Tag Archives: salt spring

December 2015, Market Analysis

December 2015

Around Salt Spring Island This Holiday Season

This month is a time of celebration, and Salt Spring offers many opportunities to enjoy this season: Wintercraft at Mahon Hall, Village Light-Up with Chili Cook-off and Shop Late & Social, the Beaver Point and Fulford Hall craft fairs, Glowtini contest & Shop Late & Social, Saturday Market opens for Christmas, Sunday Family Shopping Day, and Merry Monday in Fulford Village (thank you, Valdy). Plus, Santa arrives on a carol ship. It’s an authentic taste of a country village Christmas…enjoy!

December Snow - Salt Spring Island

Snow – Salt Spring Island

About Real Estate…

Real Estate sales in that entry level priced category, whether undeveloped land or residential options, have continued to drive our market outcomes. Some upper tier priced residential sales have strengthened, too, between August and now. Thinning inventory, renewed buyer interest in a secondary home/recreational/discretionary marketplace, a safe haven seeking aspect to this interest, a return to hard asset investment opportunities…it all spells a market recovery.

Markets are cyclic in nature…there are also beginnings/middles/ends in transition periods. I think the “end” is occurring right now. We may see a fast return to sellers conditions by Spring, 2016. The traditional market “window” on Salt Spring and the Gulf Islands is March Break to the Canadian Thanksgiving Weekend. It is never without activity, but the bulk of viewings do take place within this timeline. Sales take place at any time.

Sales volume appears to have doubled over last year, and the inventory up to a certain price range has also thinned dramatically. These are two items that underscore a move upward, in a market trend. Plus, undeveloped land sales are finally slowly starting, and that’s the third item one looks for, if seeking corroboration that the recovery is authentic.

In 2014, the sales pricing for a buyer seemed to hit a ceiling at around 550,000. This year, it’s around 750,000…again, a sign of a strong improving trend.

As of November 30th, there were 235 sales this year.

  • The first 14 (between 100,000 and 225,000) were undeveloped lots.
  • 26 residential options sold between 230,000 and 299,500.
  • 42 residential sales fell between 300,000 and 395,000.
  • 41 sold between 400,000 and 495,000.
  • 37 sold between 500,000 and 599,000.
  • 19 sold between 604,000 and 669,500.
  • 16 sold between 700,000 and 799,000.
  • 10 sold between 800,000 and 896,000.
  • 6 sold between 900,000 and 960,000.
  • 19 sold between 1,000,000 and 1,900,000.
  • one sold at 2,450,000.
  • one sold at 3,600,000.

Most of the sales over one million took place from July on.

When inventory starts to thin out, sales volume drops as the number of properties for sale is less…this is already happening in Victoria. This is when we see price stabilization and then increases.

I often think that the first two months of a year reflect the patterns of the last two months of the previous year. November/December have been busy. It appears that this rhythm will continue into January/February. It may take until March to truly see the tenor of the 2016 market.

There is always opportunity for a buyer at any point in time…there are properties available in all price ranges/types. More information on how the changing market trend can benefit you? Call me!

Whether selling or buying, your best interests are my motivation.

Wishing you a Merry Christmas this December and a very Happy New Year! Enjoy your special traditions.

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.

December 2014, Market Analysis

Salt Spring Island

Salt Spring Island

December 2014, Market Analysis

Market Shift? Hmmm….

Is this the market moment where we trend into a real estate uptick in the secondary home marketplaces?

What was that great rock song? Sign, sign, everywhere a sign, sign….

Signals of Change

Hmmm…lots of signs that we are slowly gliding towards sellers conditions in discretionary regions, including on Salt Spring Island & on the Gulf Islands.

The slow recovery for our coastal secondary home/discretionary regions began in late 2013. It started with entry level residential options…3 bed/2 bath homes, close to services/amenities, good rental accommodations. Perhaps most buyers in these early days were investor-buyers, not end-users.

As inventory slowly thinned out, prices began to incrementally stabilize, & this busier entry level sales segment continued to strengthen throughout 2014. End-users are now outweighing investor-buyers.

Initially, on Salt Spring, sales were mainly below $450,000…now, the bulk of such family home/residential sales are below $700,000. This rise in buyer willingness to seek properties in that higher price range is a good sign. It shows that buyers are less in charge of outcomes & that the seller voice is strengthening.

As inventory thins, we begin to see undeveloped land sales & building decisions…perhaps one can still come in on budget, & get what one wants, without having to pay to renovate? I’ve always thought that the start of raw land sales points to an upward renewal of a real estate market.

Since late Summer, we have also seen more sales between 1 & 1.8 million. This is a definite signal of an improving real estate market in a by choice area. The higher end discretionary buyers had ignored secondary home/recreational regions during the economic downturns.

Yes, price reductions were significant at the point of those few upper tier priced residential sales, but even that spread between list & sale is now narrowing…another sign of an authentic improving trend.

