The pandemic has blurred the line between recreational real estate and primary residences, with the former catching the incredible upturn in prices being seen by the latter.
On the Sunshine Coast, a recreational region a BC Ferries ride from West Vancouver, the median price of a detached house increased 34.6 per cent in March, compared to a year earlier. This was the second- highest increase of any market, according to the Real Estate Board of Greater Vancouver, second only to Bowen Island, and twice as high as the average price increase in Greater Vancouver.
Across Canada, average property prices in the recreational regions will increase 15 per cent in 2021 to crest over $500,000, according to Royal LePage, which has upwardly revised its November 2020 price forecast to reflect a shortage of inventory and soaring demand.
“From coast to coast, the line between primary residence and recreational property is blurring,” said Phil Soper, president and CEO, Royal LePage. “The trend began last summer when the option of traveling abroad was taken away, and continued to gain popularity as it became clear that with access to high-speed internet, many people can do their jobs from just about anywhere.”
In 2020, the average price of a house in Canada’s recreational property regions increased 16 per cent year-over-year to $437,156 in 2020 compared to 2019. During the same period, the aggregate price of a waterfront property increased 9.8 per cent to $813,385 and the aggregate price of a condominium rose 10.5 per cent to $310,257.
A survey of 190 Royal LePage recreational real estate professionals across the country, found that 91 per cent said that their market has less inventory than typical for their region, including 72 per cent that reported significantly less inventory available.
Houses in the recreational regions of Ontario and Atlantic Canada are forecast to see the highest price appreciation in the country this year, set to increase 17 per cent, while prices in Quebec and British Columbia are forecast to increase 15 per cent and 13 per cent, respectively.
In B.C., 52 per cent of agents said a shortage of listings and rising demand is forcing buyers into multiple-offer situations, which often result in properties selling above the asking price. As in Atlantic Canada, two-thirds of B.C. agents say they have seen an influx of buyers from out-of-province during the pandemic, Soper added, and many of them are young buyers.
A Royal LePage survey released in February found that 47 per cent of Canadians aged 25 to 35 said they would choose to small town or country living over living in a city if given a choice. Fifty-two per cent said the availability of remote work has increased their likelihood to move further from their current or future place of work. Overall, 39 per cent of this cohort are considering a move from their current home to a less dense area as a result of the pandemic, the study said.
” Access to high-speed internet and the ability to work remotely are among the top criteria for those seeking properties in recreational regions, followed closely by four-season usability,” Soper said.
The average price of a house in B.C.’s recreational regions is forecast to increase 13 per cent in 2021 to $781,918. In 2020, the aggregate price of a house in the province’s recreational markets increased 12.9 per cent year-over-year to $691,963 compared to 2019. During the same period, the average price of a waterfront property increased 2.7 per cent to $1.74 million, according to Royal LePage.
Despite its 34 per cent price surge, year-over-year, the benchmark price of a Sunshine Coast house in March was $765,000, compared to a Greater Vancouver benchmark of $1.7 million.
In the central Okanagan, where the B.C. Real Estate Association reports that detached house prices increased 12 per cent in 2020, compared to 2019, to $588,000, local agents are bracing for a record-setting year.
“Our biggest challenge right now is extremely low inventory and increased buyer demand,” said Francis Braam, broker, Royal LePage Kelowna. “I expect we’ll see double digit price gains this spring.”
In Whistler and Pemberton, remote work and low borrowing costs remain a driving force behind increasing prices, agents say.
On the Sunshine Coast region, a BC Ferries trip from West Vancouver,
In Alberta, the average price of a detached house in recreational markets, such as in the Rockies or Sylvan Lake, is expected to increase 6 per cent this year to $942,881. “Canmore is seeing unparalleled demand from people,” said Brad Hawker, managing broker, Royal LePage Rocky Mountain Realty. “A growing segment of young and middle-aged buyers are seeking primary residences in the area.”
On the Prairies, recreational real estate prices are forecast to increase 9 per cent in 2021 to $260,862. Top areas are Manitoba’s interlake regions close to Winnipeg, agents say.
HALIFAX – A village of tiny homes is set to open next month in a Halifax suburb, the latest project by the provincial government to address homelessness.
Located in Lower Sackville, N.S., the tiny home community will house up to 34 people when the first 26 units open Nov. 4.
Another 35 people are scheduled to move in when construction on another 29 units should be complete in December, under a partnership between the province, the Halifax Regional Municipality, United Way Halifax, The Shaw Group and Dexter Construction.
The province invested $9.4 million to build the village and will contribute $935,000 annually for operating costs.
Residents have been chosen from a list of people experiencing homelessness maintained by the Affordable Housing Association of Nova Scotia.
They will pay rent that is tied to their income for a unit that is fully furnished with a private bathroom, shower and a kitchen equipped with a cooktop, small fridge and microwave.
The Atlantic Community Shelters Society will also provide support to residents, ranging from counselling and mental health supports to employment and educational services.
This report by The Canadian Press was first published Oct. 24, 2024.
Housing affordability is a key issue in the provincial election campaign in British Columbia, particularly in major centres.
Here are some statistics about housing in B.C. from the Canada Mortgage and Housing Corporation’s 2024 Rental Market Report, issued in January, and the B.C. Real Estate Association’s August 2024 report.
Average residential home price in B.C.: $938,500
Average price in greater Vancouver (2024 year to date): $1,304,438
Average price in greater Victoria (2024 year to date): $979,103
Average price in the Okanagan (2024 year to date): $748,015
Average two-bedroom purpose-built rental in Vancouver: $2,181
Average two-bedroom purpose-built rental in Victoria: $1,839
Average two-bedroom purpose-built rental in Canada: $1,359
Rental vacancy rate in Vancouver: 0.9 per cent
How much more do new renters in Vancouver pay compared with renters who have occupied their home for at least a year: 27 per cent
This report by The Canadian Press was first published Oct. 17, 2024.
VANCOUVER – Voters along the south coast of British Columbia who have not cast their ballots yet will have to contend with heavy rain and high winds from an incoming atmospheric river weather system on election day.
Environment Canada says the weather system will bring prolonged heavy rain to Metro Vancouver, the Sunshine Coast, Fraser Valley, Howe Sound, Whistler and Vancouver Island starting Friday.
The agency says strong winds with gusts up to 80 kilometres an hour will also develop on Saturday — the day thousands are expected to go to the polls across B.C. — in parts of Vancouver Island and Metro Vancouver.
Wednesday was the last day for advance voting, which started on Oct. 10.
More than 180,000 voters cast their votes Wednesday — the most ever on an advance voting day in B.C., beating the record set just days earlier on Oct. 10 of more than 170,000 votes.
Environment Canada says voters in the area of the atmospheric river can expect around 70 millimetres of precipitation generally and up to 100 millimetres along the coastal mountains, while parts of Vancouver Island could see as much as 200 millimetres of rainfall for the weekend.
An atmospheric river system in November 2021 created severe flooding and landslides that at one point severed most rail links between Vancouver’s port and the rest of Canada while inundating communities in the Fraser Valley and B.C. Interior.
This report by The Canadian Press was first published Oct. 17, 2024.
