Well, the headlines are out, the bears are saying "I told you so" and listing inventory is soaring. In his recent Facts by Email, Ozzie Jurock noted a very fussy buyer's market on the Sunshine Coast with some fabulous waterfront homes now available for under 1 million (for a different picture, click here for details on the waterfront market there last year).

Here in Courtenay, we have started to see price reductions and other areas of the province are experiencing the same thing. In Victoria, for example, according to the blog at www.cheaprealty.net, there is apparently a 20 month supply of properties over 1 million for sale right now and a recent Globe and Mail article suggested that Victoria's real estate is 30-35% over valued.

Negative headlines, over supply, higher interest rates, banks tightening up on lending...all of these factors have combined to mark the beginning of a downturn in B.C. real estate and although prices are already going down slightly, the stats have not yet revealed much of a change. I expect that shortly, the headlines will start to reflect price drops in many areas of BC. I don't expect them to tank rapidly, but rather edge down to a more affordable level slowly. After all, it is just another real estate cycle (albeit we had a longer and crazier upswing than normal) and prices are bound to drop a bit as the cyclical nature of the market returns.

So what does this mean for the B.C. recreational market? I have always maintained that the buyers are still out there. And why wouldn't they be? B.C. still has some of the most pristine and beautiful waterfront in the world, in a politically stable country with a very high standard of living. Moreover, internationally, B.C. waterfront still represents excellent value for many international buyers.

Throughout this slower real estate year our traffic has increased by at least 30% and there are still inquiries going through the site to our sellers and properties selling. Buyers are simply taking longer to make decisions and rightly so, given the market conditions. The days of multiple no subject offers are pretty much over and this, in my humble opinion, is a good thing. In fact, the best time to buy is often in a downturn when nobody is talking about real estate and an over supply of homes are languishing on the market. This is when the true investors and saavy buyers get in on the market. Then, assuming they can hold on until the next upswing, they can potentially make a small fortune when they sell!

So, as I have mentioned recently, if you are a seller, price your home competitively and make sure it shines above the competition. Then advertise, advertise, advertise. Try to make sure you get a plan from your real estate agent prior to listing detailing exactly what they will do to advertise your property. If you're a buyer then take your time because now you can find the property of your dreams without all the pressure.

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I missed last week as I was away on my annual vacation to Salt Spring Island. Of course, we had the worst weather we've had in weeks while we were there but still had a good time. A couple of years ago, the owners of the resort that we stay at decided to strata the resort and sell off the individual cabins and camping spots. At the time, the (very) rustic one bedrooms sold for $60,000-$80,000. Now they have increased in value by 3 or 4 times their original purchase prices. Of course, our entire crew of vacationers (about 6 families) was saying "could have, should have"-something I swore I'd never say when I got into this business.

Anyhow, we recently just found out about another resort on Salt Spring offering full-ownership of their cabins from $329, 000. This resort has access to the only known mineral springs in the Gulf Islands and has an organic health spa on the premises. More information can be found at their real estate web site http://www.saltspringresort.com/.

On another note, I hope you have noticed our new flash image viewer. We finally decided to go ahead with this after much deliberation over slower image load time; however, so far, I think it is a definite improvement as  it adds an aesthetically pleasing look to the site while enabling buyers to view larger photos of the properties without having to scroll down the page. I hope you agree, but as always, any suggestions are welcome.

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For a long time now, I have been planning to donate some of the proceeds from Waterfront West to a charity and I have finally decided to get into action and do it. Last week, we started a campaign to donate $1 for every email inquiry that goes through the site and $30 for every verified sale that happens as a direct result of the site to Canuck Place Children's Hospice.

What is Canuck Place? Canuck Place Children's Hospice helps children and teens with life-threatening illnesses and their families. Canuck Place offers world-class healthcare in a home-like environment as well as music, recreation, school, play therapy, counselling and many other benefits to these children and their families.

Why Canuck Place? Besides the obvious help they give to these children and their families, friends of ours have a daughter with a rare form of muscular distrophy. She has spent time at Canuck Place for the last few years and it has been the highlight of her summer. Her family has also appreciated the care they have given her and the support they have received there, so through them, I feel a personal connection to how Canuck Place is helping families in B.C..

We hope that the fund raising activity helps Canuck Place and if succesful, we plan to continue the fund raiser on a more permanent basis.

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