Nearly 22,000 B.C. houses are now worth more than a million dollars

Fiona Anderson
Sun

Source: B.C. Assessment. VANCOUVER SUN Soaring values

B.C.’s surging home market has nearly doubled the number of real estate millionaires in the past year with 22,000 single-family dwellings now assessed at more than $1 million.

The massive increase in real-estate wealth comes mainly from rising prices fuelled by a booming market and a strong economy.

“The main drivers [behind the increases] are the great economy, job growth, population growth, consumer confidence and mortgage and interest rates [which] are still low from a historic perspective,” Cameron Muir, senior market analyst with Canada Mortgage and Housing Corporation said in an interview.

“It’s no surprise, given the ramp-up in prices over the last two years.”

It’s unlikely that trend is going to change soon, Muir said. As long as demand for housing outstrips supply, prices are going to continue to rise, he said.

The largest concentration of real-estate millionaires continued to be in Vancouver, but the biggest increases were outside the city and in many cases outside the Lower Mainland.

The 2006 assessment roll, which is based on values calculated on July 1, 2005, lists 21,890 single-family detached homes as being worth more than $1 million, up 79.4 per cent from 12,204 on the 2005 assessment roll, and up 187 per cent from the 7,633 million-dollar homes assessed for 2004.

Vancouver was home to 8,270 single-family dwellings that reached the million-dollar mark, up 64 per cent from last year’s 5,056. That number does not include the numerous high-end condominiums in downtown Vancouver that have sold for well over $1 million.

Throughout the province, Whistler experienced the only decrease in million-dollar home- owners, falling slightly from 1,055 in 2005 to 1,043, the second year in a row the resort town saw a drop.

In Langley, the number of million-dollar homes increased more than 45-fold from six to 276, and in rural Courtenay on Vancouver Island there were 59 homes in the million-plus range where there were none a year ago.

In Langley, land value is pushing up prices, said David Rishel, president of the Fraser Valley Real Estate Board.

For example, the average home on a parcel of land in Langley that is half an acre or more was $982,000 in March, Rishel said.

“So it doesn’t have to take a whole lot,” Rishel said. “If the prices in general are going up 17 per cent there are a bunch more homes that are going to be over the $1 million-price range.”

Langley has typically been a rural community and it’s just in the past three or four years that it has exploded as far as residential development is concerned and that drives those land values, Rishel added.

“I’ve been in this business for more than 20 years and I remember almost every year saying, “How can prices go up any more than what they are right now?” But it just continues to always go up,” Rishel said.

In the Courtenay area, the big jump in million-dollar homes is with waterfront property, said Marty Douglas, managing broker with Coast Realty Group in the Comox Valley.

Courtenay has become more accessible because of the new Island Highway, which makes Nanaimo only 30 minutes away, and because of direct flights from Alberta to Comox, Douglas said.

This ease of access is prompting people from Alberta, Victoria and the Lower Mainland to migrate to the area, driving up prices. That means locals can afford to sell their homes and buy something bigger or better themselves, he said.

“People are saying “okay we’ve got our equity out and we can finally afford our dream home or waterfront.”

“So, just as people from Calgary and Victoria have been migrating to the Comox Valley, people from the municipalities in the Comox Valley have been moving out or just buying for investment.”

The B.C. Assessment Authority assesses properties each year based on market value.

John Barry, Assessment Authority community relations manager, said the jump in million-dollar homes reflects market increases, particularly in waterfront properties.

Does the sudden increase in real estate wealth mean a sudden jump in taxes?

The Assessment Authority provides these figures to municipalities, which use the information to determine their tax or mill rate based on how much money they need to raise.

It all comes down to what local governments must budget for, and in some cases municipalities could lower the mill rate and taxes could decrease, Barry said.

“Just because their assessed value has increased, it doesn’t necessarily mean their tax will go up,” he said.

© The Vancouver Sun 2006

Fiona Anderson
Sun

Realtor David Langlois in front of a home he sold in Squamish. Photograph by : Bill Keay, Vancouver Sun

SOURCE: VANCOUVER SUN

With the real estate market showing no signs of slowing down, and buyers snapping up properties as soon as they are listed, one thing that shouldn’t be rushed is picking a realtor.

