Steady, slow and plenty of inventory. That’s the story of Gabriola’s real estate market according to Jennifer Lynch with Coast Realty (Gabriola).
“It is a buyer’s market, there’s no question,” she said.
“We don’t have record inventory, but we have a good selection to choose from.”
Currently there are 125 active listings including lots and acreages. That’s not an all-time high for listings, but sales are down substantially from last year so the time on the market is increasing. 42 sales have been made this year on Gabriola not including private sales.
Sales to Date:
Jan. 1 to Sept. 8
2011 – 42 sales
2010 – 77 sales
2009 – 78 sales
2008 – 80 sales
2007 – 120 sales
2006 – 123 sales
2005 – 141 sales
2004 – 178 sales
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Jennifer explained if sales rates remain the same Gabriola has a four year supply of inventory, assuming nothing new came on the market.
Jennifer said there isn’t a particular price section of the market that is standing out.
What is selling she said is “well-priced, well-positioned homes. Price isn’t everything. The buyers we’re having right now are looking for nice, quality homes.
“The quality of the home is paramount. Fifty per cent plus of our buyers are retirees. A lot of them aren’t looking to build. A lot are looking to buy their retirement home. They don’t want renovations.”
There have been two sales over a million dollars this year, which Jennifer noted is unusual.
She said there is a great listing inventory between $400,000 and $500,000 that is very well-priced, but that isn’t the active segment of the Gabriola market right now. Some of them are priced so well she is surprised they have not sold.
“I’ve got a couple that are like, wow. For a buyer, it is a very exciting opportunity because I don’t think we’ve had has as good a listing of inventory as we have right now.
“Coupled with the mortgages and interest rates, there is no better time to get into the market.”
A shift from a couple years ago is over half of the buyers are coming from inside the Vancouver Island and Gulf Island market, with people taking advantage of the market to move in to larger pieces of property or waterfront property.
Jennifer said Alberta used to drive the market but now makes up only 11 per cent of the market. The recreational market is 7 per cent.
“The recreational market went south, with the dollar being so strong and the severe housing depression in the States. All the recreational market has gone to the States. That’s throughout B.C.”
Revenue properties are declining, but that, according to Jennifer, is not a new trend. Rents do not cover the cost of owning a revenue property.
Ninety-three per cent of buyers are buying for principal residence.
Jennifer said, “This is an awesome time to move up. If you are staying within B.C., other than the metropolitan areas, there are opportunities to move around.“
She said despite this being a great time to get into the market, first-time buyers have not really been taking advantage of it.
“A few years ago, there was almost nothing under $300,000. Now there is a really good selection under $300,000.
“I think first-time buyers are so worried about getting turned down [for a mortgage] they don’t even explore that as an option.”
As for advice for those thinking of selling?
• Get it on the market now. You don’t want to wait. Recognize it will take longer to sell; the sooner it is on the market the better chances of selling.
• Make sure it is in show condition. It has to show well. Any maintenance issues should be dealt with ahead of time.
• Price it properly to begin with. Don’t speculate on what the market may do in the future, but where the market is now.
And what is it stereotype property buyers seem to want?
Three bedrooms, two bathrooms Jennifer said.
She added the “best bang is on resale housing versus land unless someone really wants to build. Resale housing is going for under $100 a square foot.”
