Pender Island Real Estate Blog

Sales and Wales 2009

Howard Sanders — Wed, 28 Oct 2009 20:28:00 GMT

Things were looking a little quiet on the Pender Island real estate scene at the end of September so I made plans to go back to the UK and see how my 98 year old grandmother was doing as well as see the rest of my family in North Wales. The tickets were booked, plans were made, and then I made two quick sales. One was a bare lot and the other a waterfront home, with two other deals collapsing during negotiations in that same period. Thankfully, Dockside Realty is more of a family than most regular brokerages so I could rely on a colleague shepherding these deals through the last few subjects as I whisked off on vacation. Then it was a few nail-biting days abroad hoping these deals would go unconditional, which they eventually did. Having colleagues such as this that you can rely on is priceless in this industry and I'm very thankful that I not only work at Hope Bay, one of the most beautiful places on Pender, but also with some of the most honest and ethical colleagues one could wish for.

Some of you may remember that my wife, Theresa, and I went to Wales a couple of years ago and spent a week on a canal boat. This time I had to go alone as Theresa was busy starting a new job and looking after our new dog. Unfortunately our dalmatian, Pongo, reached his sixteenth year and had to be put down. Our new pound dog is called Koda and he is a Shiba Inu (see picture), He's a very striking animal as you can see, has a good temperament, and is already enjoying his new life on Pender.

Anyway, it was odd travelling on my own again but I found the whole process remarkably smooth, even with the extra airport security, and less than 9 hours after leaving Vancouver we were touching down in Manchester Airport. I flew Thomas Cook Airlines ( I had no idea they had their own fleet of planes) and it was a great deal at less than $860 for a return flight. Thanks itravel2000 dot com!

The most striking thing to me when I go back to the UK is always the manic craziness that occurs on the nation's roads, particularly the motorways. Maybe it's because I'm more used to Pender Island where there are no traffic lights and the maximum speed limit is 50km/h (approx.30 mph), but when someone overtakes me at over 120 miles per hour (giving me the finger at the same time) it's a little nerve wracking. It's a problem that seems to get worse every time I go back there. The drivers seem increasingly suicidal, angry and vicious, many are uninsured, and the police have a hard time keeping this under control. I felt that driving on the M6 to and from Birmingham was like entering a field of combat where those with the heaviest foot on the accelerator, the biggest repertoire of obscene gestures and phrases, and the greatest disregard for their own and other's safety, were in control. It got to the point where I just stayed in the slow lane and didn't engage these idiots, particularly when on one five hour trip I could have been in a road rage situation with at least four drivers (each well dressed and driving a nice car, I hasten to add). Maybe it's the wars the British are fighting, the state of their economy, the upcoming General Election, the price of goods, the unemployment, the awful, mindless TV or the obsession with celebrities that seems to grip the nation (particularly a TV show called "Strictly Come Dancing" which is the usual generic judge and panel based reality show) that is putting the country on edge. It worries me about the future of Britain because it has so much to offer on so many levels that the dumbing down of the media, the constant surveillance of the population, and the awful news that many British kids are completing their education unable to read and write is tragic. On the other hand, it was wonderful to see my family again, and I spent many wonderful hours in Wales enjoying the scenery, history and natural splendour of the area, as well as metal detecting on private land where there are existing Stone Age settlements scattered around. I stayed on the Isle of Anglesey, just off the North Coast of Wales, an island that was the centre for the Druids during the Roman Occupation of Britain. It never ceases to amaze me what you can find in that area; stone age settlements, burial chambers, stone circles, monoliths, it's truly amazing and well worth a visit. For those of you that like climbing or kayaking, my older brother, Oliver Sanders, runs his adventure tourism company, Rock and Sea Adventures, from Anglesey and he is highly recommended - see rockandseadventures.co.uk for more details (he now owes me a pint for that plug). And talking of pints, Britain still has some of the best ale in the world and also some of the best pubs. It's good to know some things never change.

Llanberis, North Wales

After two weeks, however, I was ready to come home. I love my family and miss them terribly but my life here is so much more satisfying. Spending time away from Pender gives one a reminder of what we have here and it was good to step off the plane in Vancouver, get picked up by Theresa, go to the ferry and have a beautiful sailing back home.

Now it's back to the world of real estate. Vancouver and Victoria are presently very hot markets, with multiple offers on properties becoming quite common. Buyers are realising the opportunities available right now and most sellers understand that being reasonable and pricing their properties accordingly will result in a sale. Pender is also ticking along very nicely at present and our window here has many 'Sold' signs.