The relationship between a buyer or seller and a real estate agent is a pretty serious one, especially in this overheated market where buying time is compressed, Real Estate Board of Greater Vancouver director Dave Watt said.

The Greater Vancouver area — which stretches from Whistler to Tsawwassen and Maple Ridge — has 8,000 realtors and there are more than 17,000 in the province so there are a lot to choose from..

“Trust me, you’ll find one that you’ll like,” Watt said.

Provided, that is, that you take your time.

The best way to find a realtor is through recommendations, Watt said. Ask friends, ask family, and interview realtors. Ask for references from past clients. And most importantly, ask them questions to see how well they know the local market, he said.

“Not only do [realtors] have geographical areas that we specialize in, we typically specialize in a type of housing, maybe it’s condominiums, maybe it’s detached housing, maybe it’s working with new housing,” Watt said.

Make sure the realtor has the specialty you need, he stresses.

If no one can recommend a good realtor or you are new to town, drive around the neighborhood you are hoping to buy in, and check out “For Sale” signs, Watt said. If there is an agent that has a lot of signs, he probably knows that local market.

Open houses are also a way to meet realtors, and you can do it anonymously, Watt said.

“See if you feel they know the local market and just get a sense if you can work with that person,” he said.

A potential buyer or seller can also find names on the Internet but Watt wouldn’t recommend that.

“I’d be careful that they don’t just have a good website,” he said.

Besides ensuring the agent knows the local market, a seller should also ask a potential agent what commission the agent will charge and what he will be doing to earn that commission. The board sets no rules about commissions, so it’s completely up to the selling agent who then shares the commission with the buyer’s agent, Watt said. Watt recommends interviewing at least three agents to find out what they will charge and what services they will provide.

And don’t be afraid to fire the realtor if he is not living up to his promise, he said.

Michael La Prairie, owner of Century 21 In Town Realty in downtown Vancouver said there is no city-wide set commission rate but there is a standard rate his realtors aim for. That rate charges seven per cent on the first $100,000 of the sale price and between 2.5 and three per cent on everything above that.

“There are companies that charge less but you don’t get as much service and professionalism,” La Prairie said.

La Prairie’s 80 agents will take 52 per cent of the commission on properties they’ve listed with the remaining 48 per cent going to the buyer’s agent, he said.

Although the rate is not set in stone, La Prairie said that his agents would never stray from the standard rate, unless there were very special circumstances, such as selling a property for a family member.

Elton Ash, regional executive vice-president with Re/Max Western Canada, said there is no set commission rate that Re/Max realtors must charge in B.C. But individual offices may set rates for their agents.

Les Twarog, a realtor with Re/Max Crest (Westside) Realty said his office charges seven per cent on the first $100,000 and three per cent after that, much like Century 21. That rate may be negotiable in special circumstances, such as for repeat customers, Twarog said.

David Langlois, a realtor with One Percent Realty in Squamish charges a set commission of $5,000 up to $500,000 and then a one-per-cent commission for any amount above that. He adds fees on top of that, which amount to $965, including GST, for a sale price of $500,000.

Paying any more than that doesn’t make sense in this kind of market, Langlois said.

“Just because your house is worth twice as much as it was when you bought it, why should the realtor benefit from that?” Langlois asked.

In fact, in a hot market, the realtor’s job is actually easier, another reason commissions should be lower, he said.

Langlois has been a member of the Real Estate Board Greater Vancouver’s medallion club for the last two years which, according to board president Rick Valouche, recognizes the area’s top realtors, based on a combination of units sold and value of sales.

“[Medallion club realtors] have shown to the public that they take time and effort to work with their clients to best buy a property or list a property at fair value,” Valouche said.

A medallion club member can use the board’s medallion symbol on his cards, Valouche said. And generally the same names appear on the list year after year, he said.

So checking for a medallion symbol may be another way potential buyers and sellers can evaluate a realtor.

People can also check out the Real Estate Council of B.C.’s website which lists all licensed realtors. The council, which is responsible for licensing and regulating realtors, also lists all disciplinary decisions involving licensees since 2004, a good thing to check out to determine whether an agent has had complaints made against him in the past.

Tony Schollen and his wife have decided against using a realtor to sell their house in Maple Ridge and instead have have listed their home on www.bchomesforsale.com.

The couple want to save money and they prefer talking directly to a potential buyer, Schollen said. He determined the asking price by checking out listings on the internet, reading newspaper ads and going to open houses.

