Real eState
Canada’s recreational real estate rush comes to a close: Prices expected to soften amid waning activity
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National aggregate house price forecast to dip 4.5% in national recreational market in 2023 as sidelined buyers wait for more inventory, economic stability
Highlights:
- The aggregate price of a single-family home in Canada’s recreational property market increased 11.7% year-over-year to $619,900 in 2022
- Nationally, the aggregate price of a single-family waterfront and condominium property increased 9.5% and 16.6% year-over-year, respectively, in 2022
- Condominiums in Quebec’s recreational property market recorded the highest provincial year-over-year aggregate price appreciation in 2022, rising 22.3%
- Alberta is the only provincial recreational market expected to see price appreciation in 2023 (+0.5%)
- Quebec and Ontario expected to see the largest recreational property price decreases in 2023, with forecasted declines of 8% and 5%, respectively, compared to 2022
- More than half (57%) of recreational property experts across the country reported lower inventory than last year in their respective regions, and 65% reported reduced inventory compared to typical pre-pandemic levels
TORONTO, March 28, 2023 /CNW/ – According to Royal LePage, the aggregate price of a single-family home in Canada’s recreational regions is forecast to decrease 4.5 per cent in 2023 to $592,005, compared to 2022, as activity in the market wanes. This is due to reduced demand as a result of economic uncertainty and a lack of available housing stock, which has helped to keep prices stable. Despite a modest decrease expected this year, the national aggregate price would remain more than 32 per cent above 2020 levels, after two years of double-digit price gains in the country’s recreational real estate market.
With the exception of Alberta, which is expected to see a 0.5 per cent increase, all of Canada’s provincial recreational markets are forecast to see a decrease in single-family home prices in 2023. The province of Quebec is forecasting the greatest price depreciation, at -8.0 per cent.
In 2022, the aggregate price of a single-family home in Canada’s recreational property regions increased 11.7 per cent year-over-year to $619,900. This follows year-over-year price gains of 26.6 per cent in 2021. When broken out by housing type, the aggregate price of a single-family waterfront property increased 9.5 per cent year-over-year to $736,900 in 2022, and the aggregate price of a condominium rose 16.6 per cent to $432,000 during the same period.
“After two years of relentless year-round competition, Canada’s recreational property markets have slowed and returned to traditional seasonal sales patterns,” said Phil Soper, president and CEO, Royal LePage. “While interest rate hikes have less of an impact on the recreational market than homes in urban settings, because families typically put more money down and borrow less, general consumer inflation combined with a severe lack of inventory has dampened sales activity. Buyers who are active in today’s market appear willing to wait for the right property – a sharp contrast to what we experienced during the pandemic.”
While low inventory poses a challenge for buyers looking for that special cabin or lakeside cottage, the coinciding contraction in demand has resulted in a return to more normal market conditions.
Return to balance: Supply and demand decline in recreational regions
According to a survey of more than 200 Royal LePage recreational real estate professionals across the country,1 57 per cent of respondents reported less inventory this year, compared to last year. At the same time, 51 per cent of respondents said they have witnessed less demand for recreational properties in their region, compared to this time last year. When compared to typical pre-pandemic levels, 65 per cent of recreational property experts nationally reported less inventory, while a majority reported similar (38%) or more (38%) demand.
“Recreational homebuyers tend to purchase for leisure and life-enriching purposes. Call it a want versus a need,” added Soper. “Unlike many city buyers who may need to acquire a principal residence quickly, secondary home purchasers often have the benefit of time to find the right property for their specific needs.”
Nationally, 28 per cent of recreational property experts surveyed said that the trend of homeowners moving back to urban or suburban communities after relocating to their region full-time during the pandemic is somewhat common; 56 per cent of experts reported this trend was not common in their market. Atlantic Canada, a pandemic relocation hotspot, recorded the highest percentage of experts who said the return to urban or suburban areas is somewhat common in their region, at 46 per cent.
“During the pandemic, with offices closed and people working from home, Canadians discovered that a recreational property could double as a principal residence, complete with capital gains exempt status,” added Soper. “With high-speed internet now readily available in many rural markets, families flocked to recreational regions to put extra space between themselves and their neighbours and to take advantage of nature; particularly when cultural and sporting venues, shops and restaurants in cities were closed. Many urban businesses now require employees to be in the office at least a few days a week, making long commutes challenging. For many, living in cottage country full-time has lost its romantic shine, meaning we are back to viewing the cottage, cabin and chalet as a weekend and summer escape from urban living.”
| 1 A national online survey of 202 brokers and sales representatives serving buyers and sellers in Canada’s recreational property regions. The survey was conducted between March 1, 2023 and March 18, 2023. |
Royal LePage 2023 Spring Recreational Property Price Forecast and 2022 Price Data Chart (national and regional): rlp.ca/table_2023springrecreationalpropertyreport
Atlantic Canada
In 2022, the aggregate price of a single-family home in the East Coast’s recreational property market increased 17.2 per cent year-over-year to $279,900, compared to 2021. During the same period, the aggregate price of a single-family waterfront property increased 9.1 per cent to $388,500, while the aggregate price of a condominium increased 18.6 per cent to $345,000.
