Sub 500k (low end) Salt Spring Real Estate

The sub $500K (low end) has been selling at a fast pace.  Available rentals have become far and few between over the last year few years.  Potential renters are purchasing properties because there are basically no homes to rent.   Construction workers had been the primary buyers of low end, fixer-upper homes.  With a building boom of new homes happening, lots of construction workers have come back to the island since 2015.   The other big growing segment of buyers in the low end are tec workers moving to the island to raise families and or move out of Vancouver due to its high cost of living.   The biggest problem for this market segment is low inventory levels.

This chart shows the number of sub 500k homes that have sold per year over the last 10 years.  The lower activity in 2017 is partially due to price increases and few homes in this market segment.

 

List of the 54 low end sold home on Salt Spring for 2017;

 


Average asking price $436,509

Average selling price $425,666

Average home size 1504 sq ft

Average lot size 32,694 sq ft

 

List of the 87 low end sold home on Salt Spring for 2016;

 


Average asking price in 2016 $404,770

Average selling price in 2016 $389,830

Average size of home 1,630 sq ft

Average size of lot 52,250 sq ft

 

The cost of buying vs renting seems to be tipping at this time in favor or buying if one can find a decent home that does not need a ton of work.   The influx of construction workers and online tec workers has sucked up any decent rental homes this has put the pressure on the low end of the market.   If a decent home comes along in this price range buy it.  If you hesitate it will probably be going in short order.   There are lots of pre-qualified buyers ready to buy in this segment even with the new B20 mortgage rules in effect.  2018 should be very busy at the low end if more inventory comes onto the market.

Cheers

Scott Simmons