Albertans are Driving BC Resort Real Estate Suites in Search For the Best B.C. Recreational Pursuits

An Update on How Albertans are the driving force behind the last decade of BC resort real estate and recreational property throughout the Okanagan, Kootenays, Shuswap, Vancouver Island and beyond

Albertans may have eased up a little bit on the accelerator, but they are still driving the BC recreational real estate market forward into new and exciting horizons. Even after racing through a few record breaking BC resort real estate sales show they still have something left in the gas tank. This is an extremely well written and educational article written by D. Murray. Fueled by record-profits in the oil and gas industries and its related services and products, Albertans continue to shop for secondary homes in prime recreational real estate hot spots in the province of British Columbia. Leaving their footprints as far west as Vancouver Island resort real estate (partly because of the improved air service to Comox), Albertans still make their first choice for second homes and resort real estate purchases in the eastern and central regions of the BC recreational real estate market – where a holiday is within reasonable driving distance. “We are still seeing Albertans driving the demand for BC recreational real estate in the Okanagan, Kootenays, SHuswap regions,” said Curt of Lift Real Estate Sales and Marketing. “Although the recreational and BC residential markets are now becoming more normalized across BC, the demand for excellent recreational property still remains strong as the supply of that property is limited in BC.” And who can blame Albertans for wanting a piece of BC resort real estate paradise? No one! “Albertans lead the charge here,” said Robert the Economic Development Corporation executive director for Kelowna. “Resort property has been on the increase in this region and it is appealing to buyers primarily in Alberta.” After sampling a taste of summer on idyllic lakeside resort beaches, prairie people like Albertans are often tempted to turn a vacation location into a second home thorugh purchasing BC resort real estate properties close to home. It may be just for themselves on long weekend golf trips, summer holidays on the lake or winter ski getaways. Other Albertans enjoy extra income gained from renting their resort BC properties. All remain confident that the real estate investment in BC recreational property is solid for the long-term – perhaps for retirement or as a family legacy for generations to come.

A Higher Level View of BC Recreational Real Estate and the Albertan Influence

Albertans are still a strong influence in the BC resort real estate market throughout the Kootenays, Crowsnest and in the Okanagan. “You have a lot of Albertans enjoying the benefits of strong oil prices and looking for enjoying the lifestyle that can bring hem,” explained Elton of RE/MAX. “That is certainly where recreational property in BC is so attractive – specifically the Okanagan resort real estate market because of our summers, the lake and our winters too with the ski resorts. Our overall climate and four season recreational lifestyle is extremely appealing to not only Albertans but people across Canada.” Through much of southern BC resort real estate, golf season is a few months longer and ski trips are just a few minutes away form the major cities in BC – rather than hours. High in our majestic mountains, powder snow falls much more frequently through winter and the soft turns last longer int eh quieter locations from the Kootenays resort real estate to the Thompson Okanagan recreational property that Albertans love so much. In addition, summer boating, swimming and an abudance of water sports are popular in BC’s many large and lovely lakes – a geographic anomaly in Alberta. The many lures keep them driving here through every season. “I’m blown away with the number of Albertans in Kelowna and Westbank,” said Robert, sales director for Platinum Project. “It’s about lifestyle – Albertans seem to love BC real estate. We are seeing about 40 per cent of our purchasers at Copper Sky come from Alberta. They have lots of money – It has been a good number of years for them in their industry. They can now go anywhere they want and they still choose the Okanagan resort real estate market. They love the climate, they love the summer.” BC’s longer golf season has spurred the creation of new courses and golf communities in recent years to keep up with demand by our Albertan neighbours. There new golf courses opened in the Shuswap last year, two more were added to the Okanagan golf real estate market this summer and the Kootenays have a handful more adding to the mix recently or in the coming years. High-end BC golf communities are combining with ocean views to offer year round play on the greens on Vancouver Island. A report released at the end fo August confirmed that Albertans topped the list of home buyers in the Parksville/Qualicum region and were second in the Comox area for home purchasers of real estate of all types through the MLS in 2007. Independtly marketed BC resort properties on Vancouver Island were not accounted for in this survey. Besides Victoria, Albertans bought an average of 14 per cent of island properties last year – up from 10 per cent of the whole property market in 2006. After buying 19 per cent of the properties on the northern Gulf Islands in 2006 (a close second to Vancouver homebuyers), Albertans dropped to 10 per cent last year. This was the only region that reported as high as 15 per cent of purchases were destined to be vacation BC property real estate. Across the rest of Vancouver Ilsnad, about 95 per cent of the 2,100 responders purchased for principal residences.

