Copyright, Li Read, 2020
I know that the calendar says Summer turns into Fall on September 20, but we all know that Labour Day spells the end of summer-summer.
If you are only making plans for summer fun and ease just right now, then you need to get with the program...we’re at the half-way mark.
The ten week interruption (mid-March to mid-June) of the covid-19 virus closures, plus the Juneuary and early Julyuary cool and wet weather pattern, may be reasons for a late start in one’s mind-set.
Mid-July finally brought real summer to the entire Pacific Northwest Coast, and that includes on Salt Spring and the Southern Gulf Islands. Beauty everywhere!
Real estate sales in all secondary home/rural regions have been brisk, including on Salt Spring, since June 12th. That 10 week shut-down resulted in city residents desiring to make a rural move...a rewriting of a life script appears to be underway.
Most buyers are still from Vancouver...they sell there and then check out all the smaller “apart” regions: Sunshine Coast, Vancouver Island, Gulf Islands, Okanagan/Interior communities. They are looking for a house...undeveloped land and cabin/cottage options are still slower to catch this buyer.
That said, there is starting to be what I term a “land banking” feature. These buyers are seeking solid hard asset investments, and land is one such opportunity. The fear may be that we will see serious inflation, perhaps even a rewrite of currencies, as a result of the massive amounts of government pay-outs during the covid-19 closures. Real estate in regions that are alluring and where it’s difficult to create more inventory capture this kind of attention. (Ask me about the Islands Trust and its cap on growth, since 1974).
Many things are already new since mid-March...the recovery (we are still in “the middle” of the pandemic outcomes) will not look like the pre-virus days. Education, retail, real estate, investing, medical, legal...these are all just some of the areas that are already using the online communication options. (Don’t you wish you had stock in plexiglass, medical masks, and “zoom”?).
At this very beginning of August, then, there are approximately 79 residential listings.
34 of these are listed between 497,000 and 998,000. Another 30 are listed between 1,020,000 and 1,795,000. Two listings are between 3,179,000 and 3,200,000. 0ne listing is at 6,688,800 and one at 12 million.
There are approximately 71 land listings at this beginning of August:
62 of these are between 198,500 and 995,000. Five are listed between 1,020,000 and 1,150,000. One is listed at 1,295,000. Another is listed at 2,150,000 and another at 2,495,000.
There are currently 12 commercial properties listed...some business only and others land & business. Call me on these!
There have been 113 “solds to date”.
Two of these are between 156,000 & 190,000. Six are between 219,000 and 265,000. Six are between 300,000 and 390,000. Twelve are between 401,000 and 499,900. Fourteen sold between 500,000 and 599,000. Twenty-one sold between 600,000 and 694,500. Fifteen sold between 715,000 and 789,000. Six sold between 809,000 and 882,000. Six sold between 933,000 and 998,800.
Twenty-two sold between 1,035,000 and 1,900,000 (the majority of these were below 1,449,000). Three properties sold between 2,195,000 and 2,600,100.
There are viewings and some sales in the residential luxury segment, but most residential transactions are still below mid-800,000 range. Nothing comes on to take the place of these “solds” and so inventory continues to be extremely low. In properties between 500,000 and 600,000, residential offerings don’t last long on market...even when serious renovations might be required.
Land sales traditionally strengthen when residential becomes exceptionally low. Hmmmm.....
As entry level pricings slowly inch up, based on low inventory and high buyer demand, then we truly are in sellers market conditions. Buyers must make their highest and best offers right away. In this kind of low inventory/high demand moment, it’s not possible for a buyer to try to negotiate their way to a final price. In properties listed below 850,000, supply is low and demand is high. Sellers are in control of the process in such a market trend.
Traditionally, many of the higher end priced residential properties catch most sales interest between end of July and into early November. Several years ago, we became a late summer/early fall market. In spite of covid interruptions, the traditional outcomes seem to be underway. The big difference created by covid-19 is that city dwellers are desiring country opportunities. The secondary home markets turn? I think so!
August...a time of fruition, a time to enjoy the Tuesday Farmers Market fresh veggies and berries and orchard offerings. Time to meander the artists works at Artcraft, at ArtSpring, at a covid-style Saturday Market. Time to enjoy decks and patios around the town, for dining out and coffee stops along the way. Enjoy the live music presentations! Sailing, kayaking, swimming in lakes and from ocean beaches, sunset viewing and star watching...summer pleasures are not complicated...they are about ease and the gift of time...taking time...remembering the power of daydreaming and observing the fullness of the natural world. Summer-summer.... Welcome August!
Thinking of discovering your special Gulf Island/Salt Spring Island property? Call me. Your best interests are my motivation.