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Kelowna, BC (April 20, 2006) – The full impact of an aging baby boom generation is hitting recreational property markets across the country, according to a report released today by RE/MAX.
The RE/MAX Recreational Property Report, which highlights activity in 40 major Canadian centres, found that older boomers are fueling unprecedented demand for recreational properties in 67 per cent (27) of markets surveyed during the first quarter of 2006. Never before have those aged 50 plus been such a strong segment of the recreational property market.
“We’ve been expecting the first-wave of aging boomers for quite some time,” says Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. “They’ve paid their dues, they’ve contributed to society. These ‘seasoned citizens,’ the oldest of which turns 60 in 2006, are now looking to enjoy the fruits of their labour. Some are selling houses in major centres and making their way north, south, east, and west for their retirement years but others are keeping their homes and buying vacation properties for themselves, their children, and future generations.”
Boomer demand has also sparked an upswing in starting prices for three-bedroom, winterized recreational properties on waterfront lots. Virtually every market surveyed reported an increase. Once again, the most expensive markets are found in the West, with Whistler ($1.1 million), Salt Spring Island ($1 million), Shuswap Lake ($1 million), Kelowna (Lake Okanagan – $1 million), Penticton ($800,000 – $1 million), Sylvan Lake ($800,000 – $850,000) and Vernon ($800,000) representing the top seven. Ontario’s Bala/Port Carling area in Muskoka ($500,000 – $550,000) is the most expensive recreational property market in Ontario-Atlantic Canada. Some of the most affordable oceanfront properties can be found on Canada’s east coast, where starting prices are under $200,000.
“Baby boomers have played a key role in real estate markets across North America since the early 1970s,” says Michael Polzler, Executive Vice President, Regional Director, RE/MAX Ontario-Atlantic Canada. “In fact, they’ve influenced everything from education, to politics, to the stock market over the past five decades. It comes as no surprise that boomers have now set their sights on recreational property. Frankly, it makes perfect sense. They believe in real estate as an investment and view recreational property as a relatively safe bet.”
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RE/MAX Recreational Property Report…2
Limited inventory levels have been reported in approximately 50 per cent of markets surveyed. Most markets, however, are reporting recreational property sales for the first quarter of this year on par or ahead of 2005 levels.
Teardown activity is rampant in most areas of the country, as baby boomers construct year-round lakeside dwellings that offer all the comforts of home. Renovation is also occurring at full-tilt in markets across the country.
“This is a generation that has had it all,” says Polzler. “They’ve been the major force behind sales of luxury goods since the booming 1980s. Their homes reflect their success, whether they are in the city or the country.”
Although aging boomers are leading the charge for recreational properties, younger boomers and Generation X have also bolstered demand for properties from British Columbia to Newfoundland. Many of these purchasers are seeking more affordable properties and are willing to travel a distance to realize their goals and objectives.
“In Alberta, for example, the high cost of recreational property on Sylvan Lake has prompted younger purchasers to look at Gull Lake where waterfront can be bought at a fraction of the cost,” says Ash. “The same holds true for British Columbia, where buyers deterred by higher prices on Cultus Lake can travel further north to find more affordable properties on Harrison Lake. Similar examples exist in a growing number of Ontario markets.”
Report highlights:
Ø International purchasers from Europe, Asia, Australia, and New Zealand are fueling demand for big-ticket recreational properties in Salt Spring Island, Whistler, Sylvan Lake, Bala,/Port Carling, and Newfoundland.
Ø Americans, particularly those in the northern U.S. states, continue to play a major role in the sale of recreational properties across the country. The higher Canadian dollar has done little to dissuade buyers as prices for recreational properties in the U.S. reach peak levels.
Ø Condominium units on the water’s edge and the slopes continue to gain in popularity. The promise of a turnkey, low maintenance property, with full-time security has really struck a chord with today’s purchasers.
Ø Affordability is an issue in many recreational property markets. Some purchasers are looking at more reasonably priced back lot properties (some with deeded access to the water), second and third row homes, and raw acreage as an alternative to waterfront. Purchasers willing to make real concessions are considering remote properties on smaller lakes and rivers without hydro.
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RE/MAX Recreational Property Report…3
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1. Whistler News
Whistler kicked off the 2005/ 2006 with an early snowfall and as a result the mountains opened earlier than usual. The fantastic snowfall continued in January and provided our beautiful village and our mountains with 15+ feet of snow.
With the season almost over the snow conditions are still absolutely fantastic as the snow continues to fall. In terms of Real Estate, the market has picked up as the snow was falling. Please refer to the attached sales reports and the annual sales comparisons.
On the golf courses, preparations are starting to run up to full gear as the courses are scheduled to open in May. Pemberton, the little village only 30 minutes North of Whistler is already in full Spring mode and golf courses are already open in this beautiful valley that is surrounded by stunning Mountains.