According to a Royal LePage survey of recreational property experts, 62 per cent of respondents in Atlantic Canada reported less inventory this year compared to last year, and 69 per cent reported less inventory compared to typical pre-pandemic levels. Demand for recreational properties in the region has also decreased significantly. Forty-six per cent reported less demand this year than last year.
“Parties on both sides of the transaction are waiting for a better deal – recreational buyers are sitting on the sidelines waiting for more inventory to become available, while sellers are holding out for higher offers and competitive bids. But, the multiple-offer scenarios and homes selling over-asking are not as common today as they were during the pandemic boom,” said Corey Huskilson, sales representative, Royal LePage Atlantic in South Shore, Nova Scotia. “As we enter the spring market, I expect activity to pick up but prices to stay stable, as supply and demand remain relatively balanced.”
During the pandemic, Canadians from all across the country who were forced to work remotely flocked to Atlantic Canada for the opportunity to enjoy the Maritime lifestyle and own a home at a much more affordable price point than in major cities. According to the survey, 46 per cent of recreational property experts in Atlantic Canada said that the trend of homeowners moving back to urban or suburban communities after relocating to their region full-time during the pandemic was somewhat common; an additional 8 per cent said it was very common. Meanwhile, an equal number of respondents (46%) said that this trend was not common in their area.
“The majority of recreational property buyers in Avalon Peninsula are either looking for a retirement property, or are locals moving back from other parts of the country who want a secondary property to enjoy in their downtime,” said Tim Crosbie, broker and owner, Royal LePage Property Consultants in St. John’s, Newfoundland. “Home prices have risen here over the past year, as have interest rates, which has given some buyers reason to halt their purchase plans. While most secondary homebuyers looking in the region are motivated to find a property that fits their specific needs, they are prepared to wait for the right home to fall within their financial reach.”
Crosbie noted that the reduced buyer demand is a result of higher interest rates, and that a reduction in borrowing costs would likely encourage more purchasers back into the buying pool.
The aggregate price of a single-family home in Atlantic Canada’s recreational regions is forecast to decrease a modest 3.0 per cent in 2023 to $271,503.
Royal LePage 2023 Spring Recreational Property Price Forecast and 2022 Price Data Chart (national and regional): rlp.ca/table_2023springrecreationalpropertyreport
Quebec
In 2022, the aggregate price of a single-family home in Quebec’s recreational property market increased 16.1 per cent year-over-year to $373,400, compared to 2021. During the same period, the aggregate price of a single-family waterfront property increased 17.3 per cent to $480,200, and the aggregate price of a condominium increased 22.3 per cent to $341,900.
According to a Royal LePage survey of recreational property experts, 53 per cent of respondents in the province of Quebec reported less inventory this year compared to last year, and 79 per cent reported less inventory compared to typical pre-pandemic levels. Demand for recreational properties in the region has also decreased significantly. Seventy-six per cent reported less demand this year compared to last year, and 35 per cent reported less demand than a typical pre-pandemic year.
“We are in a two-speed market with sharply contrasting scenarios,” said Éric Léger, chartered real estate broker, Royal LePage Humania. “On one hand, the inventory of properties for sale is steadily increasing and so is the number of motivated sellers willing to lower their asking price. But on the other hand, we’re seeing multiple-offer scenarios with properties that are ideally located, well-maintained and listed at a fair price,” he continued. “It can be challenging for consumers to stay on top of the market trends because we’re still in a transition. Over the next few months, owners of secondary homes in the region may need to rethink their priorities as their mortgages come up for renewal at substantially higher interest rates.”
Léger noted that the spring market in the area may be less buoyant this year because of current economic uncertainty. However, demand in the lower price ranges will remain strong.
According to the survey, 26 per cent of recreational property experts in Quebec said that they have witnessed a slight increase in buyers who intend to use their recreational property for rental purposes in their region compared to last year, while 18 per cent of respondents reported a significant increase in this trend.
“The real estate market in the Eastern Townships today is vastly different from what we saw during the past three years,” said Véronique Boucher, residential real estate broker, Royal LePage Au Sommet. “Buyers are more patient; they’re negotiating and they’re taking time to carefully assess their needs and their financial capacity before taking the plunge. Conditional offers to purchase, which were practically unheard of during the pandemic real estate boom, made a big comeback in the latter half of 2022, a sign of a much more balanced and fair market.
