Market’s Promising Show of Continuing Strength
2013 is promising to show continuing strength in hard asset investment choices, & of course real estate is considered the premier opportunity for same.
In 2012, on Salt Spring Island & in most Vancouver Island secondary home communities, the entry level residential category showed the most favour. 3 bed/2 bath options, in good order, found an investor-buyer…getting out of the banks/stock market & seeking that rental passive-income stream may have been the incentive to sales volume.
Towards the close of 2012, oceanfront residential below 1.9 began to find favour.
Significant Price Reductions at close of 2012
In most cases, there had been significant price reductions over substantial timelines…both realtors & real estate companies and concerned sellers all seeking that elusive bottom.
At the point of an offer, there was usually a further price reduction delivered at that time. The buyer, especially in secondary home/discretionary regions is always in control of outcomes. No one has to buy a second or recreational home…no one has to retire at any particular moment…everything is by choice.
While it remains (for the moment) without activity over 2 million, in the residential category, and still without action in undeveloped land choices, & in cottage/retreat opportunities, and without interest in commercial/business options, it’s clear that 2012 ushered in consistency in that 3 bed/2 bath family residential opportunity, & in both primary residence & in secondary home markets…this will strengthen & grow in 2013.
Sales Volume in 2012
Sales volume in 2012 was up dramatically, then, up to a certain price point, and only in residential. There was no price stability.
By the summer season in 2013, all property segments should see the activity so far only enjoyed by residential offerings. Thinning inventory brings price stability, & in some cases creates price escalation.
The uptick is underway.
It seems that the patterns of the last two months of a year are mirrored in the first two months of the new year…especially so in a secondary home/discretionary region. It takes time in a discretionary marketplace to catch the trends flavour of a year.
In our recreational regions there is a seasonality to physicality/viewings…March Break to Canadian Thanksgiving in October, perhaps?
Search Engines Never Sleep
However, the eye of the search engine never sleeps…essential to be visible at all times. Essential to be discovered. That’s what brings the physicality. There is no time in an Internet search. It is always. If you’re for sale, be visible…it’s no longer about waiting for Spring, & better weather. Somewhere, someone is searching.
1% of a buyer discovery comes off print. In a city 7% off signage. On a Gulf Island? Maybe back to that 1%. The buyer profile is not local in a discretionary area. That means the bulk of buyers in such regions come off an Internet search.
Local print media does not bring them to the island & neither does local signage.
While important to be there, the mls system no longer delivers buyers the way it once did…globally, there is no mls system. It’s a North American item. Buyers from Asia & Europe & U.K. are not seeking information off an mls system.
Franchise “big box” companies no longer deliver referral business as was the case in the pre-Internet era.
Hmmm…everything & nothing are both important in the hunt for the elusive buyer. What do I mean by this? Call me…let’s discuss the profound changes in marketing in today’s consumer driven & post-internet real estate industry. What will work for you? Let’s talk!
In change lies opportunity.
The economic downturn was in play by early 2007. The collapses of late 2008 were just the visible outcomes. Now, the uptick is underway, and as usual the mainstream pack has missed the signals…too much rear view mirror gazing & not enough looking down the highway?
These are just the opening days of this New Year…much to solidify in the coming weeks. By late February/early March, the tone of this calendar year will be clearer, in our secondary home marketplace.
Is the buyers market over? What’s next? Contact me, for some thoughts on this and also on how to create value for you, in a real estate holding.