Pender Island Real Estate Update for February 2009

(Mt.Baker from the top of Mt. Norman on Pender Island)

The Canadian Home Builders Association Economic Forecast held in Victoria, BC, had 4 Economists speak on the state of our economy and our market.   Not one of them saw the downturn coming 6 months ago, and did not think the US situation would affect us as strongly as it has, but we are their closest traders and they cannot buy our products just now so we are feeling the effects. 

        The good news is that Barack Obama has brought hope to the United States and our Canadian Budget has offered some incentives for buyers.  First Time Buyers may be entitled to a non refundable tax credit of $5000 and there is the First Time Home Buyers’ Tax Credit of up to $750 helping home buyers with closing costs. Buyers can now withdraw a higher amount tax-fee from their RRSP.  There is a Home Renovation Tax credit, as well as a Federal and Provincial Grants up to $10,000 under Canada’s EcoEnergy Retrofit Program.   These may not seem like much, but every little bit helps.

        Banks have had to loosen up a little on the 'requirements' for lending, so with interest rates still falling it is a great time to purchase. Ozzie Jurrock, BC Real Estate Guru, is saying on his website that 2009 is the year of deals. I agree with him strongly.

      Buyers are starting to feel more confident, and Dockside Realty have 5 offers on the table and 2 sales in January - so this is the proof.   The offers are low, but it is a start.  If we realize it has been a seller’s market since 2002, we can accept the fact that there is a pricing correction and this is what is stimulating the market just now.   We remain hopefully optimistic.

     We are also getting many requests for rentals, but we have few houses to offer for rent.  Many of our buyers like the idea of having a tenant already in place.   With the length of time the forecasters have indicated to clear some of the housing from BC’s inventory(10 months) - it may be worth considering.    Our market on Pender is typically 4-6 months to a year, compared to 4 – 6 weeks in most cities.  We have yet to see if the 10 month time frame will be longer here, due to the fact that Gulf Island properties generally take longer to sell.  While these facts may not be positive, we do know that buyers are searching for safer communities where the quality of life and quality of air are becoming more important.    We are that community, and we will continue to be recognized for this. We are getting more computer generated inquiries and phone calls, and this is very encouraging.

So buy now, HOLD, and pat yourself on the bank a few years from now that you took advantage of a great opportunity.