The aggregate price of a single-family home in Quebec’s recreational regions is forecast to decrease 8.0 per cent in 2023 to $343,528.
Royal LePage 2023 Spring Recreational Property Price Forecast and 2022 Price Data Chart (national and regional): rlp.ca/table_2023springrecreationalpropertyreport
Ontario
In 2022, the aggregate price of a single-family home in Ontario’s recreational property market increased 7.3 per cent year-over-year to $634,800, compared to 2021. During the same period, the aggregate price of a single-family waterfront property increased 8.9 per cent to $1,006,600, while the aggregate price of a condominium increased 15.1 per cent to $510,900.
According to a Royal LePage survey of recreational property experts, 61 per cent of respondents in Ontario reported less inventory this year compared to last year, and 59 per cent reported less inventory compared to typical pre-pandemic levels. Demand for recreational properties in the region has also decreased significantly. Fifty-two per cent reported less demand this year compared to last year, however 39 per cent said demand was higher than a typical pre-pandemic year.
“After two years of historically high pandemic-driven sales, activity in the recreational market came to a comparative standstill in the last half of 2022. Rising interest rates, buyer fatigue, and lack of inventory all played a role,” said John O’Rourke, broker, Royal LePage Lakes of Muskoka. “Early signs this spring point to a more balanced market where inventory levels and sales are trending in line with historical norms. Traditional cottage buyers – end users that plan on enjoying their property – are still engaged and seem eager to jump back into a market in which they are not competing with the investment-focused buyer; a prominent player during the pandemic boom.”
According to the survey, 35 per cent of recreational property experts in Ontario said that the trend of homeowners moving back to urban or suburban communities after relocating to their region full-time during the pandemic was somewhat common. Forty-nine per cent of respondents said this trend was not common in their area.
“Buying a recreational property is like a marathon, not a sprint. Secondary homebuyers in Rideau Lakes have the luxury of time and are looking for a very specific lifestyle property. A shortage of recreational homes makes this process even more difficult,” said Pauline Aunger, broker of record, Royal LePage Advantage Real Estate. “Due to the high demand for renovation services, recreational buyers today are looking for a move-in ready property that requires less work. This includes high-speed internet and good cell service for those who want peace of mind or the option to work remotely. As we head into the spring months, we are expecting market activity to pick up, although not at the levels experienced over the last two years.”
While home prices in a select few recreational markets in Ontario, including the ever-popular Southern Georgian Bay area, may increase marginally over the next year, a decline in activity overall is expected to dampen price growth.
The aggregate price of a single-family home in Ontario’s recreational regions is forecast to decrease 5.0 per cent in 2023 to $603,060.
Royal LePage 2023 Spring Recreational Property Price Forecast and 2022 Price Data Chart (national and regional): rlp.ca/table_2023springrecreationalpropertyreport
Prairies
In 2022, the aggregate price of a single-family home in the Prairie provinces’ recreational property market increased 6.0 per cent year-over-year to $271,300, compared to 2021. During the same period, the aggregate price of a single-family waterfront property increased 5.6 per cent to $507,000.
According to a Royal LePage survey of recreational property experts, 56 per cent of respondents in the Prairies reported less inventory this year compared to last year, and more than three quarters (78%) of respondents said that demand levels are comparable to last year.
“Business is faring as usual in our recreational markets. Demand and inventory are proportional to one another, creating balanced market conditions. Reduced supply has kept recreational property prices buoyant,” said Lou Doderai, broker and owner, Royal LePage Icon Realty, in Prince Albert, Saskatchewan. “The North Central recreation areas are only a couple hours drive from two of the province’s major urban areas, meaning many of our buyers are locals looking for secondary residences that provide an escape for the weekend. Although higher interest rates have halted some purchasers’ decisions to buy a property – at least temporarily – I expect we’ll see a modest pick up in market activity once the warmer weather arrives.”
According to the survey, 44 per cent of recreational property experts in the Prairies said that they have witnessed a significant increase in buyers who intend to use their recreational properties for rental purposes in their region, compared to last year. An additional 33 per cent of respondents reported a slight increase in this trend.
“The recreational market in Lac du Bonnet is the healthiest it’s been in 15 years. The pandemic caused more Manitoba buyers to purchase recreational properties in-province as opposed to south of the border; a level of demand that has caused the average days on market to shrink considerably,” said Rolf Hitzer, broker and owner, Royal LePage Top Producers Real Estate, in Winnipeg, Manitoba. “More than ever, buyers crave a getaway to the countryside, a desire that was intensified by the pandemic and increased demand for all-season properties. As market conditions continue to normalize, I expect to see an active, but not overheated, spring and summer recreational buying season.”
