2014 Pender Island Assessments – A quick analysis
It’s a little bit late this year, but I thought it time to analyse the assessed value placed on Pender properties for 2014 and see how this reflects our market and the current trends.
As usual, I have taken a random sample of 5 current listings in each property category to gain an average change and although not entirely scientific it does show some occurring trends
|Category||2014 Residential compared to 2013||2013 Residential compared to 2012|
|Non-View||Minus 6.23%||Minus 8.77%|
|Lakefront||Too little data||Minus 10.79%|
|OceanView||Minus 4.92%||Minus 6.66%|
|Waterfront||Minus 8.8%||Minus 4.91|
|2014 Bare Land compared to 2013||2013 Bare Land compared to 2012|
|Non-View||Minus 4.8%||Minus 9.70%|
|Lakefront||Too little data||Too little data|
|OceanView||Minus 2.78%||Minus 5.42%|
|Waterfront||Minus 11.46%||Minus 5.43%|
Again, like last year, every category is a minus figure over 2013. This means that the correction in our market is still occurring and we have indeed seen a correction in the last two years of approx. 20-30% overall. Looking at the figures above it also shows that all categories, with the exception of waterfront, has had less of a reduction than the year before implying that the correction is working and value reductions are slowing. Waterfront, on the other hand, has been more overpriced since 2008 than any other sector being reflected in assessed values that are almost double the reduction from 2013.
Knowing our Pender market this is generally correct, with those 5 waterfront sales so far in 2014 being sold under $750,000. Waterfront sales have been challenging recently because list prices were out of step with the market, but with another drop in assessed value and lower sale prices it seems this sector is rapidly coming in line with the rest of the market.
In the good news column I can say, with some reservations, that our Pender market appears to be getting better. We have had good sales volume so far in 2014 with 13 sales compared to 6 from the same time in 2013. Our inventory is also decreasing over time which you can see from the charts below showing that month to month the volume of current listing is less from 2012/13/14YTD.
A drop in inventory puts downwards pressure on choice and upward pressure on prices as our market goes from a buyer’s to more balanced. It is often evidence of the start of a recovery but I will wait to see what happened for the rest of 2014 before I declare the down market on Pender to be over. It does, however, look much better than it has for the last 5 years. To maintain this more ‘upward’ trend, pricing real estate is still the key to making a sale. Click on images below to enlarge
Howard Sanders March 2014