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Pender Island Real Estate Market still sound
The current market is tough, but the local fundamentals are holding steady.
Yes, I know it seems as if the whole of Pender Island is for sale at present, but the historical stats for the current real estate market since the financial meltdown in 2008 show that the fundamentals of our local market have remained remarkably stable. The numbers of sales have held, the average cost of residential property has dipped slightly but over time is firm, and the sale price to original list price has also firmed up since sellers have started to list closer to the recommended price as advised by their realtors. The number of current listing are definitely up but the volume of sales are not, leading to the proliferation of For Sale signs that one sees driving around Pender. In other words it is the individual circumstances of sellers that have changed, causing them to shed asset such as property, not a market collapse where there are no buyers. The buyers are still there but their numbers remain stable and have not increased sufficiently to control what is essentially a flood of new listings.
Fear and panic still rule the financial and most real estate markets at present, except for Vancouver where the luxury market is driven by foreign ownership, mostly either from mainland China or from the Canadian – Chinese population. I heard a stat from CMHC this morning where they had looked at the names of buyers in the million dollar plus Vancouver market and deduced that 74% were of Chinese origin. Not very scientific I know, but I think it is safe to say that without the Chinese the Vancouver market would look very different.
On a personal note, I have noticed a few more enquiries in the last month so buyers are still coming to Pender to look at property. Showings are up, but there is still nervousness in the market that leads buyers to be cautious. The price has to be right for the market, and buyers are becoming much more detail oriented when it comes to things such as permits, and water and waste systems. Sales are taking longer to complete and some have collapsed on minor details that weren’t an issue before.
If you’re a buyer there are some great prices on our island at present, particularly for waterfront. If you’re a seller, listen to the realtor when they give you a list price range in the evaluation and try to stay within it. Make sure your property is well maintained, or priced accordingly if it is not. If you have a septic system for example, keep your maintenance records and pump out receipts for a potential buyer. Small details such as these can make the difference between a sale and a collapsed deal in today’s nervous buyer’s market.
However, things may be looking up for us in the long term. The most recent report from Landcor – a real estate data company states the following — “It’s early days but Landcor Data numbers suggest the ‘outer’ regions (of ‘hot’ urban markets) could be bottoming out. The big question: Does this signal the waning of the drought, the first trembles up from market trough — and the signal for the canny and the quick to move in, buy wisely, prudently and longer-term? In uncertain times, nothing can be said with certainty but it seems, maybe, the rains are finally coming.”
To read the full report Click HERE.
Below are some charts to illustrate my points about the essential robustness of our current local market over the last two years.
The first is Active Residential listings to Sales on Pender Island for the last two year period. The green bars are current listings which you can see have been on a general upward curve since Jan 2010, but sales (blue bars) have remained generally consistent
The next chart shows the eventual sale price to the original list price on Pender for the same period. It shows that the difference between the two has firmed up since April with the sale price being on average about 95% of the original list. This is compared by the wild fluctuations month to month prior to this time as shown on the chart. This is encouraging as it seems that newer list prices are more reflective of the market and are therefore getting sales closer to the original list price.
Finally, we have a chart that shows the average residential property prices, based on sales, on Pender Island. It shows that the average price took a dip in the middle of the year, but has rebounded back to average of approx. $500-$600,000 for the last two years. The dip in the middle of 2011 could be accounted for by the fact that a lot of houses in the $250,000-$350,000 were sold as revenue generating, speculative investments by buyers taking advantages of lower prices.
So there you have it. The sky is not falling on our heads, the local market is relatively stable and interest rates remain low. On the downside, buyers are more nervous than usual and there are a lot of listings out there in what is still a strong buyers market. It’s all about confidence, confidence that an investment now will return a profit later, the principle at the heart of the real estate and financial markets. I have faith that this current cycle, while bad, is still a cycle and like all the others in past it will eventually change for the better. The skill is to recognise that change before everyone else and capiltalise on it.
Pender Island Fall Fair 2011
The award-winning Pender Island Fall Fair took place this August 27, 2011 at the Pender Islands Recreation and Agricultural Hall. It was a beautiful day and the attendance was high, possibly the highest ever. With the parade from the Firehall to the Community Hall starting the whole thing off as usual, the Farmer’s Market, a wide variety of exhibitors plus food and entertainment, it was a hugely successful day and a tribute to all the hardworking islanders who make it happen every year. Below are pictures of some very happy people….
and finally, my wife, Theresa Carle-Sanders of islandvittles.com was there cooking up a batch of her now famous homemade falafel flatbread wraps. New this year, falafel flatbread Wraps with BACON (they sold out in less than 45 minutes)!
Here’s a video of the Fall Fair Parade…………..
New Video — 1356 Mackinnon Road, Pender Island
OFFERED AT $625,000
Spectacular SW ocean view acreage property located within easy walking distance of ferry terminal. Sun Raven is an inviting rustic approx. 3000 sq. ft. 5BR, 2BA west coast character home situated high on the hill top. Features 4 skylights, ship plank oak floors, sauna, sun decks, games room, office with sleeping loft, vaulted ceilings, 16′x32′ heated swimming pool, woodstove & fireplace, open plan kitchen/dining/living room, greenhouse, double C/P. Private and serene forest acreage is part of the whole 4+ acre package. Zoning allows for cottage in addition to present home. Near Otter Bay marina & Pender Golf Club.
New Video — 1358 Mackinnon Rd., Pender Island, BC
OFFERED AT $249,000
Southern exposure with beautiful ocean views to Vancouver Island & The Olympic Peninsula. This 1.13acre building lot has a drilled well and is in a desirable location steps from the Otter Bay Ferry Terminal, so save on ferry costs and leave your car at home! Hydro, cable/internet at lot line. Also within walking distance to Otter Bay Marina & General store. Paved driveway leads into the property right to building site. If you are looking for a good sized lot that would be easy to build on with ocean views, a great location and a good price this is one! Septic system required.
I Just Listed — 1356 Mackinnon Road
OFFERED AT 625,000
Spectacular SW ocean view acreage property located within easy walking distance of ferry terminal. Sun Raven Lodge is an inviting rustic approx. 3000 sq. ft. 4BR, 2BA west coast character home situated high on the hill top. Features 4 skylights, ship plank oak floors, sauna, sun decks, games room, office with sleeping loft, vaulted ceilings, 16′x32′ heated swimming pool, woodstove & fireplace, open plan kitchen/dining/living room, greenhouse, double C/P. Private and serene forest acreage is part of the whole 4+ acre package. Zoning allows for cottage in addition to present home. Near Otter Bay marina & Pender Golf Club.
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