The aggregate price of a single-family home in the Prairies’ recreational regions is forecast to decrease a modest 3.0 per cent in 2023 to $263,161, as sidelined buyers remain cautious amid evolving economic conditions.
Royal LePage 2023 Spring Recreational Property Price Forecast and 2022 Price Data Chart (national and regional): rlp.ca/table_2023springrecreationalpropertyreport
Alberta
In 2022, the aggregate price of a single-family home in Alberta’s recreational property market increased 13.3 per cent year-over-year to $1,165,500, compared to 2021. During the same period, the aggregate price of a single-family waterfront property decreased 5.0 per cent to $641,900, while the aggregate price of a condominium increased 17.7 per cent to $646,000. As a large and popular recreational destination, Canmore’s real estate market has a significant impact on prices in Alberta, with its proximity to Banff National Park and luxury properties.
According to a Royal LePage survey of recreational property experts, 59 per cent of respondents in Alberta reported less inventory this year compared to last year, and 71 per cent reported less inventory compared to typical pre-pandemic levels. Meanwhile, demand for recreational properties in the region has remained stable. Thirty-five per cent of respondents reported similar demand this year compared to last year, and an additional 35 per cent reported more demand.
“Buyer demand for recreational properties in Canmore continues to be driven by retirees and Albertans living in the surrounding cities, as well as residents from Ontario and Quebec. As Canmore attracts many cash buyers, higher interest rates have had little impact on this market, a factor that has kept prices stable,” said Brad Hawker, associate broker, Royal LePage Solutions. “Low supply continues to be a challenge, an issue that has been underscored by the lack of new construction projects. This has caused many buyer hopefuls to sit on the sidelines, waiting for their ideal property to become available.”
According to the survey, 65 per cent of recreational property experts in Alberta said that the trend of homeowners moving back to urban or suburban communities after relocating to their region full-time during the pandemic was not common, another factor contributing to the supply shortage.
“We are experiencing a lack of turnover in the Wabamun Lake and Lac Ste. Anne markets. Coveted recreational homes, especially those on the water, are more likely to be passed down through the generations, a trend that is exacerbating the region’s low level of supply,” said Tom Shearer, broker, Royal LePage Noralta Real Estate. “Those shopping for a recreational home are often locals from nearby cities who already have a personal connection to the area and are looking for a retreat to enjoy with family on the weekends and in the summer months. Unlike a primary residence, most buyers shopping for a vacation home can afford to wait for the perfect property to present itself.”
The aggregate price of a single-family home in Alberta’s recreational regions is forecast to increase modestly by 0.5 per cent in 2023 to $1,171,328. This is the only region in Canada forecasting price growth over the next year.
Royal LePage 2023 Spring Recreational Property Price Forecast and 2022 Price Data Chart (national and regional): rlp.ca/table_2023springrecreationalpropertyreport
British Columbia
In 2022, the aggregate price of a single-family home in British Columbia’s recreational property market increased 12.9 per cent year-over-year to $1,071,300, compared to 2021. During the same period, the aggregate price of a single-family waterfront property increased 5.6 per cent to $1,065,000, while the aggregate price of a condominium increased 14.3 per cent to $441,400.
According to a Royal LePage survey of recreational property experts, 49 per cent of respondents in British Columbia reported less inventory this year compared to last year, and 71 per cent reported less inventory compared to typical pre-pandemic levels. Demand for recreational properties in the region has also decreased significantly. Forty-nine per cent reported less demand this year compared to last year.
“Like many recreational markets across the country, Pemberton and Whistler continue to experience low inventory. Come springtime, I anticipate that supply levels will rise as more sellers move into the market, but I don’t expect there to be a huge wave of relief,” said Frank Ingham, associate broker, Royal LePage Sussex. “Many buyers continue to wait on the sidelines for prices to fall or for borrowing costs to become more affordable, especially those purchasers who are buying for their retirement or for their adult children to enjoy. This trend is creating more pent-up demand on the sidelines, and is causing properties to stay on the market twice as long as last year. However, as the spring market gains momentum, I expect more homes that have been sitting on the shelves will start to move into the hands of buyers.”
According to the survey, 54 per cent of recreational property experts in British Columbia said that the trend of homeowners moving back to urban or suburban communities after relocating to their region full-time during the pandemic was not common, a factor contributing to the supply shortage.
The aggregate price of a single-family home in British Columbia’s recreational regions is forecast to decrease a modest 2.0 per cent in 2023 to $1,049,874, as moderate activity is expected while buyers wait for more product to come onto the market.
