Still sticky in the secondary home marketplaces?

By
Real Estate Broker/Owner with Sea to Sky Premier Properties (Salt Spring)


Space for morning coffee?


Here we are at the beginning of our real season...mid-July to mid-October.

Late Summer/early Fall months have become the main viewing time period in the Gulf Islands/on Vancouver Island. Short & intense, then!

Sales volume in entry level residential properties did improve in first five months of the year...a slowdown began to be experienced in late May. June is always a quiet month, regardless of market trend in play.

What will make that reluctant buyer willing to act in a discretionary region?

Well, a definitive outcome to the inflation vs deflation debate would help. Should one keep cash (deflationary scenario) or buy unique hard assets, to preserve capital (inflationary scenario)? Now there's a black & white decision!

A U.S. Presidential election year often creates hesitation in discretionary locations. No one "has to" buy a second home, or a retirement choice, or a recreational retreat. The buyer chooses the moment of action, always, in such a marketplace. In pivotal election years, people like to know outcomes before making decisions.

The economic meltdowns of late 2008 did cause a lack of tourism in all recreational locations...tourism is often the economic driver in a community. People fall in love with an area, buy a cottage or a lot, rent kayaks, bicycles, scooters, hire contractors, designers, eat out in restaurants, collect local art...so many small businesses benefit from tourism, initially, and real estate sales ultimately benefit, too.

Hmmm...is increasing tourism where the Gulf Islands & Vancouver Island should be focusing their efforts? Everything else will flow from that?

Economic insecurities continue, and that limits tourist activity. Ferry traffic is down & fare prices are increasing, to meet rising fuel costs.

The local Salt Spring Chamber of Commerce is creating events to showcase the Island & to encourage tourism. The Chamber stats show past tourism accounted for approximately 40% of revenues on Island. The CRD opinion is that it may only be 4%. The Capital Regional District, then, may not be willing to spend allocated funds on tourism related options. And what about PR? How to get those living off island to attend events, such as the Sip & Savour weekend in September? Interested in aiding successful business outcomes on Island? Make sure you're a Chamber member, & make sure your voice is heard!

Just like everywhere in the world, things that once easily "worked" no longer seem to & new opportunities aren't always easily seen...a shift moment hallmark, for sure!

Meantime, it's the summer season...beauty everywhere. Important to take five, & to enjoy the allure before you.

And your thoughts are? Always welcome!

liread33@gmail.com

 

 

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Rainmaker
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John Pusa
Sellstate Pacific Realty - Glendale, CA
Your All Time Realtor With Exceptional Service

Li - Thank you for sharing detailed quality information about secondary home marketplace. Excellent blog.

Jul 17, 2012 11:24 AM #1
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Charlie Ragonesi
AllMountainRealty.com - Big Canoe, GA
Homes - Big Canoe, Jasper, North Georgia Pros

I am in a market that has a lot of second home and vacation appeal. Interestingly enough we have more vacationers now than ever before. The reason is the economy and folks fro Atlanta are not traveling as far. It has not translated into more home sale though. I do agree with you that the election here will slow things down in a month or two

Jul 17, 2012 01:03 PM #2
Rainmaker
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Li Read
Sea to Sky Premier Properties (Salt Spring) - Salt Spring Island, BC
Caring expertise...knowledge for you!

Thank you, John...appreciated your reading & commenting on my post!

Jul 18, 2012 09:55 AM #3
Rainmaker
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Li Read
Sea to Sky Premier Properties (Salt Spring) - Salt Spring Island, BC
Caring expertise...knowledge for you!

Appreciated your thoughtful comment, Charlie...and it's interesting that you see an uptick in tourism.  

Jul 18, 2012 09:56 AM #4
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Rainmaker
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Li Read

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Call me for Salt Spring Island real estate!
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