2. Olympics and Real Estate in Whistler.
With the Olympic flag now transferred from Turin, the eyes of the world are now turning towards Whistler and Vancouver. Vancouver sales in Real Estate have already reached unsurpassed highs and further exciting future developments are in progress. Prices are going up in the city, while Whistler is just starting to pick up again on the Olympic hype after a healthy price correction within the last 15-month.
Real Estate interest in Whistler and Pemberton increased this season and still prices are at the lowest level for the last 18-month. At this point there are a variety of properties available at a fantastic price. The word and forecast is: That might change quickly.
Currently, the inventory consists of a variety of Condos, Chalets, Building Lots and for buyers/ investors it is the right time to buy into a market, that’s what we call “A BUYER’S” market.
There are some excellent investment opportunities in Whistler and the potential for Pemberton has not even scratched the surface yet. Pemberton will be the future artsy and organic satellite City North of Whistler with 3 more months of summer and a completely different climate. With an additional new office in Pemberton, REM/AX and Richard is able to provide you with all the services you need and would be delighted to guide and provide you with all the information needed to make the right decision.
With the planned airport expansion and a 5-year aggressive and progressive OCP plan to put Pemberton on the map – this is without a doubt an investment to look into as it could be considered the portal to Whistler. There is still big acreage available and horse lovers will discover that this will be the Kentucky of the North in the future.
Making it easier and faster to get to Whistler and also being able to enjoy the beautiful valley of Pemberton will definitely increase visitor numbers to the area and it will increase the revenue for business and price tag of your investment.
We are talking about a prudent investment with decent gains combined with enjoyment of your investment.
With the Olympic legacies around Whistler being developed, a possible airport in the area planned, and with the expansion of Whistler and Blackcomb Mountain terrain and new fantastic facilities such as the new lift in the backcountry of Whistler Mountain and the anticipated unbelievable Peak-to-Peak Gondola that will connect the two mountains. This plus incredible extended zip trekking, mountain Bike Park, and hiking trails will make the Resort an even more attractive year around destination. Not to mention the already existing three world famous golf courses in town, Furry Creek on the way to Whistler and Big Sky and the Pemberton Golf & Country club only 25 minutes away, makes this area the ultimate playground in life style.
Why not own in Whistler or Pemberton and experiencing the Resort as proud locals?
The Whistler market is becoming hot again and the prices have not gone up yet. Canada will be the most preferred country of immigrants and investors due to the beauty of the country, the liberal approach of the government and the melting pot of people who have migrated from all over the world and the endless opportunities to make it here or just relax and enjoy the seasons.
Let’s not forget the new discovery of Squamish by Investor’s and Vancouverites; it’s only 35 minutes to West Vancouver and the same time to Whistler. Council and planners of Squamish have taken a very inventive and progressive approach to change this post-logging town into a flourishing suburb of West Vancouver and a South of Whistler shopping opportunity with retail stores and Wal Mart to be there soon. As Squamish is not my area of work, I would be happy to refer and match you with one of my fellow Realtor’s to find you a great investment with fantastic returns in the Squamish area.
3. Richard Christiansen of RE/MAX Sea to Sky Real Estate at your Service
At the present time we have 145 Chalet’s and Duplex’s (17 Duplexes) for sale with an inventory of 443 Condominiums and 55 building lots.
Richard works on a new project, which involves affordable single-family lots. This affordable housing project should be on stream within the next two years located at the Pemberton Meadow area.
Further, Richard is a close friend to the owner of the most awarded and prestigious development in Kelowna. The total development of 2000 acres+ includes residential, commercial, estate lots and a new community just 5 minutes away from down town Kelowna. Unobstructed views over the pristine country and over Lake Okanagan will make you feels like being in Italy with the warm climate and almost year around golf. Buy your fruits and veggies from the source and just pay half of the price as offered anywhere else. Ride your bike or horse or swim in the lake, take your houseboat and enjoy life.
Have you ever heard of the Lilloett Lake Estate? . Just 50 minutes away from Whistler by car. Gorgeous settings surrounded by the spirit of First Nations, accessible by floatplane within 18 minutes and 50 minutes by car. Richard has a gem to set you up for a corporate retreat or a relaxing time with your friends and loved ones in one of the most beautiful, natural and spiritual environment. For more information please contact me directly.
Don’t miss out on investment opportunities, call today for more information. Love to be your Buyer’s agent to get the best deal possible for you.
Richard Christiansen
RE/MAX Sea to Sky Real Estate Whistler
Toll Free 1-888-689-0070 ext 366
Desk:604-905-6366
Cell:604-938-4360
FAX: 604-932-4120
email:[email protected]
