Slowly, very slowly, we are "upticking" in price point, and the buyer who traditionally looks at Salt Spring Island & the Southern Gulf Islands is back pondering us as a second and third home choice. The primary residence areas (city marketplaces) of Vancouver and Victoria saw an increase in high end action by end of 2009, but in our discretionary market, where no one "has to" live here, and where a decision to purchase is always based on choice, we had viewings but few sales.
This has slowly begun to change, and the uptick is occurring right when our traditional grid of action takes place -- March Break/Easter and continuing through to early October (Canadian Thanksgiving Weekend). Last year, of course, nothing happened as we were still in that "fear market".
This year, there are cautious steps back into activity, and it's recognized that the relatively low interest rates, the sellers who will "listen" to an offer, and the concern over the validity of cash as an investment vehicle, may not last forever. This is being talked about as an excellent time to buy, and it appears that a lot of potential buyers are listening and are finally agreeing in a secondary home marketplace.
The listing inventory remains very "thin", which means that we may start to see multiple offer situations develop on Salt Spring and the other Southern Gulf Islands, as people begin to think about acting, and owners who don't have to sell still want to retain their island properties...only one listing, and several buyers for same, does mean a return to a seller's market. Maybe not just yet, but perhaps by Fall?
As soon as why prioritizes what one is looking for, as a buyer ("under 600,000, 5 acres, arable land, 3 bed house" idea), then there might only be 4 properties on the entire Island that would meet your criteria.
From only looking at entry level options, in Fall 2009, buyers are now viewing up to 2 million, and are also looking at undeveloped land and at commercial opportunities. Is this a fear of inflation, that is driving a buyer back to a discretionary purchase of any kind? Fine art and antique sales are more buoyant, discretionary real estate sales are being considered, boats are selling....hmmm....keep paying attention.
Post internet, when things change, they change fast!
Your thoughts? Always welcome!
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