Theresa and I wish you all a Happy Halloween and hope to see you on Pender Island one day soon.

More Promising News!

Howard Sanders — Fri, 11 Sep 2009 18:34:00 GMT

(Hope Bay - location of Dockside Realty on Pender Island- courtesy Sam Boyte and Dockside Realty)

The Victoria Real Estate Board (VREB) released a News Release this month with the headline " Property Sales in August Follow Usual Summer Trend". In the report it states that the number of property sales in the Greater Victoria region (including the Southern Gulf Islands) slowed during August but sales (the all important figure) were again significantly higher than in 2008. Prices have remained stable with even some increase in single family homes. There was a total of 764 properties sold in August through the Board's MLS system, down from 933 in July 2009 but up 48% compared to the 517 sales in August last year. That's a very encouraging figure, and further evidence I think of a distinct firming of the market.

VREB President, Chris Markham, says it is usual for sales to slow in August "Many people take holidays in August," Chris notes, "so it is not surprising to see sales soften somewhat. We are pleased, however, to note the significant increase in sales last month compared to August of a year ago which gives further evidence of the strengthening of the market."

Significantly, there were 3509 properties for sale at the end of August, down 25% from the 4657 properties available in the same month a year ago. The decline in the number of properties available for sale will continue to place some upward pressure on prices," said Markham. Sales so far in 2009 are 6% higher than during the first eight months of 2008.

All of which is good news for the real estate market and sellers, but not so good for buyers. The above trends reflect a gradual balancing of the real estate market which, as Mr. Markham notes dryly, will put "some upward pressure on prices." In other words, if you are serious in purchasing property and have the financing, I wouldn't wait much longer. I predict this market will continue to balance over the winter, and by next February we will see a hardening of positions from sellers as they sense the change in the market. I was involved in very few multiple offer situations in 2007 and 2008. In the last 2 months I have personally be involved in three multiple offer situations on Pender Island alone.

Those regular readers of my blog will know I have been very confident in predicting this market change, exhorting buyers to buy before the market swings back. I'm glad to say that many of my clients have listened to me and taken the plunge into property ownership, but others have not. As a realtor, I have negotiated some great deals in 2009 for those of my clients with the money and inclination to own property on our beautiful island, but I'm already noticing that sellers are not just taking the first offer anymore. There is also an undercurrent here (easy to spot in small communities) that the market is balancing and seller positions are beginning to harden (it's the old 'if we miss the first bus, there will be another one later' attitude). I even had one of my listing saying that if their home didn't sell by this winter they will re-list the property at a higher price in January. I had to agree with this strategy.

Time will not be on the sides of buyers for much longer, so Get A Great Deal, Buy and Hold while you still can.

It's Official! The BC Real estate Market turns 'stable'.

Howard Sanders — Sat, 29 Aug 2009 19:17:00 GMT

So it seems that the market in BC is starting to stabilise and show signs of life according to the BC Real Estate Association’s third quarter forecast for 2009. According to Cameron Muir, the Association’s chief economist, “robust housing demand is a strong signal that the economy is coming out of the recession, with a recovery in the broader economy expected to develop over the next three quarters”. Muir has based this analysis on multiple listing service numbers forecasting a 15% increase in sales this year (79,400), up from last year (68,923).

Prices are still below last year in Metro Vancouver and Victoria, about 4% from 2008, and on Vancouver Island they are down about 3% over last year. In urban areas the markets have rebounded quite sharply, whereas the more rural, interior markets are seeing a gradual trend to a more balanced market between supply and demand.

This seems to be a trend that is Canada wide according to the Canadian Real Estate Association (CREA) who in a revised forecast predicts that Canadian resale home prices are likely to rise, not fall, and that sales will nearly match those of last year due to strong showings in the second and third quarters. CREA calls the difference between the market at the beginning of the year and now as being “night and day”. Doug Porter, deputy chief economist at BMO capital markets puts it like this: “The recovery in Canadian housing, I think, was beyond the imagination of even the most strident optimist. It is truly remarkable….”

It seems from data over the last six months that buyers are venturing back into the market, with low interest rates and the signs of a fledgling economic recovery helping the process. There is also a change in the US market with the S&P/Case-Shiller home-price index which monitors 20 US Metropolitan areas showing a gain in 18 cities during June, with Detroit and Las Vegas being the only declines.

