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Market Analysis

Current Market Conditions

Copyright, Li Read, 2007

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April, 2007.

The good news: we've returned to a more traditional model of arrivals, and subsequent sales pattern, on Salt Spring Island & the Southern Gulf Islands.

In previous years, the main grid of activity was between March Break and the Canadian Thanksgiving Weekend (early October). About four years ago, however, this activity began to shrink to a business that took place in the latter part of the year.

Buyers didn't turn up until around the middle of July. This was a pattern that was true for tourists, also, which affected B & Bs, resorts, marinas, car & scooter rentals, kayak & boat rentals, restaurants, gift/gallery locations, etc.

This year, though, we appear to have returned to that more traditional arrivals time, and it even began a month earlier than might have been expected.

The Victoria Board, which Salt Spring & the Southern Gulf Islands are a part of, stated, at the end of February, that sales volume had increased, in February over January, by about 60%. Interesting!

In 2006, we experienced a significant "pause period", which was a global phenomenon, not just specific to Salt Spring or the Southern Gulf Islands.

This "plateau period" was characterized as "stable/inactive", and there was no serious dipping in price points. Such flat times are characteristic of a middle period in a market cycle.

We might have lifted out of this static time, a little earlier, if it hadn't been for the 16 severe El Nino storms that afflicted the entire Pacific coastal areas, between Nov. 20th and Jan. 18th. Although this has been a winter season that wasn't the "norm", Spring is definitely now with us, and buyers are back.

At the same time, most owners prefer not to be sellers unless they "have to", and so listing inventory remains quite "thin". There are good choices for buyers to view, but not a great many choices.

Prices have remained stable, interest rates remain low, and the allure of a property on Salt Spring Island or a Southern Gulf Island remains strong.

Over time, an investment on the Islands will prove to be an exceptional decision. The Islands Trust has ensured that there will always be a "thin inventory". High buyer demand plus low inventory always engenders higher price points.

Along with the protected investment attributes of a purchase on Salt Spring Island or the Southern Gulf Islands, though, is the appealing fact of the intrinsic beauty of this environmentally protected area, with quick access to major centres (Vancouver, Victoria, and Seattle), and with a wonderful climate ("cool Mediterranean").

For more details on the current market trends, and the opportunities to own a piece of paradise, on a Southern Gulf Island, call Li Read today. (Li rhymes with sea).

A top selling realtor since 1989, Li offers experience, expertise, enthusiasm, integrity, and a sincere desire to work with you, in finding your special Island property!

Whether buying or selling: "See Li for Successful Solutions!"

email: islands@liread.com
toll free pager: 1-800-731-7131
FAX: 250-537-4287

  • March 2007
  • February 2007
  • January 2007
  • Entries for 2006
  • Entries for 2005 & Earlier

    Contact Li Read at RE/MAX Salt Spring, 131 Lower Ganges Road, Salt Spring Island, BC, V8K 2T2, Toll-Free 1-800-731-7131