Welcome to the latest market update for Salt Spring Island's real estate. This report provides a comprehensive overview of the current trends and statistics for both buyers and sellers in our unique property market for August 2024. Whether you're considering buying a home, selling your property or just keeping up with the local market, this update offers valuable insights.
Current Market Overview
Residential Properties
includes single family homes, townhouses, manufactured homes and recreational properties.
New Listings
Total new listings: 26
Average listing price: $1,501,381
Median listing price: $1,470,000
Sales
Total properties sold: 9
Average sale price: $791,133
Median sale price: $612,000
Current Inventory
Total available listings: 125
Percentage change from last month: up 6% from 118 in July
Prices range from $474,900 for a 1/2 interest in a property to $8,650,000 for a gorgeous home on 30 acres.
Land Properties
New Listings
Total new land listings: 5
Average listing price: $458,200
Median listing price: $425,000
Sales
Total land sold: 2
Average sale price: $742,000
Median sale price: $742,000
The two lots that sold had above average listing prices
Current Inventory
Total available land listings: 35
Percentage change from last month: up 3% from 34 in July
Prices range from $115,000 for a recreational lot for an RV to $2,350,000 for 5.98 waterfront acres with two titles.
Market Analysis
We have shifted into a buyer's market on Salt Spring Island. The number of active listings has increased to 160 at the end of August, and total sales for that month were 11. At these rates there is more than 14 months worth of inventory available.
This gives buyers have an opportunity to shop and compare at their leisure with reduced pressure to buy. They are searching for the value leader in their price range.
Some property prices are adjusting downward as a result of where the current market is. There were 23 listings with reductions on the asking price in August and 4 additional properties were relisted at a reduced price.
Sellers can only respond to what the marketplace gives us. We may think we are right, but if the price is too high or the property isn't in demand, buyers won't make offers. A price reduction shows that sellers are serious about getting a deal and not just testing the market—it encourages offers from potential buyers who might otherwise have been hesitant to make one.
But not all is negative ... we are a small market and things can change quickly.
The Bank of Canada announced its third interest rate cut of the year, lowering rates by another 25 basis points to 4.25%. This brings the overnight lending rate down by a total of 75 basis points in just three months. So far, the impact of the first two rate cuts has been minimal on the real estate market. As we enter fall, this third interest rate cut could spark renewed buyer interest by increasing affordability.
There are active buyers looking and prepared to offer when they find a property that appeals to them. The beginning of September saw a increase in showing requests and hopefully we will see some sold properties in the next few weeks.
Advice for Buyers and Sellers
Buyers
Our top recommendation is to use local experienced Salt Spring real estate agents like the Salt Spring Team. June and Scott have lived here for 23 years. We have helped buy or sell homes on most streets and stratas. We know all the areas and know about the local bylaws, building restrictions, zoning, water districts and other valuable information that you will need to make informed buying or selling decisions.
Sellers
The properties that sell are the best deal in their category. How do you it make it more attractive to sell? Either make it easier for buyers or make improvements.
Make it easy for buyers to love your home. Remove the clutter, freshen up the paint, complete small repairs and maintenance.
Provide as much information as you can. Have documents available for review including building permit report, water test, well report, heritage. Depending on the age of the home, septic and pre- home inspection reports can provide an edge and encourage an offer. Buyers buy when they have all the information. When basic information is missing or does not add up buyers go to the next home on their list.
Looking forward
The market has been moving, twisting and changing for more than a year. The heady days of the COVID market and post COVID honeymoon period have ended. We are in a time of adjustment as the market tries to find its footing and a new balance.