This is some good news for sellers. With a more stable and balanced market this means inventory is being sold, often listings that have been on the market for considerable time. Once this older inventory is sold, and the general feeling of confidence returns, the opportunities for buyers to get great deals will begin to diminish. There are still bargains to be had out there, and in our market on Pender this is still the case, but the real ‘screaming deals’ are starting to disappear. For potential real estate investors with long term goals time is definitely running out, and as one client noted to me this morning as his offer was accepted on a great priced piece of Pender Waterfront; “nowadays, if you snooze you lose.”

I couldn’t agree more, and my message on this has been consistent. Time is running out to get a Great Deal but if you do, Buy and Hold! You’ll be glad you did.

Source: Times Colonist August 28,2009

Uncertainty and Hesitation - A Formula for future regret

Howard Sanders — Sat, 25 Jul 2009 20:32:00 GMT

With the Bank of Canada now declaring the recession over in Canada, the Stock Market being at its highest point since January, and the Victoria Real Estate Board sales data from May and June 2009 MLS sales to be respectively 7% and 31% higher than the same period last year, what more do buyers need to feel comfortable making the decision to purchase property here? I deal with many buyers, and while the smart ones have taken my advice and purchased real estate while prices are low, many keep dancing on the sidelines waiting for....well, I'm not really sure anymore. This market isn't going to last forever, believe me, and if you are serious about buying but are holding off for a crash in prices then all you have on the horizon will be disappointment. I can hear it now....."Oh, I wish I had bought in 2009. I always wanted a recreational cabin/waterfront/new home, but now prices are too high and I can't afford it!" Of course, the global financial problems are not suddenly over, and there are all sorts of perfectly rational reasons from experts why you should purchase, or should not purchase, but I look at the overall trends and how it affects markets. The last few months have seen a gradual lightening of the dark mood regarding the economy. Jobs are still an issue of course, and are likely to remain so for a while, but the best thing to get an economy moving again is a feeling that ‘things are getting back to normal’. It’s a rather simplistic view, I admit, but we humans are very affected by moods and trends. If we believe the worst is over, it very often it becomes a self fulfilling prophecy, and I believe that is what is happening right now.

As a realtor, I get great satisfaction in finding the perfect home for a buyer. Also, despite popular opinion, a good realtor will be looking out for his clients and won't necessarily sell them the most expensive property in their price range but rather one that is best suited to their needs. This is what we do, and whilst there are always bad apples in any profession, we really aren't the money-grabbing low-lifes that cartoonists and the popular press would have you believe. In other words, the sale is important but I’m not going to surrender my ethics and integrity just to get that signature on a contract. We deal with the local real estate markets on a full-time basis, and can often spot trends before they become obvious. We then pass this on to our clients.

My decisive buyers have already taken the plunge and, as I have said before, will reap the benefits in increased value over time, usage of their property, and the satisfaction that they didn't let a good opportunity go to waste. Indecision at this critical point will only lead to disappointment, particularly when that perfect property you have been looking for the last few weeks suddenly sells from under you, or when there are no properties left that appeal in the inventory. I’ve had a few buyers that really liked a certain property, had the money to purchase it, but who lost out because they wanted " see what the market was going to do”, or who were going to "crunch the numbers". Whilst they are waiting and crunching, another buyer swooped in, made a good offer and secured the deal. Now the indecisive buyer has to start the process of finding a suitable property all over again, with no guarantee that another one will come on the market, and in doing so loses the opportunity to get a great deal in the tail-end of a down market

Of course, buying real estate is, for most of us, the biggest single purchase of our lives. I am not saying that such a decision has to be rushed, but when the planning has been completed and the finances secured, make the plunge for that property that has caught your eye. You won’t regret the decision when you GET A GREAT DEAL, BUY, AND HOLD.

Sources:

Victoria Real Estate Board: http://vreb.org/mls_statistics/current_statistics.html

Globe and Mail: http://www.theglobeandmail.com/report-on-business/recession-over-growth-resumes-bank-of-canada/article1228484/

CNN.com – Money: http://money.cnn.com/2009/07/23/markets/markets_newyork/index.htm

Lot / Land For Sale in Pender Island

Howard Sanders — Sun, 31 May 2009 17:30:00 GMT

Building Lot with Ocean View

• 1 bath, 1 bdrm lot / land - MLS® $219,000 CAD - Private & Park Like!