Royal LePage 2023 Spring Recreational Property Price Forecast and 2022 Price Data Chart (national and regional): rlp.ca/table_2023springrecreationalpropertyreport
About the Royal LePage Recreational Property Report
The Royal LePage Recreational Property Report compiles insights, data and forecasts from 50 markets. Median price data was compiled and analyzed by Royal LePage for the period between January 1, 2022 and December 31, 2022, and January 1, 2021 and December 31, 2021. Data was sourced through local brokerages and boards in each of the surveyed regions. Royal LePage’s aggregate home price is based on a weighted model using median prices. Data availability is based on a transactional threshold and whether regional data is available using the report’s standard housing types. Aggregate prices may change from previous reports due to a change in the number of participating regions.
About the Royal LePage Recreational Property Advisor Survey
A national online survey of 202 brokers and sales representatives serving buyers and sellers in Canada’s recreational property regions. The survey was conducted between March 1, 2023 and March 18, 2023.
About Royal LePage
Serving Canadians since 1913, Royal LePage is the country’s leading provider of services to real estate brokerages, with a network of approximately 20,000 real estate professionals in over 670 locations nationwide. Royal LePage is the only Canadian real estate company to have its own charitable foundation, the Royal LePage Shelter Foundation, which has been dedicated to supporting women’s shelters and domestic violence prevention programs for 25 years. Royal LePage is a Bridgemarq Real Estate Services Inc. company, a TSX-listed corporation trading under the symbol TSX:BRE. For more information, please visit www.royallepage.ca.
List of Royal LePage recreational property experts:
Atlantic Canada
Annapolis Valley, NS
Logan Morse, Sales Representative
Royal LePage Atlantic
loganmorse@royallepage.ca
902-680-5752
Cape Breton, NS
Ian Hamilton, Owner
Royal LePage Anchor Realty
ianhamilton@royallepage.ca
902-225-0344
South Shore, NS
Corey Huskilson, Sales Representative
Royal LePage Atlantic
coreyh@royallepage.ca
902-680-5752
Avalon Peninsula, NL
Tim Crosbie, Broker/Owner
Royal LePage Property Consultants
tim@timcrosbie.ca
709-682-6609
Central Newfoundland, NL
Mike Turner, Manager/Owner
Royal LePage Turner Realty
miketurner@royallepage.ca
709-424-6517
Shediac, NB
Heather Fitzgerald, Sales Representative
Royal LePage Atlantic
heatherfitzgerald@royallepage.ca
506-875-3600
St. Stephen & St. Andrews, NB
Misty Flynn, Sales Representative
Royal LePage Atlantic
misty@royallepage.ca
506-866-8832
Quebec
Antoine-Labelle
Jessica Vaillancourt, Residential Real Estate Broker
Royal LePage Humania
jvaillancourt@royallepage.ca
819-808-9807
Argenteuil
Pierre Vachon, Residential and Commercial Real Estate Broker
Royal LePage Humania
pvachon@royallepage.ca
514-512-1598
Baie-St-Paul
Jean-François Larocque, Residential and Commercial Real Estate Broker
Royal LePage Inter-Québec
jfl@royallepage.ca
418-635-1191
Gaspé
Christian Cyr, Residential and Commercial Real Estate Broker
Royal LePage Village
christian.cyr@royallepage.ca
418-392-9927
La Jacques-Cartier and Côte-de-Beaupré
Marc Bonenfant, Residential and Commercial Real Estate Broker
Royal LePage Inter-Québec
marcbonenfant@royallepage.ca
418-561-3918
Les Appalaches
Mélissa Roussin, Residential and Commercial Real Estate Broker
Royal LePage Pro
mroussin@royallepage.ca
418-333-2214
Laurentides and Pays d’en Haut
Éric Léger, Residential and Commercial Real Estate Broker
Royal LePage Humania
eric@ericleger.com
514-949-0350
Matawinie and Montcalm
Éric Fugère, Residential and Commercial Real Estate Broker
Royal LePage Habitations
ericfugere@royallepage.ca
514-799-2847
Memphrémagog and Bromont
Véronique Boucher, Residential Real Estate Broker
Royal LePage Au Sommet
veroniqueboucher@royallepage.ca
450-525-2318
