, whale watching…walking/hiking trails beckon…Ruckle Park picnics…restorative spa experiences, amazing Saturday Market…yes, it’s Spring-into-Summer and time to jump in. Enjoy!