Pender Island, Southern Gulf Islands - Pristine-private+park like 2 ac.with ocean views near Mortimer Spit on popular S.Pender Is.Ideally set up as weekend retreat or a temp.place to stay while building a permanent residence. Includes a partially enclosed 19.5 ft.travel trailer with shower,toilet+ fully equipt kitchen. The attached sitting area is bright+cheerful with airtight woodstove.Driveway into trailer+up to building site. Drilled well plus unique water catchment system. Backs onto National Park. This is a fantastic opportunity for a recreational property in the Gulf Islands that is good to go as is. No permanant structures are on the property so taxes are low! A must see!

Property information

My Closed Sales So far in 2009 on Pender Island

Howard Sanders — Tue, 26 May 2009 20:14:00 GMT

Pender Island, May 26 2009

I have a break from work today, so I thought I would blog about what is happening here on Pender Island. The weather is beautiful, and smart buyers are coming to take full advantage of the opportunities in this down market. Other than the sales below, I have three more properties pending and two offers in the acceptance stage so will blog them as they progress. My buyers are getting some great deals at the moment, such as 10 acres of land with a house for under $400,000 or an acreage of waterfront with access to the beach for $325,000. Other opportunities are there, or will come on to the market as the summer progresses, so there is still plenty to go around.

Here are the properties that I have closed so far:

February 2009 - My buyers were looking at condos in Victoria until they saw this fantastic 10 acre parcel with home on my website. Within days we had an accepted offer and now they have their own mini-estate. Amazing!

March 2009 - The buyers saw the potential on this elevated and flat building lot in the popular Magic Lake Estates and snapped it up. Another property sold in less than 12 weeks!

April 2009 - This was another great opportunity for long term clients who have been looking for their dream recreational property for over a year. This waterfront acreage has it all! The long side of the lot is oceanside, there is a public trail with steps down to the beach next door, and it looks out to beautiful views of Saturna Island. What a great deal at $325,000!

It is now very noticeable that all the best property is being consistently snapped up on the island over the last couple of months. The older listings have come down in price and sellers are willing to negotiate. Dont wait, the time is now to Get a great Deal, Buy and Hold!

April and May have been great!

Howard Sanders — Mon, 18 May 2009 21:29:00 GMT

Phew, what a month! In the last four weeks I have accepted offers on five properties, all of which are now unconditional, plus a back-up offer on another property, which is why I haven’t been updating my blog as much as I would have liked. It seems as if my buyers are listening to my advice and getting a great deal while the opportunity presents itself. I have been very clear with all of them that real estate investing right now is a long term strategy, but one that can really pay off in the long-term. I’m very happy for them, because I think it’s a very smart move.

I know there are naysayers out there who will dispute this fact, citing a whole list of ‘experts’ whose job it is to spread the culture of fear pervading the airwaves at present, but I can see that the smart money agrees with me and, as usual, they will be the ones to make more even money in the long run. Risk is not a bad thing, it drives profit, and all investments worth their salt carry risk. Some people are made to withstand the ravages of risk, others are not. It’s always easier to convince yourself to be safe than to take that bold step into dangerous waters, but where is the gain? I’m not talking about recklessness, that is something quite different, but considered risk taking can change lives and very often for the better.

So what am I saying here? It’s my job to assess my clients, to determine their risk-worthiness as well as qualifying them financially. I’m not in the business of talking people into behaviours that don’t fit their personalities, abilities and financial health, but I am frank with those who I feel have the ability to weather the storm and come through it better than they were before. Real Estate is a cyclical market and we are in a trough right now, but I believe we are either already at the bottom or very close of this trough and after that the only way is up.

The attached image is of a snapshot of the Pender Market over a nine day period showing four of my new sales this month (in yellow). Look at how active this market is on a small island that has only 3000 residents. Things are happening, and the opportunities are there to Get a great deal, Buy, and Hold!

Single Story For Sale in Pender Island

Howard Sanders — Mon, 18 May 2009 20:44:00 GMT

Great Price!

• 1,418 sq. ft., 3 bath, 3 bdrm single story - MLS® $331,000 CAD - $22,000 Below Assessed!