The Schollens have had one offer since they listed the property two weeks ago and lots of interest. And ultimately they are still undecided whether they want to sell. But with the website costing $90, and an ad in the Buy and Sell being a couple of bucks, it’s not going “to break us if we do change our minds,” Schollen said.

But Langlois recommends sellers use a realtor because realtors know the process and know how to sell.

“That’s why we exist,” he said.

Using a realtor gives the seller access to the multiple listing service and www.realtylink.org, operated by the Real Estate Board of Greater Vancouver.

“You get more exposure [and] exposure is what sells a place,” Langlois said.

REAL ESTATE COMMISSIONS

In theory, real estate commissions are negotiable, but the firms contacted said their structures are firm. People selling property pay a commission to the selling agent who shares it with the buyer’s agent.

© The Vancouver Sun 2006

Market is being driven by aging baby boomers who want to spend their money on quality of life

Michael Kane
Sun

BONNY MAKAREWICZ/SPECIAL TO THE VANCOUVER SUN $12.5 MILLION GETAWAY CABIN: This 4,800 sq.ft. craftsman luxury home in Whistler’s Taluswood neighborhood is currently listed for $12.5 million.

Executives are paying $1 million-plus for waterfront homes. Photograph by : Mark van Manen, Vancouver Sun Files

Aging baby boomers are fuelling an unprecedented demand for recreational property, even in British Columbia, which has the most expensive recreational homes in the country.

Foreigners and Alberta oil executives are paying $1 million-plus for winterized waterfront homes on Saltspring Island, Shuswap Lake and Kelowna, while middle-income earners are settling for condos or back-lot properties with waterfront access, or more affordable locations like Harrison Lake in the Fraser Valley or the Interlakes area of the Cariboo.

The market is being driven by aging boomers who are earning good money and want to spend it on quality of life rather than mutual funds, said Elton Ash, Kelowna-based vice-president of Re/Max of Western Canada.

“The whole economy is clicking very well but there is also the trend to longer hours, stresses at work, and the kids being dropped off at daycare, so quality of life becomes very important,” Ash said in an interview.

“People know the stock market has recovered and there are some opportunities there but they are saying, ‘How does that improve my quality of life when the kids hardly see me? I want to give them the experience I had as a child growing up and going outdoors and spending the weekends and holidays as a family’.”

The Re/Max Recreational Property report released Thursday shows that buyers aged 50-plus are fuelling unprecedented demand in 27 of 40 markets surveyed across the country.

Some boomers are inheriting the money to buy a second home while others, with good incomes and job security, are taking out mortgages, Ash said. To a lesser extent, artisans and high-tech workers, who don’t need to be in the office, are selling up in the city and making their year-round homes in places like Saltspring.

Early retirees who are “trading down” are also a segment of the market in places like the Okanagan, Saltspring, Vancouver Island and Nelson, he said.

While volume demand for recreational property is coming from middle-income earners, they have been priced out of the most expensive markets like Whistler where the starting price for a typical, three-bedroom home off the mountain is $1.1 million and homes on the waterfront and ski slopes start at $2.5 million and $3 million respectively.

“You are not going to get much of a house, as we think of a house, for much less than $1.1 million,” said Whistler realtor Mike Wintemute of Re/Max Sea to Sky Real Estate. “You can buy a house in Emerald Estates [on the outskirts] for about $700,000 but you’re basically getting an old cottage.”

On Saltspring, about 70 per cent of big ticket buyers are Americans and 20 per cent are Canadians, mostly from Alberta, said Re/Max realtor Li Read. To a lesser extent, wealthy Europeans, Asians and Australians are also buying second, third and fourth residences to support their globe-trotting lifestyles.

In another sign of a booming domestic economy, the report says teardown activity is rampant in most areas of the country as baby boomers construct year-round lakeside dwellings with all the comforts of home. Renovation is also occurring at full-tilt in markets across the country.

Ash said boomers aren’t too concerned that the market might fall back in a year or two because they are buying for the long term.

“They know prices aren’t going to get significantly cheaper and they are looking for the opportunity to enhance their family lifestyle today and to leave a bit of a legacy for their children to enjoy.”

