Cheaper buys attract more of the 30- and 40-somethings
John Bermingham
Province
The soft recreational property market is drawing a slightly younger class of prospective buyer as the baby boomers back away a bit and the 30-to 40year-olds look for something in their price range. RIC ERNST — PROVINCE FILE
B.C.’s soft recreational property market is attracting younger Generation X buyers, a new report by Re/Max realtors says.
Elton Ash, regional vice-president for Re/Max in Western Canada, said yesterday that baby-boomers have back-stopped B.C. recreational real estate for the past decade.
But the pendulum is shifting to 30- and 40-something buyers, who want recreational homes for family-work balance, and can afford lower-priced properties.
Gen Xers account for half the demand for recreational homes this year, with boomers making up the other half, Re/Max said.
A year ago, it was a 25/75 split.
“The Gen Xers are looking at typically cheaper property . . . Buying a condo that’s across the road from the lake, but a great view of the lake. It’s $350,000, as opposed to $2 million,” he said.
Prices and sales volumes of B.C. recreational property have fallen 15 per cent this year from 2008. High-end properties on Saltspring Island, western Vancouver Island and Whistler have seen starting prices fall by up to a third.
“U.S. influence was huge in those areas previously,” Ash said. “And that has just dropped off the cliff.” Demand from Albertans, especially for Kootenay property, is off about 20 per cent from last year.
Overall, two-thirds of B.C. markets are reporting a decline in sales for the first four months of the year, while the rest are holding steady.
On Saltspring Island, where starting prices for oceanfront property have fallen from $1.3 million to $890,000 this year, Re/Max realtor Jan Macpherson said sales volumes had been half of what they were last year but picked up in May.
“The supply was so restrictive. Now it’s now opening up,” said Macpherson.
There are nine waterfront listings on Saltspring for under $1 million, compared with none a year ago.
In the North Okanagan/Shuswap, Re/Max broker-owner Brad Marsh said younger buyers account for a bigger chunk of local recreational-home buyers.
“While sales to baby-boomers have decreased somewhat, it’s being made up by Gen Xers,” said Marsh. “There are so many things to do here, and that appeals to the active Gen Xer.” Tsur Somerville, director of the Centre for Urban Economics and Real Estate at the University of B.C., said demand for recreational property will always be more volatile, because it’s a luxury.
“When times are good, money will flow into it,” said Somerville. “When times are bad, money will flow out of it, in much more extreme ways.”
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