Pender Island, Southern Gulf Islands - What a Deal!! $22,000 Below Assessed Value. Enjoy rural bliss with this character charmer on 1.44 acres. Approx. 1300 sqft, 3+BR home, delightfully renovated with a new Master BR w/ensuite. New metal roof & water system with 1500 gal. cistern. Hardwood floors-woodstove-country kitchen. Delightful self contained studio plus workshop & outbuilding. Home business potential for market garden with existing farm stand-pond-open meadow plus beautiful pastoral valley views. South facing with ample sunshine. Walk to the Driftwood Centre. Absolutely charming.

Property information

Cozy Bungalow For Sale on Pender Island

Howard Sanders — Wed, 13 May 2009 21:18:00 GMT

Hardwood floors, New Carpet and Windows

• 1,100 sq. ft., 1 bath, 2 bdrm single story - MLS® $312,000 CAD - Opportunity!

Pender Island, Southern Gulf Islands - GREAT OPPORTUNITY! 2BDR 1BATH bungalow located in popular Magic Lake Estates and close to tennis courts and walking trails. With 1100 sq.ft. on one-level, hardwood floors, new carpet, large kitchen, energy saving windows and ocean glimpses from south-facing yard, this one is a keeper. Enjoy life on Pender in this well maintained and cozy home on a quiet road. Could be recreational property, permanent residence, or income producing rental accommodation. Has over 720sq.ft of deck. Cable TV and Hi-speed Internet. Don't miss out! Year built approximate.

Property information

2664 Galleon Way on Pender Island is SOLD!

Howard Sanders — Wed, 22 Apr 2009 03:02:00 GMT

Pender Island, Southern Gulf Islands - This building lot at 2664 Galleon Way sold in only ten weeks. Bare lots are starting to sell as construction costs begin to dip. What a great time to buy this is! Historically low interest rates and a strong buyer's market makes this a perfect storm for inesting in real estate.

Property information

Now's the time to GET A GREAT DEAL, BUY, AND HOLD!

DON'T PANIC! BC Homes sales soar in March

Howard Sanders — Fri, 03 Apr 2009 18:27:00 GMT

Good news today from the various real estate boards in our beautiful province. For the second month in a row it appears as if buyers are ignoring the current "Oh my god, the world is over!" message continually pumped out by the 24 hours news media and actually spending their hard earned cash on well-priced real estate. It's a smart move, and one they will reap the benefit of in years to come.

The Times-Colonist newspaper of Victoria released the following numbers concerning the real estate market in BC for February-March 2009. Home sales are up across the board;

Up 53% in Metro Vancouver

Up 50% in Greater Victoria (including the Gulf Islands)

Up 34% in Northern Vancouver Island

Up 76% in Kamloops

Confidence in the market is Up from the end of last year.

Sales Activity is Up

Listings are levelling off. (If this continues it will reduce the housing inventory which, over time, will begin to pull the market back from being a buyer's market to a more balanced one.)

Lower interest rates and lower than average prices are tempting buyers back into the market. Home sales spiked in B.C. last month, bringing renewed strength to real estate markets during the global economic downturn.

"The market seems to be trending toward more normal levels," Vancouver Island Real Estate Board president Ray Francis said yesterday. "I think as we are seeing more consumers returning to the marketplace, the word is out about how [historically] low interest rates and some lower prices have greatly helped affordability.

For balance I reiterate that these figures are way below those from the same time last year, but our real estate market is not in free-fall. Times are hard I know, but those who GET A GREAT DEAL, BUY, and HOLD will be glad they did in couple of years.

I'm sometimes amazed by the depth of pessimism of some of my colleagues and clients. Speaking with them you would think that our entire civilisation is at risk, that this economic downfall is fundamentally different to those we have experienced in the past, that this is the BIG ONE from which we won't recover. Nonsense. They seem unable to see the OPPORTUNITY through the fog of fear. Of course human beings have an infinite capacity for messing things up, but we also are able to significantly change our behaviour and come up with strategies to fix them. This is what will happen here.

Usually the truth lies in the middle between extremes. It is a natural balance, and I think this is what will happen with the economy. It will hurt, but we'll get over it and move forward. Those that took the gamble will benefit, those that didn't will be disappointed, as is proved over and over again by history.

I don't know about you, but I feel the wind of change right now. In fact, I have for the last few weeks. Housing sales are up. The Stock Market has had the best positive run since 1933 and my stocks are making positive gains again (for the first time in 3 months!). The amount of buyers and sales I have had in the month of March was significantly higher than the previous three months. Interestingly, I have been putting in very low offers recently for property that has been on the market for a while, but none of the sellers are biting. They are prepared to consider offers, but aren't giving away the farm for free.

