Sub 500k (low end) Salt Spring Real Estate

The sub $500K (low end) has been selling at a faster pace.  Available rentals have become far and few between over the last year or so.  Potential renters are purchasing property because there are no homes to rent.   Construction workers had been the primary buyers of low end, fixer-upper homes.  With a growing number of new homes being built, lots of construction workers have come back to the island.   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 it’s high cost of living.   This end of the market is very price sensitive and homes in this range have come way down in price over the last 4 or 5 years but now seem to be moving up in price if they are decent.   There were a few deals to be had last year and 87 homes sold in this price range.


Historic count acive listings sub 500k

sale volume low end

low end average



In 2007-08 there were virtually no homes to rent on Salt Spring.  In 2013 there were over 100 rental homes/suites available on the Salt Spring Exchange. At this time winter 2015/16 there is a very limited number of homes for rent.  Rental prices had come down in 2013 and landlords had been very flexible and reducing rents to keep good tenants but those days seem to be over.  For some people, rental looked like a better deal than buying a property.  As prices continue to slide sideways or down, most tenants are happy renting and only a few took advantage of the low prices of 2013.  At that time buying a home looked more expensive than renting.  This has changed there is limited surplus of good quality rental homes and rents have gone up per month.  The rental market is very tight on Salt Spring at this time.  I think we are past the tipping point and buying seems to be a better deal if one can find a home to buy.   What is in most demand are nice clean homes with maybe a rental helper in the basement.

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

 

 

 

Average asking price in 2014 $404,770

Average selling price in 2014 $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 on line 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.  2017 should be very busy in the low end.

Cheers

Scott Simmons

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