Expect vacation home prices to climb this year in some of B.C.’s most scenic spots.
That’s according to Royal LePage’s spring report, which says the Bank of Canada’s cuts to the overnight rate the past several months has led to a gradual increase in demand for recreational homes in the province.
"The B.C. market has struggled to recover from the post-pandemic boom compared to Alberta, Quebec and Atlantic Canada” Anne-Elise Cugliari Allegritti, director of research and communications at the real estate firm, told Western Investor.
She said sales were down in B.C. and demand took longer to pick up in 2024 compared with this year.
The March 26 report found the median price of a single-family home last year in B.C.’s recreational property market jumped one per cent annually to $933,100. Royal LePage notes the median price of a single-family waterfront property decreased 8.3 per cent to $2,078,700, while the median price of a standard condominium increased 2.3 per cent to $425,200.
The report projects the median price of a single-family home in British Columbia’s recreational regions is forecast to increase two per cent this year to $951,762.
British Columbians appear hesitant when it comes to investing in waterfront properties in the Okanagan due to additional taxes for the region, according to the report.
“In British Columbia, properties left vacant for more than six months in a year are subject to additional taxation – an added expense that many part-time recreational users are unwilling to take on,” said a statement from Francis Braam, managing broker for Royal LePage Kelowna.
“Additionally, with restrictions on short-term rentals in the region, property owners no longer have the ability to lease their homes to offset costs, further limiting investor interest.”
Even amidst a slow but rather pricey market, the report highlights that Whistler continues to be a much sought-after destination.
“Most buyers continue to come from British Columbia’s Lower Mainland, searching for year-round vacation properties – specifically in Whistler, a region that is world-renowned for its ski mountain ranges,” said a statement from Frank Ingham, an associate broker with Royal LePage Sussex in nearby Pemberton.
“Unlike other parts of the province, Whistler is not subject to British Columbia’s speculation tax, meaning investors are not discouraged from entering the market.”