BC Recreational Real Estate Beats Resident Property

Many BC recreational properties are bucking the downturn seen in most Canadian residential real estate markets over the past year (a natural evolution of the real estate cycle, especially after a long boom). BC’s resort properties remain sailing forward – although challenged to negotiate among the tumultuous seas rippling out from the US sub-prime mortgage storm. “The demand for BC recreational property has remained strong, however buyers are looking further afield,” said Elton, as he summarized some of the diminished sales reports through the RE/MAX annual spring survey of BC recreational properties. “Western Canada is now starting to feel some affects of a slowing world economy.” He said that some shopers are looking in the US Sunbelt, where some relative bargains arose with the falling US dollar and many foreclosures surface after the distastrous US sub-prime mortgage fiasco. Meanwhile, some US citizens also chose to sell their Canadian recreational properties to take profit through their improved currency exchange rate. The expanded inventory in BC resort real estate and recreational property clashed with a cooler than normal spring to turn a strong seller’s market towards the buyers’ favour. It’s all adding up to a year most likely to break the string of consecutive record-breaking years. “We’re coming off the longest period of economic expansion since World War II,” said Elton. “BC recreational property values have appreciated beyond our wildest dreams across the country. More balanced resort real estate market conditions are a welcome change for purchasers.” Fewer shippers were counted this spring while substantially more creational listings in BC were for sale in 41 of the 45 property markets surveyed. Still, average prices remained stable, or increased moderately from 2007 levels. “BC resort real estate market conditions have shifted, but don’t expect to see bargain basement prices or fire sales,” says Michael, the VP of RE/MAX. “The BC recreational market continues to experience solid demand – a trend that is expected to continue throughout 2008. The influx of new resort BC property listings has yet to translate into downward pressure on recreational property prices. Prime waterfront properties, while more plentiful than in year’s past, will still command top dollar.

The BC Resort Property Statistics Tell The Story

Statistics from the real estate boards through some of BC’s popular recreational areas reveal a softening of the overall real estate market – although the numbers do not show the separation of the recreational BC property market. Plus the totals don’t count a large number of sales by the developers themselves through pre-construction or presale BC resort real estate or marketing companies working outside of MLS. IN the Central Okanagan resort area, inventory is accelerating this summer and now approaching record levels on MLS according to the Okanagan Mainline Real Estate Board (OMREB). Properties of all types in Kelowna and its surrounding area climbed by 1,419 listings this July compared to 995 in July 2007 (up 43 per cent) while sales number dropped almost 40 per cent during the same time. July in the Shuswap real estate market in BC saw sales volume drop a similar 41 per cent to fall below $30 million, while the BC North Okanagan property market reported that unit sales dropped by a whopping 54 per cent. Listings were reversed in these two regions, with the Shuswap counting a 55 per cent increase over the two Julys and the North Okanagan property market climbing by 39 per cent. Still, prices continue to rise for BC resort property – although now at only half the 20-28% increase seen over the last four years. The South Okanagan Real Estate Board (SOREB) reported that MLS sales decreased by 44 per cent when comparing the last two Julys while active listings increased by 66 per cent. The Vancouver Island Real Estate Board reported milder numbers along a similar trend. Victoria’s real estate board reported sales falling in this time period by 33 per cent while inventory rose 34 percent – now standing at the highest level since May 1998. Prices are similar to where they were at this time last year, although lower than the average price was around December for resort BC property. Real estate is cyclical, and this is a return to more normal competitive market conditions. Condo development also skyrocketed, creating a lot more inventory than demand once complete. The whole baby boomer generation segment is looking at second homes or BC recreational property and certainly the Okanagan is the biggest beneficiary fo that, along with Vancouver Island. They have the wealth to do it, both Albertans and retired people. Baby boomers are clearly not the only home purchasers that appreciate the BC recreational lifestyle. Generation X is quickly becoming a force in the BC resort property marketplace, spurring demand for new condominium product on ski hills, oceanfront properties in good surf locales, and water frontage on trendy lakes with celebrity residents. Everybody has a dream of owning BC recreational property. Demand is still there and will always be there for new BC resort real estate.

Vacation Properties Take On a New Look – Community Snapshot

Another great posting by Susan B. for 24Hours newspaper. On October 15th, industry leaders and experts from across Canada gathered at Kelowna’s Grand Okanagan Lakefront Resort and Conference Centre for the First Annual Canadian Resort Investment Conference. Their message was clear: The resort/vacation real estate property industry in BC is strong, but changing. In today’s hurry-up world, it’s no longer the wilderness cabin hours away form the city that draws the deepest sighs of longing from potential buyers of vacation BC resort real estate. According to a just released survey by harris/decimal, 43 per cent of respondents indicated proximity to retail outlets was a feature they wanted in a BC recreational property. Perhaps not surprisingly, 48 per cent considered a classic “beach, sun, and sand” location to be desirable but even more – 55 per cent wanted on site pools and hot tubs. An astonishing 82 per cent wanted the ability to trade either their fractional rotation or timeshare for an equivalent time slot in different resort locations around the world. Even more astonishing was the revelation only 39 per cent of people who already own some form of vacation property in BC resort real estate currently have such exchange privileges. This would appear to bode well for Private Residence Clubs, a new twist on fractional ownership that unabashedly presents lavishly upscale, exclusive resort properties with the sought after ability to vacation elsewhere. But no matter how cottage ownership changes, Lize, senior vp of consulting and research with harris/decimal, stressed the desire to vacation does not diminish, even in the face of tougher economic times. It’s part of the Canadian dream she predicts will remain strong.