TIFFANY CRAWFORD Updated: July 27, 2018
If you’re thinking about buying a summer cottage or place to retire by the sea in British Columbia, you may need to keep saving.
The cost of a recreational property in B.C. surged nearly 20 per cent in the past year, and in some of the more popular destinations, like Tofino, they went up more than 100 per cent.
That’s according to the 2018 Re/Max Recreational Report released Thursday. The report finds that the aging population has retirees driving and inflating the recreational market in popular leisure locations.
Overall, B.C. saw an increase of 19 per cent, with the median price in areas like Tofino on Vancouver Island increasing 112 per cent to $1.4 million for waterfront properties thanks to high demand and a low supply.
Inventory for all property types is low in the region, the report found, with 28 properties listed in Tofino and 63 in nearby Ucluelet. The cost of a non-waterfront property in Tofino increased 43 per cent to $1 million in Tofino and 33 per cent to $595,000 in Ucluelet.
The report says millennial buyers are moving their young families to the area as a lifestyle choice with the slightly older crowd looking more for second home and investment.
Sun Peaks, one of Canada’s largest ski areas, saw an increase of 34 per cent, which Re/Max says was thanks to schools and an increase in services attracting retirees and families.
Other popular destinations for recreational properties in B.C. include Salt Spring Island, where the median price of a waterfront property jumped 29 per cent to $590,000, and Whistler, where all property types went up 46 per cent to a median price of $790,000.
This Re/Max chart shows how the cost of a recreational property in popular destinations in B.C. jumped over the last year.
Overall in Canada, the median price for all recreational properties increased by 13 per cent compared with July 2017, according to Re/Max.
Christopher Alexander, executive vice-president of RE/MAX INTEGRA Ontario-Atlantic Canada Region, says Canada’s senior population is the largest it has ever been, and many of these retirees are using recreational properties as retirement properties, driving up prices in a majority of markets.