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Recreational property catches the real estate wave – Western Investor

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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.

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Greater Toronto home sales jump in October after Bank of Canada rate cuts: board

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TORONTO – The Toronto Regional Real Estate Board says home sales in October surged as buyers continued moving off the sidelines amid lower interest rates.

The board said 6,658 homes changed hands last month in the Greater Toronto Area, up 44.4 per cent compared with 4,611 in the same month last year. Sales were up 14 per cent from September on a seasonally adjusted basis.

The average selling price was up 1.1 per cent compared with a year earlier at $1,135,215. The composite benchmark price, meant to represent the typical home, was down 3.3 per cent year-over-year.

“While we are still early in the Bank of Canada’s rate cutting cycle, it definitely does appear that an increasing number of buyers moved off the sidelines and back into the marketplace in October,” said TRREB president Jennifer Pearce in a news release.

“The positive affordability picture brought about by lower borrowing costs and relatively flat home prices prompted this improvement in market activity.”

The Bank of Canada has slashed its key interest rate four times since June, including a half-percentage point cut on Oct. 23. The rate now stands at 3.75 per cent, down from the high of five per cent that deterred many would-be buyers from the housing market.

New listings last month totalled 15,328, up 4.3 per cent from a year earlier.

In the City of Toronto, there were 2,509 sales last month, a 37.6 per cent jump from October 2023. Throughout the rest of the GTA, home sales rose 48.9 per cent to 4,149.

The sales uptick is encouraging, said Cameron Forbes, general manager and broker for Re/Max Realtron Realty Inc., who added the figures for October were stronger than he anticipated.

“I thought they’d be up for sure, but not necessarily that much,” said Forbes.

“Obviously, the 50 basis points was certainly a great move in the right direction. I just thought it would take more to get things going.”

He said it shows confidence in the market is returning faster than expected, especially among existing homeowners looking for a new property.

“The average consumer who’s employed and may have been able to get some increases in their wages over the last little bit to make up some ground with inflation, I think they’re confident, so they’re looking in the market.

“The conditions are nice because you’ve got a little more time, you’ve got more choice, you’ve got fewer other buyers to compete against.”

All property types saw more sales in October compared with a year ago throughout the GTA.

Townhouses led the surge with 56.8 per cent more sales, followed by detached homes at 46.6 per cent and semi-detached homes at 44 per cent. There were 33.4 per cent more condos that changed hands year-over-year.

“Market conditions did tighten in October, but there is still a lot of inventory and therefore choice for homebuyers,” said TRREB chief market analyst Jason Mercer.

“This choice will keep home price growth moderate over the next few months. However, as inventory is absorbed and home construction continues to lag population growth, selling price growth will accelerate, likely as we move through the spring of 2025.”

This report by The Canadian Press was first published Nov. 6, 2024.

The Canadian Press. All rights reserved.

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Homelessness: Tiny home village to open next week in Halifax suburb

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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.

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Here are some facts about British Columbia’s housing market

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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.

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