The main sales to date, this year, are still found in the entry-level residential offerings. Undeveloped land, cottage/recreational options, and the commercial/investment segment all remain "flat".
In our secondary home/discretionary marketplace, there is a wider spread of "luxury" residential offerings than might be found in a more traditional home buying area.
Certainly, since the mid-90s, the Gulf Islands/Salt Spring Island region had evolved into an enclave area, one that attracted an affluent retiree, or someone lucky enough to own a second or even third home.
The housing "bubble", between 2002 and 2006, just furthered the impact of this buyer profile...the discovery of the Pacific Northwest Coast, the global influence of the Internet, the low Canadian Dollar against other currencies, the commoditization of housing, the historically low interest rates...it was a "perfect storm" scenario!
So, what about that luxury market, now that we've experienced the economic meltdowns in Fall, 2008 and beyond?
Only two sales over two million in two years (a sale at 2.85 in February 2010, and a sale at 2.5 in February 2011). There are several beautiful homes on amazing land that remain for sale, for substantial timeframes, and many do not receive viewings, much less offers. Their buyer remains "reluctant"....
It's with interest, then, that it's being reported that foreign buyers currently make up to 15 to 20% of all home sales Manhattan...that the Paris real estate market is booming, driven in part by the high prices foreigners are willing to pay...that Hong Kong prices have surpassed previous highs and are now some of the highest in the world (driven by Mainland Chinese buyers)...and London's ratio of international to domestic buyers for prime real estate is the highest of any major city in the world...closer to home, we see those four key Vancouver neighborhoods taking off with foreign investment, particularly from Mainland China.
So...rural/discretionary/secondary home areas remain quiet, but what begins in the prime international cities does filter down...one year later? Two?
Oddly enough, markets do seem to follow seven year cycles. Is this year six of a seven year downturn, in rural areas? Hmm...that would mean it's like 1998....
Well, nothing ever stays up or down, and equilibrium is a transition period description.
Double "hmmm".
One thing we can take from the recent Wall Street Journal report, as outlined above, is that buyers are out there, and in all price ranges, seeking the unique. A client with a home in Ireland, also a casualty of the market meltdowns, shared with me that the Irish market is picking up, due to renewed interest of non-local and international buyers. Triple hmmm?
We can also note that they may not be our traditional buyer. International means exactly that...do we offer what it is they're looking for?
That is the question!
And your thoughts are? Always welcome....
How may I help you to discover special Salt Spring Island & the Southern Gulf Islands? Call me!
