In 2011 I suspect we will see market activity in and around this same levels as 2010.
The Salt Spring real estate market is basically 4 separate markets 1+million, 600k-900k middle, the low end sub 500k and building lots.
I suspect the high end 1 plus million dollar homes will see the biggest price drops. If a home sat on the market through the peak of 2007 and did not sell, it wont sell in this market. With approx 80 Salt Spring homes for sale in this range I suspect only 10 or so will sell. Most sellers do not seem to realize the completion for the few buyers is so intense at this range.
In the middle market range 600k – 900k I suspect this market will be fairly strong. If a home is perfectly turned out, in a sunny location, with a good ocean view and well priced it will sell. In this price range there are fabulous homes that represent real value.
This video clip shows homes that sold in 2010. The perfect homes listed at a real sharp selling price sold. The homes that are dated and over priced did not sell and probably wont.
The bottom end is going to have a slow year. The new mortgage rules are going to make it very hard for first time buyer to get into the market. Rental rates are not going up and lots of first time buyer are happy renting. Lots of the homes are in rough shape and do not seem to represent much value.
Developers on Salt Spring Island seem to be willing to bargain on new building lots. 5 acre lots have been selling for less than 200k. To me this is were the deals seem to be found. Some lot sellers have drastically reduced the price of their lots. Obviously the main disadvantage is you would have to build.
Click the images to increase the size. This is a basic quick and easy summary of home sales over the last 10 years on Salt Spring.
House to Land ratio is a topic I get asked about all the time. It really depends on were you are in your life cycle and what is important for your situation. This simple flow chart explains the principal of House to land ratio. If you have any questions email me.