Lengthy Market update review of 3 year window in Summerland

MARKET UPDATE, the day of the Municipal Election, so let’s have a look back to 3 years ago this day and see the Summerland solds information!
Industrial Commercial Investment is a category within MLS statistics where we see 13 solds in Summerland the last 3 years.  But wait, 2 of those are leases, so let’s remove them.  (Interestingly, the listing agent for both of those is no longe active in the business).  Two of those are “business only” sales that did not involve owning real estate.  That leaves us with 9 solds.  The most recent sale is also the highest price in 3 years, $1,581,500 for the Katana Boats building.  Five of the 9 solds took place in 2009, 2 in 2010 and 2 in 2011, both of which were foreclosed property.
Looking at the active listings, first let’s exclude the 3 for lease, and the two “business only”, to leave us with 15 active for sale, $399,000 up to $2,590,000.  The scary part is to look at those who have tried to sell but did not find a buyer, the EXPIREDS…so 63 times someone made effort to sell in this category and failed the last 3 years.  Combining current active with expired to contrast with solds, that is a very weak market the last 3 years for Commercial, Industrial and Investment here in Summerland.  13 sold vs 78 tried and or trying, over a 3 year term that is about six years of supply.

How about farms category in Summerland the last 3 years.  Well, there are 19 active listings this category, starting at $520,000 for 12 acres up to about $9 million for a 13acre winery.  There have been 21 solds over this 3 year period, from $407,500 for a 10acre non ALR to $2,250,000 for a court ordered sale of 444 acres in Meadow Valley.  Very interesting to note that 12 of the 21 solds took place in 2009!  However, again we see the “phantom” supply of those who tried but failed to sell (and arguably will sell as soon as there is any improvement in market demand).  There were 70 failed efforts at selling!  So, combining that with active, we see 21 sold compared to 89 sellers, creating about a 12 year supply of “farms” in Summerland!

For lots in Summerland, I think it’s gonna be bad!  let’s see:
42 lots sold in Summerland the last 3 years, from $89,000 to a cool $1million as the top price.  That lot was waterfront and took 903 days to sell, initially coming on market for almost 3 million!  The sales were relatively evenly spread over this time frame.  But the current supply side is embarassing to say the least:
81 Active listings, so almost double what has sold in the last 3 years!  But, the new developments are the culprit here for making the statistics look SO BAD for lot sales in Summerland:  One developer has had the same lots sitting for 650 days!  Another developer has had his sitting unsold for 649 days, and a third developer has had lots sitting unsold for 450 days!  Seriously, maybe these developers need to be cautioned about “staledating” their product, no?
And, I just cannot bring myself to look at the number of failed attempts at lot sales…ok, just a quick quick look then a bathroom break:
Compare the 42 lots sold in 3 years with this (and go get another glass of wine, for me!): 174 failed attempts.  Over 4 fails for each sale the last 3 years.  NEXT TOPIC.

For the broad market, we look at “residential” and find 342 active listings, from $39,500 for a mobile home to $149,000 for a condo to $179,000 for the lowest priced detached home, right downtown, to a new construction lakefront house for just under $3million.  Of these, the most stale dated is in Tuscan Terrace for $659,000 sitting unsold for 628 days (so far).
There have been 871 attempts to sell in this category over the last 3 years that failed.  The quickest someone gave up was 7 days, and the longest effort before quitting was 1,032 days on market.
There have been 586 sold the last 3 years, most recent being a home on acreage that just sold for $485,000 after 189 days trying, and initial list price was $599,900, so that’s about a 20% drop in price over that 189 days!
Lowest price sold is for a mobile on leased pad rental for $41,500 and the most expensive was for $2,950,000 for a waterfront house in April of this year.
Good luck to each of the candidates as well as Summerland’s incumbent by acclamation Mayor Perrino.  Congratulations to all those who let their name stand, and to those who get elected…
Patrick Murphy

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