Papineau
Annick Fleury, Residential Real Estate Broker
Royal LePage Vallée de l’Outaouais
annick@equipefleury.ca
819-592-5152
Ontario
Bruce Peninsula
Chris Amyot, Sales Representative
Royal LePage RCR Realty
chrisonthebruce@gmail.com
519-649-8081
Haliburton County
Anthony vanLieshout, CRA, Broker of Record
Royal LePage Lakes of Haliburton
anthony@royallepage.ca
705-935-1000
Honey Harbour
Laurie Belsey, Broker
Royal LePage In Touch Realty
lauriebelsey@gmail.com
705-715-2010
Kawartha Lakes
Guy Masters, Broker of Record
Royal LePage Kawartha Lakes Realty
gmasters@royallepage.ca
705-328-4234
Lake Erie Shoreline
Deanna Gunter, Branch Manager
Royal LePage NRC Realty
deanna@royallepage.ca
905-688-4561
Land O’Lakes and Tweed
Diana Cassidy-Bush, Sales Representative
Royal LePage ProAlliance Realty
dianacb@royallepage.ca
613-966-6060
Mid Lake Huron/Huron & Perth County
Jeff Bauer, Broker/Owner
Royal LePage Heartland Realty
jeffbauer@royallepage.ca
519-525-7448
Muskoka
John O’Rourke, Broker/Owner
Royal LePage Lakes of Muskoka
john@rlpmuskoka.com
705-645-5257
The North Channel (Echo Bay, Desbarats, Bruce Mines, Thessalon, Iron Bridge, North Shore, Huron Shore, Blind River, Algoma Mills, Elliot Lake, Splanish)
Mariola Morin, Sales Representative
Royal LePage Northern Advantage
mariola@royallepage.ca
705-206-3110
Orillia
Anastasia Langiano, Broker of Record/Owner
Royal LePage Real Quest Realty
stasia@royallepage.ca
705-309-2541
Ottawa Valley
Aaron Cope, Broker/Manager
Royal LePage Team Realty
acope@royallepage.ca
613-552-4436
Peterborough County (Peterborough and The Kawarthas)
Gail Burton, Sales Representative
Royal LePage Frank Real Estate
gburton@nexicom.net
705-761-3165
Rideau Lakes
Pauline Aunger, Broker of Record
Royal LePage Advantage Real Estate
paulineaunger@royallepage.ca
613-285-9158
Southern Georgian Bay (Meaford, Thornbury, Wasaga Beach, Collingwood)
Desmond von Teichman, Broker
Royal LePage Locations North
teichman@royallepage.ca
705-444-7063
St. Joseph Island
Jonathan Stewart, Broker of Record
Royal LePage Northern Advantage Stewart Team
jonathan@stewartteam.ca
705-253-7105
Prairies
Interlake, MB
Tyler Bucklaschuk, Sales Representative/Broker
Royal LePage JMB & Associates
tylerb@royallepage.ca
204-642-8576
Lac du Bonnet, MB
Rolf Hitzer, Broker/Owner
Royal LePage Top Producers Real Estate
hitzer@mymts.net
204-960-2159
North Central Saskatchewan (Christopher Lake, Emma Lake, Candle Lake, Waskesiu Lake & Elk Ridge), SK
Lou Doderai, Broker/Owner
Royal LePage Icon Realty
lou@royallepagepa.ca
306-960-7925
Alberta
Canmore
Brad Hawker, Associate Broker
Royal LePage Solutions
info@canmorerealestate.com
403-678-7557
Pigeon Lake
Barbara Howey, Broker/Owner
Royal LePage Parkland Agencies
barbarahowey@royallepage.ca
780-361-7882
Wabamun Lake and Lac Ste. Anne
Tom Shearer, Broker/Owner
Royal LePage Noralta Real Estate
tomshearer@royallepage.ca
780-993-1515
British Columbia
Central Okanagan
Francis Braam, Broker/Owner
Royal LePage Kelowna
francis@kelowna.royallepage.ca
250-860-1100
Comox Valley, Denman Island, Hornby Island, Mt. Washington
Gregg Hart, Broker/Owner
Royal LePage In The Comox Valley
gregghart@royallepage.ca
250-334-7864
Invermere
Barry Benson, Broker/Owner
Royal LePage Rockies West Realty
barrybenson@royallepage.ca
250-342-5809
East Kootenays (Cranbrook, Kimberley, Fernie, Sparwood, Creston, Elkford)
Gavin Thomas, Managing Broker
Royal LePage East Kootenay Realty
gavinthomasrealtor@gmail.com
250-919-5533
Pemberton and Whistler
Frank Ingham, Associate Broker
Royal LePage Sussex
frank@frankingham.com
604-230-8167
SOURCE Royal LePage Real Estate Services
View original content: http://www.newswire.ca/en/releases/archive/March2023/28/c8867.html
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A real estate agent who lent a client $50,000 so she could afford to make a deposit on a property in Richmond, B.C., committed professional misconduct by doing so, according to a provincial regulator.