In late September/early October, there were two higher end sales: both waterfront properties had seen severe price reductions over a several years timeline, & both sold for substantially lower than those reduced list prices. In mid-November, a small bidding war occurred on another waterfront, also listed for a substantial timeframe & also seeing reductions over time…in the end, it sold close to that final list figure, & with more than one interested party. With just a scant few weeks between these sales, is this latter one the marker of change for the higher priced opportunities? Hmmm….

Over 2 Million?

To date, except for a large lakefront equestrian centre, there have not yet been sales over 2 million. There are a number of irreplaceable estate style properties listed between 2.4 & 8.2…all private, many are large acreages, most with exquisite homes, some waterfront & some stellar oceanviews. Salt Spring & the Gulf Islands are slowly returning to their previous position of global awareness, & we may see those international buyers returning to purchase these luxury style gems.

With ease of access to major centres, & yet wonderfully “apart”, & within the best protected boating waters in the world, these stellar Gulf Islands offer a delectable lifestyle and a protected investment opportunity.

Strengthening Prices & Time Differential

So: strengthening prices, less spread between list & sale, soft “bidding wars” for unique parcels, renewed interest in undeveloped land options & willingness to consider building new, plus beginning sales in the upper tier priced residential offerings…a return to sellers market conditions? Well, it’s certainly a strong transition period right now, & with a definite upward direction.

Does the Secondary Home Market Follow Fine Art Sales Patterns?
I look to the fine art market for further guidance. Recently, at a Christie’s auction, paintings sold for hugely more than expected. My anecdotal “thought”: secondary home real estate follows fine art sales patterns within 6 months. Hmmm…. With that script, we should see sellers market conditions in play in discretionary regions by May/June of 2015.

The recovery after the economic meltdowns of late 2008 has been slow in secondary home marketplaces, including on Salt Spring & the Gulf Islands, & it has not been even-handed.

As we enter December, it’s evident that there is a significant improvement underway in tourism & in real estate sales…which augurs well for the entire business climate on the Gulf Islands. Positive change, with an upward track, does now appear to be firmly underway. We may look back, in coming months, & see that 2014 was that important transition period in the discretionary regions. Stay tuned….

November 2014, Market Analysis

Seasonal Adjustments?

Late Fall is usually the beginning of the “softer season” on Salt Spring & the Gulf Islands & on Vancouver Island. Although our Winter weather is more like a long late Fall or a prolonged early Spring, it is still considered our “off season”. This year, the so-called off season remains busy. Hmmm….

Salt Spring Island

Salt Spring Island

Tourism drives real estate sales in secondary home/recreational markets, & then all other businesses experience good outcomes. The engine of those positive results is a stellar visitor experience, & the downturn in tourism between 2009 & 2012 did affect real estate outcomes in all coastal discretionary regions.

Slowly, since late summer of 2013, a slow resurgence in visitor arrivals began. Most businesses on Salt Spring, in summer/early Fall, this 2014 year, did see their “season” as the best since 2007. This local business outcome is a clear signal of an improving trend for real estate sales in all recreational areas.

Entry Level Residential Patterns

The pattern of entry level residential sales, that began in Fall 2013, has continued throughout 2014. Inventory in this property segment is thinning. Sales volume has increased substantially. List prices are slowly stabilizing, in that entry level category. The viewing price point considered by the buyer for same is also rising…from a search between 300,000 & 500,000 to one that would include properties up to 700,000. All good news for a strengthening market.

There has been a small increase, this year, in residential sales between 1 & 1.8 million. Some of these are step-in ready newer homes on large view acreages. A few are older homes on pleasing waterfront parcels, able to be enjoyed as summer places for now, & ready to develop as permanent homes later.

Although many of these options had been listed between 2 & 6 years, & had come down significantly in list prices before selling, their eventual sales do point to a renewal of interest in the higher end opportunities…a sign of an authentic recovery for a secondary home marketplace. Yes, offers are lower than sellers might have hoped for, but the fact of interest is a market dynamic that predicts change…& on an uptick momentum.

Salt Spring Island

Salt Spring Island

Sign of Recovery: Undeveloped Land Sales

Another sign of a recovery: the slow increase in undeveloped land sales. When a buyer will purchase a lot or acreage, in a “by choice” region, to either “hold” or to develop, it shows a growing confidence in the overall economy…& a recognition of where the best deals might be found. Secondary home markets may have seen a 45% drop in value since 2008’s meltdowns. An investor-buyer recognizes this is a premier moment to act in such markets.

In spite of lateness in the year, the property viewings & subsequent sales continue on Salt Spring, on the Gulf Islands, & on Vancouver Island. Yes, the bulk of such sales are still in that entry level residential category, but prices of same are rising.

Our usual Pacific Northwest Coast “season” (May to October) seems to have shifted this year to an August beginning…& it is still continuing.

2014 may be recognized as the true transition year between a severe & prolonged downmarket and a serious hard asset uptick. If so, then our Spring Market (in play by March Break) in 2015 may show higher prices & less inventory.