© The Vancouver Sun 2006

The Lower Mainland has it all — except, perhaps, affordable habitation for those trying to break into a booming market that shows no sign of slowing

Shelley Fralic
Sun

How hot is hot property in the Lower Mainland? So hot that when you log on to the mls.ca website, as any self-respecting lookie-loo does with some regularity, you’ll discover there are 150 Greater Vancouver condominiums — we repeat, condominiums — priced at more than $1 million.

So hot that when you search the site for single-family homes in Greater Vancouver priced between $1 million and “unlimited” — unlimited clearly being the height of prescience in this market — there are so many hits that the site suggests you narrow the search.

So, you plug in the word “detached,” and still there are close to 500 houses listed at more than $1 million, the most expensive being a modern West Vancouver waterfront estate priced at $20.8 million.

Sign on the dotted line and you’ll get 11,000 square feet for that kind of money, with a bunch of bedrooms and bathrooms, maid’s quarters, a pool and waterfall, and a boat house.

(If you follow such things, and who doesn’t, you also know it’s not even the most expensive house currently listed in B.C. — that distinction goes to a $25-million waterfront estate in Victoria.)

While you’re recovering from that breathtaking discovery, you decide to search for the least expensive house in the Lower Mainland, recalling the (what now seems like a) pittance you paid for your own house in the ‘burbs 18 years ago, or the even more mind-boggling $17,000 your folks paid for that elegant Tudor on the big lot in South Vancouver in the mid-’60s.

Welcome to 20457 Lorne Ave. in Maple Ridge, at this moment in multiple listing service time, the cheapest house on the market in Greater Vancouver. Price tag: $237,900.

It’s a two-bedroom, one-bath old-timer on a 60-by-100 foot lot with 1,016 square feet of livable space. Or as realtor Daryl DeMarco’s listing says: “Westside rancher. Needs work but appears to be a solid house. Hardwood under existing flooring. Loc. corner of Lorne and Hammond.”

That puts the house, which hasn’t been updated in 30 years, smack dab on the corner of a busy railroad crossing — not exactly the location, location, location one would hope for, but these days not expected to be the purchasing roadblock it might have once been.

Even DeMarco can’t believe the market these days.

“When I started out just over 15 years ago, the cheapest house in this area was $80,000 to $85,000. I was shocked when they went up to $120,000. I thought, ‘who’s going to pay $120,000?’ “

In fact, if you search the Lower Mainland housing market today, you need to start at about $250,000 — unless you’re in the market for a float home, a double-wide in a trailer park or a waterfront cabin accessible only by water.

Even elsewhere in B.C., there are shockingly few hits under $200,000, but for, say, a little $59,000 cutie in Wells, and houses in places like Bowser, Dawson Creek, Campbell River, Sayward and Nanaimo, where entry-level can start in the mid-$100,000 range.

Back in this neck of the woods, it’s clear that shopping for a house with a little piece of land is more like hitting Harrod’s with a pocketful of green stamps.

So you leave the single-family category search and switch to the condo market, which is surely more sane, you think, until you punch in a search for Greater Vancouver condominiums under $100,000.

Up pop several strata rooms in Richmond hotels (cheap like borscht, yes, but they’re essentially one room and don’t have kitchens), and a number of condos with outstanding repair assessments, a common trait in leaky condo land where many of the units on the market are saddled with assessments as hefty as $80,000, payable by the purchaser.

The best unencumbered deal under $100,000 takes you back out to Maple Ridge, to a one-bedroom, 640-square-foot unit with amenities that include “central location, recreation nearby, shopping nearby, storage, air-conditioned, drapes/window coverings, passenger elevator, shared laundry.”

For $95,000.

It’s a 34-year-old condo, in a three-storey building, with a monthly maintenance fee of $191.

While you’re mulling your tragic decision not to buy that Whistler condo for $29,000 back in the ’80s, you punch in the big condo numbers.

And there it is, the most expensive apartment in Greater Vancouver, one of about 150 priced at more than $1 million currently on the mls.ca site.

Way over $1 million, actually.

The hottest condo property is a two-storey penthouse on Lost Lagoon, its 5,000 recently renovated square feet covering the 19th and 20th floors of the Presidio building on Barclay, taking in unobstructed 360-degree views from an assortment of balconies totalling 1,350 square feet.

