Real estate markets are cyclical, of course. There are "highs" and "lows", and it is very rare indeed that something sells for intrinsic value.
Since 2006, in all secondary home/discretionary areas (that means globally, so not just a B.C. or Gulf Islands issue), sales action has been very sluggish.
By 2009, sellers were understanding that the buyer, who did not "have to" buy in this recreational/discretionary area, was "on hold". Insecurity makes a buyer pause.
Entry level / first time buyers acted in primary residence/city markets, in 2009, but this did not carry over into the discretionary areas.
Even though some sellers reduced prices very substantially, in our Gulf Islands region, it didn't result in any increase in viewings or in sales.
Our buyer profile isn't local (hasn't been since 2000), and when a buyer folds his arms and says: "I don't know; I'll think about it", they really mean that. This kind of reluctance to act isn't about local pricing, but is about confidence in the overall economic conditions, globally.
Now that everyone is on board, though, in recognizing that things aren't the same since Fall 2008, and also recognizing that the previous buoyancy in sales/pricings may not be seen again for several years, the buyer is definitely in control of the "where" and, more importantly, the "when" of any purchase in our recreational area.
What isn't clear yet is which of the competing scenarios will be the "future": will it be deflation? If so, wise to try to sell, even at very reduced price points, and to hold cash. Bargains will be coming! If it turns out to be inflation, though, then it's far better to own property, and one should be buying more, now, with continuing low interest rates, motivated sellers, substantially reduced prices.
Hmmm...no roadmap...two evenly balanced possible outcomes...where did you say you'd put your crystal ball?
If you lean to the inflationary outcome, then you might want to consider buying an undeveloped lot or acreage. This is one property category that has been extremely inactive, and if you're buying from a developer, who has to sell many parcels, not just one investment, you may end up striking "the deal".
More information? Call me!
How may I help you to buy your special Salt Spring Island or Southern Gulf Island property?
liread33@gmail.com
How may I help you to discover special Salt Spring Island & the Southern Gulf Islands? Call me!
