This week, RE/MAX released their recreational market update expressing (as we mentioned in the blog a few weeks ago) that rec. property markets across Canada will be more balanced this year. The report says that 91% of markets are currently in transition state from strong sellers markets to more balanced markets.
Salt Spring (Island) and two other areas in Canada (located in Sask.), were mentioned as the only exceptions. According to the report, inventory levels in these areas remain relatively low implying a prolonged sellers market. This came as a surprise to me as I have spoken to several Salt Spring agents in the last year and have found that at least anecdotally the rec. market there had slowed down as early as last summer due to the US housing woes and lack of US buyers who had previously been a factor in this mirco-market.
I decided to do a little more research and found a blog from local Salt Spring real estate agent Scott Simmons, listing some recent stats from the market. As I suspected, it seems from his recent stats that the high end market on Salt Spring is wavering a bit from it's height and possibly becoming a more balanced market as is the rest of the province. Scott's blog shows some Salt Spring stats from April which included:
- 2 price reductions:-One from 1.2 to 1 mil, the other from 1.3 to 1 mil
- Sale: Asking 1.5 mil range, sale price 1.3 mil range
- Sale: Asking 2.5 mil range, sale price 1.8 mil range (!)
Scott even implies that this (wide range between asking vs. sale price) "seems to be the trend" on the high end on Salt Spring. So if you're considering buying there don't dispair when you see the news headlines about Salt Spring's rec. market-there may still be a chance for you to get your piece of paradise for less than you think.