For $9.8 million, you get private elevator access, several bathrooms, a library, a media room, dining and living room. The custom kitchen is massive and has a 600-bottle wine cooler.

A stainless-steel open staircase connects the two floors and there’s an outdoor kitchen off the second-floor guest suite.

One of the terraces overlooking the lagoon has a funky free-standing circular office just steps from an infinity-edge hot tub.

The walls throughout the place are cladded in limed oak and the radiant-heat floors are honed limestone.

It’s a beauty, to be sure, even though it only has two bedrooms and a condo fee, should you be interested, of $1,500 a month, or roughly a year’s worth of mortgage payments on the three-bedroom bungalows that were selling like hotcakes in the south Vancouver post-war subdivisions back in 1950.

And you think, who would have thought it?

Because this has been less an exercise in voyeurism than it has been an education in this harsh reality: The pursuit of the white picket fence, for many Lower Mainlanders, has become nothing more than an unwinnable Internet board game.

May we suggest it be called Sticker Shock.

© The Vancouver Sun 2006

You’ll be lured by clever ploys, tempted to bid a fortune without subjects

Jollean Willington
Sun

Freelancer Jollean Willington finally found a home after much work and the heartbreak of more than a dozen failed offers. Photograph by : Ian Smith, Vancouver Sun

In today’s hot market, being on the front lines of buying a home in the Lower Mainland is not for the faint of heart.

It requires commitment and training. Weeknights are spent driving around casing out preferred areas and viable listings. Orienteering comes in handy when planning the open-house circuit. Spare moments are on the Internet wading through MLS listings.

It’s been more than a year since my fiance and I started searching for our first home, and the hunt has taken over our lives. We write contract subjects in our sleep.

We’ve seen it all, from assessment-plagued condos in Kitsilano to detached houses in Burnaby. Often at viewings, I smile and nod to people in the squirming masses, explaining to my partner that I recognize them from other open houses.

We really should have a support group. We could call it “Buyers Anonymous,” and people could stand up and confess to placing offers without subjects at outrageously high prices. I would go. I have had my temptations, like that beauty near Commercial Drive …

I have seen more than my fair share of clever marketing strategies employed by agents and sellers, including the lengths they will go to in order to stage a house for sale — right down to arranging the cans in the kitchen cupboards (yes, I looked).

At that showing, buyers were so caught up with the colour schemes and Ikea-like minimalism that they tried desperately to write offers in the living room. The real-estate agent politely explained that offers would be accepted only three days from the viewing, at precisely 6 p.m.

As the living room emptied in a scurry of whispers, another price war began. That particular two-bedroom, plus den house with a one-bedroom suite, near the PNE, was listed at $549,000. A few days later, it was re-listed at $599,000 and quickly sold for $605,000.

The owners had bought it a year and a half earlier for $374,000. Almost all upgrades to the old house were purely cosmetic, without structural upgrades to plumbing or electric wiring. Depending on your point of view, it was either somewhat inspirational or downright frightening.

Location is still the holy grail of the house hunter. Lousy buildings in great areas are like hen’s teeth, and my job as a wily consumer is to see past the urine-soaked carpets or collapsing roof to the beauty that shines beneath the 40-year-old linoleum.

The term “lot value” comes up as if to reassure the panicked buyer that if all else fails, at least they have land. That would be more reassuring if you could actually afford to hire tradespeople to build a house on it, which is not likely considering the purchase price.

This may seem obvious, but so was the 25-degree tilt of one house I saw. Seriously, you could have put a marble on the kitchen table and knocked out someone’s teeth on the other side of the room. Located in a hot “up and coming” area of town and with an asking price of more than half a million dollars, it included a second bathroom crammed into the master bedroom’s closet.

Parts of this particular “up and coming” neighourhood were still a little sketchy. On an evening drive-by of the “leaning wonder,” we had stopped the car when a neighbour suddenly ran down his rickety stairs and over to our car. Waving frantically and calling me “Diego” with his head jammed into my window, he tried to usher us into his house. At this point, our concept of “up and coming” up and left.

The really hilarious thing about this property is that for about 18 hours, we seriously tussled with the decision of whether or not to make an offer. Relieved, we realized that we wouldn’t be able to have family or friends over for dinner without loading them up with libations in the yard first so they wouldn’t notice we had bought a fun house.