Some of my clients are also afraid of buying in now and prices falling further later. This is why I say Buy and Hold to offset this risk. But real estate investment is a speculative gamble, and as such there are no guarantees. If there were, the returns would be meagre. It's a lot like Poker, where you gamble your stake on subtle analysis of your environment and score big when you are proved correct. And remember, with real estate you are investing in land, something that people will always need. It's not a different kind of toothbrush or a new fashion, it's land, and they aren't making any more of it.

So don’t panic! GET A GOOD DEAL, BUY and HOLD!

February Sales Numbers hint at a slowing of the Housing Market fall in both B.C. and the U.S.A.

Howard Sanders — Wed, 25 Mar 2009 21:19:00 GMT

For the last decade, British Columbia’s real estate market has been like a high performance car running on pure ethanol. It revved out of control, the engine seized, and now it’s in the shop for repairs. Prices in BC rose to high levels because nobody wanted to miss out on a rising market. Properties ended up with vicious bidding wars, driving prices further and encouraging more buyers with dollar signs in their eyes to jump in. Queues formed for new condo developments in Vancouver, with many buying multiple units to ‘flip’ and skim off the cream. It became a self driving phenomenon. In a word, it was madness. It was unsustainable, as we are now finding out.

Where does that leave us in the Spring of 2009? Global financial panic aside, it seems as if the precipitous freefall of the economy is slowing in some sectors, the housing market being one of them. Of course we have to put this in context, with home sales and prices being a lot lower than the same time last year, but compared to what we have been fed in the media this last six months the sky doesn’t appear to be about to fall on our heads.

In the US, last month’s housing market was a surprise to most economists. According to www.thestar.com – “New home sales rebounded unexpectedly last month, but were still the second-worst on record and remained well below last year's levels, according to data released Wednesday. The Commerce Department said sales rose 4.7 per cent in February to a seasonally adjusted annual rate of 337,000 from an upwardly revised January figure of 322,000. Even after the revision to January's sales results, the month remained the worst on records dating back to 1963.Economists surveyed by Thomson Reuters had expected February sales to fall to a pace of 300,000 units.”

Bad news for sure, and this is not to say that the worst is over, but there seems to be a slight glimmer at the end of the tunnel.

As far as BC is concerned, there appears to be a similar trend. The Globe and Mail (www.globeandmail.com ) reported in its online business section the following on March 20 2009 - “The (BC housing market) had spun into reverse, with scant sales driving down prices, thereby scaring off buyers and depressing sales volumes. Sales and average prices for November, December and January all reinforced that gloomy prognosis. And, at first glance, so do the data from February, with a continued decline in unit sales and average prices. But there are some glimmers of hope in the most recent statistics, with the numbers indicating that the B.C. housing market is pulling out of the dizzying tailspin of the last 10 months. Admittedly, it does take a burst of sustained optimism to find an upside to a 51-per-cent drop in February unit sales between 2008 and 2009, and a 10-per-cent decline in average prices in the same period. But Cameron Muir, chief economist for the British Columbia Real Estate Association, makes a critical point – sales and prices are dropping, but at a slowing rate. He notes that seasonally adjusted sales rose by 17 per cent from January to February, although that increase has at least as much to do with the unmitigated disaster of January than with any recovery last month. The fact that sales are not dropping as fast as they did through much of the winter could prove to be significant, though. Mr. Muir thinks the moderating decline could be the first indication that the market is stabilizing, saying it's possible the decline in sales, at least, could soon be ending.”

But this is the way things usually go. First there is a boom, then a bust, panic, doom and gloom, dire predictions, more panic, and finally a slow realisation that we are not all going to die or end up in the poorhouse. It is this time between this slow realisation and the rebounding of the market where buyers can make good real estate investments that will increase in value as the market recovers. Mood means everything in the financial and investment sector, and it appears that the mood is becoming ever so slightly more optimistic.

When is the best time to buy? I wish I knew, or had a crystal ball to let me know. However, I feel it very unlikely that we will experience a ‘crash’ in our housing market and prices have already fallen 10-15%. I had an awful November, December and January, but a good February and March, so my personal experience as a Realtor® seems to confirm the reports above.

So, once again I repeat my mantra for the present market. “Get a good deal, buy, and HOLD”. (And don’t watch CNN too much, it’s bad for the blood pressure).

