Real Estate Report: Spring Market in Full Bloom

We are fully planted in the spring sales cycle it seems. The sales number of single family homes is up about 20% over the same year-to-date (YTD) period as last year. Interestingly though, the average price is down. This doesn’t mean that the prices have dropped although they are at best buy levels. It seems that that bottom end of the market is being picked off at a rapid rate. This year the average sale price of a Single Family Detached home is about $540,000 as compared to last year at about $640,000 . A lot of this is due to the carpet sweeping of homes under $500,000 plus the fact that we have had only 3 sales over $1Million as compared to 6 last year for this period.

Townhouse buyers seem to have done a shift also. In 2014 ( YTD) we had abut the same number of sales but the average price sold was only $295,000 as compared to almost $412,000 in 2013 (YTD). It isn’t that prices have dropped that much, it’s a different product that sold. This year smaller, lower priced units sold.

Building lots still sit untouched. In 2013 (YTD) only 3 lots had sold and this year only 4 have sold. There are currently around 125 lots for sale. With last years sales of 16 parcels, that is almost an 8 year inventory.

The thing about the lower priced end of the market selling is that it looks positive for the rest of the year. We have already seen the length of time on the market shorten up dramatically for properly priced homes so the “ I’ll have another look in a month” casual approach is not going to work any more. If it’s the right property at a price that fit’s your budget, don’t wait around, it probably won’t be there. The days of deep discounted offers are going away also. The selling price is creeping much closer to the asking price. This is partially due to the increase in market activity but also because of sharper pencils on the pricing of homes.

John Cade
Pemberton Holmes Salt Spring Island
Contact me for a more personalized look at the market.

May 15, 2014 7:58 AM