Tag Archives: gulf islands

Feb 2016, Market Analysis

Welcoming in an Early Spring

February welcomes very early Spring on the great Pacific Northwest coast. Depending where one finds oneself, there are snowdrops, crocus, early rhododendrons, early flowering ornamental cherry trees, all whispering the promise of real Spring to come.

Salt Spring Island and the Gulf Islands are nestled in the rain shadow of the much larger Vancouver Island, and this positioning in the Salish Sea (the historic name for Georgia Strait) delivers a temperate micro-climate to the Gulf Islands.

Vineyards, olive groves, orchards, cideries, craft breweries, small sustainable farms…the arable opportunities on Salt Spring and the Gulf Islands are a part of their allure. Trees and succulents grow here that are also found in California.

Connect this temperate climate to a form of governance that controls growth & limits development (Islands Trust), & in a region that attracts a strong artistic base (Salt Spring is renowned as an artists community), and you have a very alluring place to visit…and to live. In the heart of some of the best protected boating waters in the world, the scenic beauty and serenity are further reasons to discover yourself here.

Market Trends

February also brings, for market trends, the beginning signature of this still New Year.

Real estate in secondary home/discretionary regions, & globally so, experienced a severe downturn between late 2008 & late 2014. No one has to buy a second home or a recreational choice, in disturbing economic times.

Salt Spring Island

For Salt Spring & the Gulf Islands, in Fall of 2014, a slow recovery began. This rhythm slowly and consistently continued throughout 2015. As inventory thinned out, prices began to stabilize and the spread between list and sale pricings began to narrow.

Let the Season Begin

Now, here we are, poised at the beginning of 2016’s trend-line, for our seasonal marketplace. For our discretionary area, it often takes until April to catch the real tone of the year.

In our authentic global village, no place is immune to global economic and societal pressures and outcomes. Salt Spring and the Gulf Islands are not protected from issues affecting both Canada and the international community.

Huge population shifts in Europe, continuing suppression of oil and commodity prices, a stock market with a richochet pattern, currency stresses world-wide, an argument between deflation and inflation that brings brief stale-mate, a tech based world that has almost erased all vestiges of late 20th Century models…and is now delivering societal outcomes post-tech (think Uber, Airbnb). Still no road-map for easy decisions and an erosion of capital. Hmmm….

Canada On Sale

Canada is on sale. Our dollar has reduced 30% against U.S. currency, for example. It may be tracking to a 40% spread. For a buyer from U.S., U.K., Europe, & China, our real estate is hugely affordable.

In difficult economic times, without a blueprint for action, investors often turn to unique real estate purchases as a way to preserve capital. Will that be the outcome in 2016? Will real estate purchases solidly return to rural and recreational regions? If so, locally we should see the very beginnings of this return to specialty real estate by March/April. Stay tuned.

Meantime, we need to take the image of this Chinese Lunar New Year (starts on February 8th) to heart: the Year of the Monkey. An image of playful activity? Apparently a time of exciting discoveries/inventions…but also a time of turbulence/revolutionary zeal. Hmmm…a time to be nimble, perhaps. Sounds like more change, in any case.

Every good story has a beginning/middle/end…this transition market, between a down & an up market trend, appears to be drawing to a close. It may take until May, in our specific Gulf Islands region, to see the uptrend fully in place. A seller’s market is noted as having lots of buyers & very little inventory. We appear to be on the way to this eventuality.

No matter the market trend in play, at any given moment, there is always opportunity. Whether selling or buying, I look forward to bringing my knowledge, experience, expertise to your benefit.

January 2016, Market Analysis

January 2016, Market Analysis – Salt Spring Island

Salt Spring Island

Salt Spring Island


A New Year…a new adventure.

2016 may turn out to be the authentic first post-meltdown year, for discretionary real estate sales.

Salt Spring Sales – Between 2008 & 2014

In the secondary home markets, between end of 2008 and end of 2014, there was scant activity. Although most sales in 2015 occurred under the label “entry level residential”, such sales volume may have doubled and listing inventory dramatically thinned. This is a marker of an authentic recovery. In the end, all property types/price points find their buyer.

Hard Asset Investing

It’s called hard asset investing, and is perhaps the antidote to years of quantitative easing. When currency uncertainties are a factor, ownership of a good real estate option is a solid route to safe haven investing.

This is an excellent opportunity for many to consider amplifying their property portfolio: to consider a recreational purchase as a means to grow their asset base. Undeveloped land opportunities may be the “best buy” venue.

Interest rates still remain at almost historic lows. Sellers might agree to hold a mortgage in order to facilitate a sale. Prices reduced over the past eight year downturn; recreational options are affordable. Vacation rentals can help to offset costs. And, there is the enjoyment aspect in this “always on” post-Internet world. A ferry to a retreat…hmmm…a recipe for a pleasing lifestyle?

BC Ferries

BC Ferries

A Time For Action

A cottage. A garden. A kayak at a dock. A deck to invite one to ponder a view. A beach to stroll. A mountain trail to hike. A decompression chamber? Plus an appreciation component that makes the enjoyment also a good investment.