The B.C. Financial Services Authority, which investigates real-estate-related complaints from members of the public, has concluded that Wei “Vicky” Wang’s loan constituted a conflict of interest, and that Wang had committed misconduct by failing to avoid the conflict and by failing to advise her client of it.
The BCFSA’s chief hearing officer Andrew Pendray issued his decision on the matter earlier this month. It was published online Wednesday.
In it, Pendray wrote that the evidence before him supported the conclusion that the $50,000 Wang provided was a loan, and thus a conflict, despite Wang’s arguments to the contrary.
THE PURCHASE
Pendray’s decision came after hearings on the BCFSA’s fifth amended notice to Wang about the complaints against her from her former client.
All of the iterations of the notice centred on the client’s purchase of two homes – one in Richmond and one in Vancouver. Both addresses are redacted throughout the decision, as are the names of the client, her husband and other witnesses.
The loan related to the Richmond purchase, for which a contract of purchase and sale was executed on June 9, 2016, with a completion date scheduled for Oct. 4 of that year, according to the decision.
The agreed purchase price was $1,688,000, with a deposit of $90,000 – slightly more than five per cent of the total price.
Pendray’s decision indicates that Wang’s brokerage provided the BCFSA with two “receipt of funds records” relating to the deposit, one for $40,000 from the client’s account and one for $50,000 from Wang’s account.
The record for the $50,000 transaction included the note “loaning to the buyer temporarily,” according to the decision, and both Wang and the client acknowledged that Wang provided $50,000 toward the purchase of the Richmond property.
WANG’S DEFENCE
The real estate agent argued that the $50,000 she provided to her client should not be considered a loan because it wasn’t provided with the expectation of repayment with interest.
“When asked what she would call the $50,000 towards the (Richmond property) deposit, if it were not described as a loan, Ms. Wang indicated that she did not know, though she subsequently suggested that one could consider it to be a gift,” Pendray wrote in his decision.
“Ms. Wang stated that she and the client were friends, and that she had not thought much of providing the $50,000 at the time.”
Despite Wang’s suggestion that the money could be considered a gift, Pendray noted that she made efforts to secure repayment of it.
The money was wired back to Wang on June 29, 2016, after she and her client had exchanged WeChat messages about how and when she would be paid back, according to the decision.
In her defence, the decision indicates, Wang declined to say she had been repaid, insisting that the money had been “returned” in the same way one would return a car after borrowing it.
She also argued that the entire hearing had been unfair to her, submitting three times that it ought to be adjourned because the BCFSA had revised its allegations against her five times.
THE DECISION
Pendray rejected all of these arguments, writing that Wang has “long known the nature of the allegations against her” and that there was “no unfairness in proceeding with the hearing.”
He concluded that both Wang and her client understood the $50,000 to be a loan, not a gift, and that Wang expected to be repaid.
“Even if I was to accept Ms. Wang’s submission that in order for the $50,000 to be considered a loan, it is necessary that the loan have been provided in exchange for future repayment plus something more, the facts of this case lead me to the conclusion that there was, in this case, something more,” Pendray wrote.
The chief hearing officer noted that Wang received a commission of $22,538.78 for her role in the transaction. She could not have received that amount, he concluded, if the client had backed out of the purchase for lack of funds.
“In order to receive that commission, the purchase of that property had to complete,” Pendray wrote. “In order for the purchase to ever have had the chance to reach completion, the deposit on the property, as required by the contract of purchase and sale, would have had to have been paid.”
Having concluded that Wang provided the client with a loan, Pendray determined that doing so was a conflict of interest under the provincial Real Estate Services Act, and that Wang had committed misconduct.
He ordered Wang and the BCFSA to make submissions on what sanctions Wang should face for her behaviour, with specific penalties to be determined at a later date.
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The South Yarra property feels very secluded, every with its proximity to Chapel Street.
A winning collaboration by some of the best in the business has produced this luxurious modern sanctuary in a prized lifestyle location.
High-end builder Agushi teamed with celebrated Workroom architects and Nathan Burkett Landscape Architects on the private inner-city residence.
The four-bedroom, five-bathroom house at 12 Rockley Rd, South Yarra has hit the market with a $9m-$9.5m asking price.
Largely crafted from concrete – which even features on the sculptural curved staircase that links the home’s three levels – and marble, it delivers sophisticated interiors with carefully framed garden views.
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When at home, a mirrored lift, infinity pool with in-floor cleaning and a six-car basement garage provide the ultimate in convenience.
But it is the state-of-the-art automation that paves the way for a lock-up-and-leave lifestyle.
The technology has been a game-changer for vendor and interior designer Georgie Coombe-Tennant and her husband, Mark.
It has transformed the way they live, doing away with the need for front door keys and allowing them to turn on the oven remotely, let the postie in the gate while sitting on a ski lift or turn on the sprinkler from Europe.
