Vacation properties across British Columbia are seeing increased demand and correspondingly accelerated price growth—a development spurred on by denizens of Metro Vancouver continuously snapping up cottages situated within reasonable travelling distance from the city.
“Low inventory levels and the return of consumer confidence are driving prices up in recreational markets across the province,” according to Royal LePage Western Canada manager Jim Morris, as quoted by Western Investor.
The latest edition of the Royal LePage Canadian Recreational Housing Report noted that B.C. recreational properties now sell for an average of $595,077, with the most expensive ones in Okanagan Lake or the Gulf Islands going for roughly 2 up to 4 times the average cost.
“We have seen homeowners selling in Vancouver and buying recreational property in areas like Denman Island, causing a significant decrease in available supply this year,” Royal LePage Comox Valley sales representative Sylvie Schroeder stated. “Younger families in particular are buying up local acreages in order to practise sustainable farming, which is a fast-growing trend in our area.”
“Recreational sales activity has increased significantly on the Gulf Islands,” Royal LePage Nanaimo Realty sales agent Janet Moore added. “We have finally seen the return of buyers to smaller regions within the Gulf Islands, driven by both interest in recreational activities and retirement.”
The study came in the wake of similar findings by the annual Re/Max Recreational Property Report earlier this year. The latter also uncovered that demand for vacation properties has become more pronounced among younger buyers, with 73 per cent of agents surveyed stating that young families with children are among the primary buyers of this real estate type.
“A notable finding is that 21 per cent of Canadian homeowners would downsize their main residence in order to purchase a cottage, cabin or ski chalet,” Re/Max Western Canada regional executive vice-president Elton Ash said.
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