Pender Island Real Estate Update for March 2009

Howard Sanders — Wed, 11 Mar 2009 21:02:00 GMT

Greetings from the Dock at Hope Bay on Pender Island,

It has been an amazing March so far, with a snowfall that beautified our island more than usual. Now we have sunshine, and this is a pleasant reminder that Spring is just ahead. With the days being longer, more folks will be able to get over to the island and Poets Cove Resort and Spa on the South Island is already close to being fully booked for Spring Break.

While gathering statistics for this Newsletter, I am happy to announce that the Victoria Real Estate Board’s February ending newsletter announced a “Rebound in February” with a substantial increase over January. There was a total of 403 homes sold (up 63% from the 247 sales in January ) – but still down from February 2008 (619 homes sold then). Chris Markham, VREB President, thinks these numbers are a very positive sign – despite the widespread economic uncertainty. They have also seen several “multiple” offers as buyers compete for “deals” or substantially reduced properties.

(courtesy Dockside Realty Ltd.)

This has been borne out by the increase of enquiries and phone calls to our office, plus much more traffic on www.homesonpender.com . As I have said many times this year, now is an OPPORTUNITY for buyers to get substantial deals which may not come around again for many years. With the development of our property management division, we are also able to offer potential real estate investors the chance to rent their new purchases and gain income to offset their costs. It seems that people are listening to this advice and getting in now before the market rebounds. If you buy now and hold for at least five years, any further decrease in the market will be absorbed once prices start to climb again. Also, if buying now you are less likely not have competing offers to drive up the price (although, as mentioned before, this is starting to happen in Victoria as the mood of the market begins to swing back).

As some of you may know, www.mls.ca has been changed to www.realtor.ca . In this process, many of our buyers have been very frustrated ( as well as several sellers). The system is much slower, and many times Pender Island does not come up in the search. Three of our realtors did a search for the same properties and got 3 different results – so the system is still working its way through the bugs. We have been addressing our concerns to the Canadian Real Estate Association and they are listening. We are seeing improvement, but it is taking time. With the changes to our Victoria Board’s computer system as well, plus the larger Canadian Real Estate system, it is a trying time for realtors having to adapt to these changes when the market is such a difficult one.

We have had 8 offers with 5 completions since January (most of those in the month of Februaury) – so things are starting to gain momentum. As I mentioned before, buyers are definitely looking for bargains and they are out there, particularly with listings that have been on the MLS for some time.

We are happy to announce that we have also opened an office on Saturna Island right at the ferry terminal dock. Marian Dombovary is our new agent there. Marian has an extensive accounting background and has been living on Saturna for about 2 years. We are very excited about this.

We still remain positively optimistic!

Pender Island's Sea Monster

Howard Sanders — Wed, 25 Feb 2009 15:38:00 GMT

Yes, I know the economy and housing market is on everybody's mind but I thought you may be interested in our sea monster.

I often walk in the area concerned and have seen many sea creatures; seals, porpoises, killer whales, otters, and birds too may to mention. But this? Next time I'm going to be looking a bit closer. Why don't you come and check Pender Island out? And if you see our monster, please let me know. A better photo would help too.

This is how the story goes......

Two Canadian duck hunters, who were working on the rocky shore of South Pender Island off Vancouver, British Columbia, flushed unlikely game on the morning of February 4, 1934. Bringing down a duck that flopped, badly wounded, into the water, Cyril H. Andrews and Norman Georgeson hopped into their small boat to retrieve it. As they approached their bird, they saw "a head and two loops or segments" of something quite unfamiliar rising clear of the water.

Mesmerized, the hunters watched the monster- which was only 10 feet away-as it opened its large mouth, gulped down the duck, snapped at several seagulls, and then sank from view. They noted its sawlike teeth, its pointed tongue, its gray-brown colouration, and the horse-like shape of the head.

Andrews leaped ashore and ran for a phone. Rushing to the loch, justice of the Peace G. F. Parkyn of Bedwell Harbour and several others arrived in time to see the creature swimming about 20 yards from the shore, its body undulating rhythmically and its head apparently resting on the water. Andrews estimated it to be about 40 feet in length and 2 to 3 feet in diameter at the thickest part, with a head some 3 feet long, (Roy P. Mackal, Searching for Hidden Animals , pp.19-21)

Pender Island Real Estate Update for February 2009

Howard Sanders — Thu, 05 Feb 2009 21:21:00 GMT

(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.