A skylight runs from the outdoor entertainment area into the dining room.
Grey Damastas marble is paired with chocolate toned timber in the kitchen.
The curved concrete staircase is a standout feature of the home.
“We had always had old traditional homes and renovated them, and we just felt like it was time for something modern,” Mrs Coombe-Tennant said.
“We saw Bear (Agushi’s) work and my expression for his work is that everything is so resolved.
“He has not left a single detail out of it. If you think of something you would need in a home it’s there.”
She has delighted in decorating the home, which she said offers loads of space despite having a townhouse feel.
“I found the home is so easy decorate and furnish because you have got this beautiful blank canvas and you can put any amount of colour or neutrality into in,” she said.
As well as three living areas and four bedrooms, the two-year-old home has the luxury of two home offices with desks crafted of the same grey Damastas marble that features in the lavish kitchen and bathrooms.
There’s a sense of privacy once you’re inside the gate.
Enjoy pool views from the main living room.
Gather around the sunken seating area.
The main open-plan living zone screams entertainer thanks to a series of full height sliding doors linking it to a covered outdoor dining space with a built-in barbecue, a conversation pit and north-facing sun deck.
A second ground floor lounge room provides another breakout space, perfect for curling up beside the fire.
Despite its proximity to Chapel St and Toorak Village, Mrs Coombe-Tennant said the home felt secluded.
“I guess with South Yarra people are always worried about noise and things like that but it’s very, very quiet, it’s really secretive. No one knows it’s here,” she said.
“Once we are in that front door you don’t hear a single sound, but you have got everything on your doorstep.”
It’s wall to wall marble in this bathroom.
The garage can accommodate six cars.
Built-in desks feature in both home offices.
RT Edgar Toorak director Sarah Case added that it was rare to find homes of this calibre created specifically for a lock-up-and-leave lifestyle.
“This home has every luxury we’ve come to expect from Agushi, who’s renowned solid concrete construction, superior quality, generous spaces and meticulous attention to detail, while providing for a modern way of living with a lift to all levels, stunning pool and six-car garage,” Ms Case said.
“From the magnificent marble kitchen to the beautiful bedrooms and the poolside outdoor spaces, every aspect has been thoughtfully designed to meet the needs of even the most discerning buyer.”
Mr Agushi said he prided himself on building homes with “over specced” insulation, glazing, solar panels and smart home integration.
Expressions of interest close on June 15 at 5pm.
According the latest Proptrack Home Price Index, national home prices continued to stabilise in April after rising for the fourth consecutive month, rising 0.14 per cent.
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This has been a busy, bustling spring for the Toronto real estate market.
There are people who will say it’s all an illusion. A perfectly coordinated dance between snake oil selling realtors and their greedy clients, all unified in pumping a market currently back on its heels as means of personal enrichment.
How does that saying go — never let the truth get in the way of a good story?
They will say it makes no sense that the market should have any signs of life at all given the rollercoaster of the last 18 months (slash, the three years since COVID, if we’re being honest) and that with rates high and staying there, and prices still high and mostly staying there, we are looking at the furthest thing from a healthy marketplace.
And perhaps it’s all relative — things feel particularly energized because in comparison to last fall, we are actually seeing some action out there.
Houses in dodgy pockets fetching upwards of 20 offers, buyers seemingly undeterred by the needles on the street just steps away from the front door.
Cute houses in great pockets drawing multiple offers and landing peak-of-2022 prices.
Sellers who may have wondered if the time-was-now realizing they didn’t want to miss their moment.
There are many utterly baffled that the market has held. That prices have held. That the pain of 2022 didn’t reset the playing field.
They are adamant that any attempt to explain it by pointing to how grossly insufficient our inventory levels are is really just distortion and manipulation. The idea somehow being that people can be scammed into engaging and thus what we are really looking at is a mirage.
They think our problems will be solved if buyers simply stay home. Refuse to show up to houses that are underlisted. Refuse to engage in multiple offers. Refuse to pay a dollar more than list price. Refuse to pay realtor fees. Refuse to participate.
Legislate agents into listing at market value. Legally obligate sellers to accept any offer that meets the price they chose to list at. Cap realtor fees. The list goes on.
Absent from all of this is the reality very much apparent on the ground: for all of the noise and anger, Toronto has not enough houses and more than enough willing participants who are capable of driving a marketplace.
By this time next week, we will have stats to support that the spring market is very much here and with it I expect we will note a sharp increase in transactions and a notable bump to average sale prices.
Is it a seasonal blip that will fizzle out as temperatures rise? Entirely possible. But even just a return to some seasonal rhythms in our marketplace would be a welcome return to normalcy.
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