The pressure was even more intense because we realized we were not just buying a home with a huge price tag, but an investment. When your home could bring a higher return than some stocks, the pressure to get in the market is a serious factor.

We have moments of doubt, wondering about the illusive “correction” that some vow is sure to happen. This thought could offer hopeful calm in a realty storm, but show me a viable property that has devalued over time.

And while prices continue to climb, so do interest rates. In the past nine months of writing offers, we have watched as the cost of a house in our price range has risen by about $90,000.

Some people blame the greed of sellers, the influence of agents and the lack of inventory for inflated prices. I argue that it is a buyer-driven market, because buyers are the ones paying the high prices. Buyers create lulls, set new benchmarks and decide which area is “up and coming.” Sellers may ask for a “clean offer,” but it is the buyer who throws due diligence out the window or pays for an inspection without an accepted offer.

Finally, after the heartbreak of more than a dozen failed offers, we have found our home. So you won’t see me at any more open houses, but I’m sure you’ll have plenty of company. Now to the rigors of yardwork!

© The Vancouver Sun 2006

B.C. now magnet for recreational-property buyers

Jim Jamieson
Province

Recently sold, this recreational property is in Spruce Grove, a short stroll from Whistler’s hot market.

B.C. is dominating the booming Canadian recreational-property market, according to a survey released yesterday by RE/MAX.

Thanks to B.C.’s robust economy and the burgeoning influence of the boomer generation, the province’s recreation destinations take up seven of the top eight spots on the RE/MAX list of average starting prices across Canada.

The RE/MAX study found that the 50-plus age group was fuelling unprecedented demand for two-thirds of markets surveyed.

“We are certainly seeing a full-on interest from that segment of the population,” said Elton Ash, regional executive vice-president RE/MAX of Western Canada.

“But the middle income, younger people are also interested. It’s a lifestyle thing.

“The economies in Alberta and B.C are strong, couples are working long days with kids in daycare and they want to improve their quality of life by spending time at the lake on weekends.”

Shuswap Lake is one of the fastest appreciating recreational property areas in the country.

The area’s average starting price has risen to $1 million from $250,000 in 2002.

“Two years ago you could have bought a lakefront property with a cabin for around $250,000 to $290,000,” RE/MAX agent Karen Singbeil said. “We sold a teardown last year for $920,000.

Singbeil said this property, 1.5 acres on Mara Lake, was bought and sold by Calgary families.

Because of easy access, Shuswap Lake is a popular investment for Albertans, she said.

Whistler RE/MAX agent Mike Wintemute said over the past year the resort has experienced a five-to-10-per-cent increase in single family detached prices.

Wintemute recently sold a two-year-old, four-bedroom house in the Spruce Grove area just north of Whistler town centre for $1,345,000 to a family from the United Kingdom.

“We have seen the number of U.K. visitor and buyers increasing,” said Wintemute.

“Often it’s cheaper to fly here and do a ski trip than it is for them to go to Switzerland or France. And it may be cheaper than recreational property in the U.K.”

RE/MAX agent Li Read said a growing number of property buyers on the Gulf Islands are from out of country.

“People would love to live in a pristine Stanley Park environment, and there is a lid on development so that’s why we’re expensive,” she said.

“I sold an ocean-view property for $3 million in June and sold it again in August for $3.75 million. That told me we had come to an international buyer.”

RE/MAX agent Alex MacDonald said Harrison Lake — at $550,000, No. 8 on the list — continues to be popular with Lower Mainland buyers but has a shortage of property on the market.

“People are investing in second properties, because they don’t want to get into the stock markets,” he said.

“They see it as a good investment opportunity.”

Ash said the survey didn’t include Quebec as there was a difficulty attaining overall market data.

Lisa Rochon
Other

Download Document

Other

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.”

– more –

                                                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.

– more –

RE/MAX Recreational Property Report…3

RE/MAX is Canada’s leading real estate organization with over 15,900 sales associates situated throughout its more than 620 independently owned and operated offices across the country.  The RE/MAX franchise network, now in its 33rd year of consecutive growth, is a global real estate system operating in over 63 countries.  More than 6,200 independently owned offices engage 116,500 member sales associates who lead the industry in professional designations, experience and production while providing real estate services in residential, commercial, referral, relocation and asset management.  For more information, visit: www.remax.ca

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]