Recently, tax assessed values were being relied upon by buyers as market value indicators. This may be another area of upcoming change. Previously, in all secondary home regions, market value was always much higher than government tax assessments. This recent timeline in favour of buyers may be slow-dancing to the seller side of the transaction equation. February 2015 should tell the tale.

Change in The Buyer Profile?

One serious change post-downturn (which may have been in place since 2006, in all secondary home/discretionary regions): the buyer profile. Pre-2008 economic meltdowns, that “boomer” demographic was a strong buyer profile on Salt Spring & the Gulf Islands, & on Vancouver Island. An aging population in this segment may lead to a reliance on “millenials”…& their property decisions may be very different from those earlier boomer desires.

Will secondary home marketplaces be as popular? Hmmm…that might be the big unknown, for all discretionary/recreational communities. Changing tastes mean changing visitor outcomes…which directly affect real estate sales in all “by choice” regions. Hmmm, indeed!

Many positive signs, then, as we ease to the final weeks of 2014. Continuing entry level sales activity, growing interest in undeveloped land, a slow renewal of sales in the million plus range, a recognition of excellent values in secondary home markets…plus a renewed safe haven seeking.

All indicators point to better days for tourism & real estate sales in all coastal discretionary areas. The recovery is not even-handed, but it is underway.

October 2014, Market Analysis

_DSC4340

October really is the segue from mellow Fall to stark Winter.

Early October pretends it’s still September…late October says, no-no…leaves flying, November’s almost here…it’s the Pacific Northwest Coast season of grey. (I think that means our form of Winter).

This thin strip of coastal beauty does offer a northern California “off season” weather pattern…& even more so on the amazing Southern Gulf Islands.

Salt Spring enjoys a “cool Mediterranean” climate, one that encourages orchards, berry production, vineyards, olive groves…& yet…Winter is Winter in any latitude that offers four seasons.

What about real estate sales in this soft “off season”?

What about real estate sales in this soft “off season”? The odd thing is that it can be busier in late-Summer-into-Fall than in the Spring/Summer season.

This change in physical arrivals on island, to view & to make decisions about buying, shifted into a last half of the year sales moment some substantial time ago.

It’s important to be consistently listed year round, if selling, so that a buyer can discover the property & then make plans to visit, & to view. The Internet search eye never sleeps & it’s important to be displayed to it, no matter the time it takes for a buyer response. The buyer profile for Salt Spring & the Gulf Islands is not “local”. Time is a component of the discovery-&-then-action cycle.

Very probable, though, that the arrival time to view will be in late Summer/Fall. Odd, when Spring can be such a beautiful time on this great Pacific Northwest Coast, but it is what it is.

So. The sales pattern to date: a repeat of late 2013. The bulk of sales remain in entry level residential, 3 bed/2 bath family homes, close to Ganges…good rental opportunities. This seems to point to a continuing investor-buyer purchaser, & not necessarily an end-user.

At the same time, undeveloped land sales, commercial/business interests, & upper tier priced residential opportunities remain flat segments. Random one-off sales infrequently take place, in these less active categories, but no clear pattern is yet in evidence. Also, in these random sales, a large reduction still takes place at the point of any offer, even when there have been previous reductions to that point.

Where are the best deals?

It may be, from a buyer perspective, that the best deals will now occur in the higher priced residential options or in the undeveloped land choices, in a secondary home marketplace.

Very slowly, there are whispers of interest in commercial opportunities, & from offshore investors. It may be that the strict zoning controls of the Islands Trust (in place since 1974) have an attraction…unique zonings, that can’t be repeated, have a value.

As inventory clears out, in that entry level residential category, it implies price strengthening. This may be the authentic transition moment between the end of a downturn & the beginning of an uptick. Rumours of mortgage rate increases, from recent historic lows, may also be a signal of an uptick momentum in a market.

The rhythm of the uptick is not a racing forward pattern…yet. It’s still a slow chug-chug momentum, but it’s steadily going forth. This consistency, even though most sales still remain in that entry-level category, is a very positive sign.

Not everything is market related… Other considerations…

It’s important to remember to appreciate the illuminating and naturally beautiful Islands we inhabit. Slightly “apart”, and yet close to major centres…with all services/amenities close at hand…with an interesting & caring community…with the thoughtfulness that an artists community encourages…with a self-sustaining lifestyle to preserve and protect…certainly, Salt Spring Island & the Gulf Islands are alluring locations to enjoy as a visitor or to call “home”, no matter the market trend in play.

Markets are a wave pattern. The downturn may have started in secondary home markets as early as 2006, though not have been totally evident till late 2008. The uptrend may be underway, now. Waves are not static, & markets are always in a flow of shift.

There are beginnings/middles/ends to all market cycles. Recovery also has a beginning, but it’s rarely even-handed. The Pacific Northwest Coast always seems to be the “tail of the dog”…last to see change. The secondary home/discretionary/recreational regions have been slow to recover, all over the Coast. Patience on the part of sellers is still an essential.

Buoyancy in that entry level residential segment, in these “by choice” regions, is a very good sign, & is the traditional start of an authentic market recovery. We may see more sales in the upper tier residential segment between now and early January.