Timing is all. January reminds us of the message of the double faced Roman god who left his name on this beginning month: one face looked back to past days, and one viewed forward. A quick glance back shows a market finally in recovery. A glimpse forward sees a moment in time that invites participation.

A new year, a new adventure…will you answer the call? Time for that recreational purchase? Time to turn that daydream into reality? Time for action.

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.

October 2015, Market Analysis

October 2015

October is a beautiful month on Salt Spring and the Gulf Islands. Vancouver Island (which I always think of as the largest of the Gulf Islands) shares this Pacific Northwest Coast autumn beauty.>

Salt Spring Island

Salt Spring Island


The Canadian Thanksgiving celebration takes place in mid-October, and always sets the Harvest theme.

On Salt Spring, the Saturday Market continues until month’s end, and the Tuesday Farmer’s Market showcases the harvest produce. Apple Fest is the first October annual event, and then Sip and Savour (held this year on Thanksgiving Weekend…restaurants are offering special wine pairing dinners plus harvest themed opportunities…local fare always in the forefront… Wine tastings at the 3 local vineyards, cidery & brewery offerings available, plus farmgate stands are open throughout the Island).

The October weather varies from late summer to “real Fall”…the days are shorter…crisp evenings mean stargazing. Plus, evening classes, clubs and hobby groups, choral entertainments, ArtSpring’s theatre, dance, music, speakers program…all things that are not to be missed…and the Arts Council’s amazing SNAAP puts Salt Spring on the artistic map, Canada-wide, this October.

Salt Spring is truly an authentic year-round destination. October is that “season of mists and mellow fruitfulness” that the poet Keats wrote about, centuries ago. Much to enjoy!

Real estate remains active in the Fall season. Often, people look at properties in Spring/Summer and then decide to “act” in the Fall/early Winter. Salt Spring and the Gulf Islands and Vancouver Island communities are, in the main, secondary home/discretionary markets. Decisions to buy are “by choice” decisions.

The post-Internet era has delivered huge choice to buyers in this coastal region. Why here? What about there? Choice creates time lags in the decision process, regardless of market trend in play.

The recovery is seriously underway in our “by choice” coastal areas…thinning inventory, renewed interest in undeveloped land opportunities, a renewed interest in upper-tier priced residential options…these are all pointers to an authentic recovery. It is still not an even-handed recovery, and prices have not yet stabilized. What can be said, at the beginning of October: the direction is “up”.

For a detailed report of sales to date, please contact me.

The late summer through fall market delivers consistent sales. Between early October and end of year, many more sales will take place. These will create a new update report in time for projected early Spring activity. The last three months of the year are often mirrored in the first three months of the following year. October/November/December of 2015, then, presage the early opening days of 2016.

The momentum is upward. The inventory is low in any particular property segment. Prices are beginning to stabilize.

Are we on the way to sellers market conditions? Possibly by Fall, 2016. Markets are always moving, in that alluring wave pattern. We appear to be cresting up.

August 2015, Market Analysis

August 2015, Market Analysis

August on coastal B.C. is an alluring season…& this summer of sun & warmer than usual temperatures is calling forth visitor experiences throughout this beautiful region.

Salt Spring Inn

Salt Spring Inn


I’ve always thought that tourism leads to real estate sales in all secondary home/discretionary areas. During the 7 to 8 year “downturn”, tourist visits were also down.

Most businesses in discretionary regions are once again seeing good economic outcomes this season…many owners feel that things have returned to 2007 levels.

Real estate sales volume has doubled in most secondary home/by choice markets, in that entry level priced residential category.

Price Stabilization

Gulf Islands Hotel

Gulf Islands Hotel

Along with higher sales volume, there is thinning inventory in this same price segment. That usually leads to price stabilization & potential for price increases.

The upper tier priced residential market segment is seeing random sales again. Yes, prices are markedly lower than list, which may have seen several reductions if followed market down, but sales are slowly occurring.

Undeveloped land sales are also beginning to strengthen. Commercial opportunities are slowly catching attention. Both of these property categories are dependent on renewed buyer confidence.

While prices may not yet have stabilized to the point that definite patterns are in evidence, it is clear that the spread between list & sale pricing is rapidly narrowing, & in favour of the seller.

Late 2014 saw the beginning of consistent sales in that entry level residential category &, by late Spring 2015, this segment was seeing the transaction equation swinging to the seller side re sale pricings.

We seem to have become a summer/fall market now, in the Pacific Northwest coastal communities…whether the Gulf Islands, or Vancouver Island, or the Sunshine Coast. It’s important to be “out there“, if a seller, & year round (the buyer profile is mainly non-local in the discretionary areas), so that one is “discovered” & will bring the buyer to eventually choose…physicality, though, does seem to occur more frequently in summer & fall months.

We appear to be at a mid-point in a real estate recovery. Sales volume increases, stabilizing prices, renewed interest from buyers in holding second home/recreational property options…it all points the way to an authentic market recovery in all the secondary home markets.

Our low Canadian Dollar against the Pound & the U.S. Dollar may bring back that traditional buyer to our area. A “safe haven” seeking may be playing a part in showcasing our region as a viable destination choice. Our temperate climate does encourage self-sufficient outcomes.

How lucky we are to call this region “home”.