March 25, 2009.
Salt Spring Island, and the other Southern Gulf Islands, like much of Vancouver Island generally, saw a "flat time"/a plateau of inactivity, from about the end of 2005.
This area has become a totally non-local buyer profile, over the past 8 or 9 years, and so we are more affected by events in the home areas of our buyers, than by B.C. economic indicators.
In the Fall of 2007, Victoria began to "calm", and by April 2008, we had Vancouver in a static moment, too. These are primary residence areas, and have a different rhythm than that found in a secondary home/discretionary marketplace.
For the Gulf Islands, then, all of 2006 and 2007 were quiet, and this absence of action continued throughout 2008. The only difference in 2008 was that everyone finally understood the "why" behind the slow time. That subprime meltdown/credit crunch, with the resulting collapses of the housing markets, the stock markets, and the banks/financial markets, was global and no area or type of property was immune.
Yes, price reductions have occurred on Salt Spring & on the Southern Gulf Islands, but this is not always the way to jumpstart action, here, as it is a secondary home marketplace, now.
No one "has to" choose a Gulf Island property, and a second or third home purchase can be put on hold, indefinitely.
In a way, it's always a buyer's market on any Gulf Island, as a purchase is always by choice. No one "has to" come here. Therefore, the buyer is always in charge of both the "where" and the "when" of all purchases, and it's true that it can take between two and four years to sell any property, on any Gulf Island, including on Salt Spring (which is the largest and best serviced of the Islands, and the one with the year round lifestyle). This is the hallmark of any secondary home market, I suppose, even one with a larger population base to draw on. It all takes time.
Locally, a buyer first has to discover us, and then make arrangements to visit. While here, they usually also look at nearby Vancouver Island communities, "just to be sure". It often takes three visits to an Island, before a decision is made to choose that particular island & then to offer on a particular property. Since no one is "local", and they are usually from out of province, if not out of country, the visits have lengthy time lags between them. A year and a half to two years of visits is the "norm"! There is no press to purchase in any particular timeframe, either. It's all discretionary.
In a downmarket, the entire thing can be put on hold, while the buyer ponders options. Doing nothing at all, then, is an option in a secondary home marketplace.
A price reduction often isn't even seen by the buyer, and that kind of knowledge takes place after the physical arrival on Island. Local ad venues are only seen when the buyer is here; they don't "bring them". Not easy, then, to get those connections between a seller and a buyer, in such an area.
Patience is required of the sellers. As long as the realtor is making sure that the information gets out there to where the buyers live, and keeps it in the forefront, in creative and aggressive marketing ways, then the seller is assured that all that can be done is being done. After that, it's really in the hands of the buyer -- when they will visit, when they will view, when they will offer. They are always in control, regardless of market trend in play.
When it's a downmarket, though, of such gigantic and global proportions, that need to have listings be displayed where the buyers are living is as important as ever, and when the shift "up' occurs, as it will, the property will be front and centre, as the realtor will have made certain of this. Important, then, to have a creative and consistent real estate agent working for you, if you're a seller. It's not time to "pull in", but rather to reach out.
There are always sellers and buyers, no matter the market trend.
No doubt, though, that the real estate industry has changed, and continues to evolve, so it's also very essential to be proactive in presentation.
How may I help you to discover and to buy your Island dream? I look forward to your call (liread33@gmail.com).
How may I help you to discover special Salt Spring Island & the Southern Gulf Islands? Call me!
