Recreational property markets across British Columbia and Alberta are experiencing a welcome return to stability, largely fueled by a resurgence in domestic buyers. This trend, highlighted by a recent Royal LePage report, indicates a growing preference among Canadians to invest in national vacation destinations over international ones, driven by a "Buy Canadian" sentiment and modest interest rate relief.
Key Takeaways
- Domestic buyers are increasingly prioritizing Canadian recreational properties.
- Markets like Big White, Whistler, and Canmore are seeing consistent demand.
- While foreign investment is slowly rising, Canadian purchasers remain dominant.
- Short-term rental zoned properties are particularly attractive in markets like Canmore.
Domestic Demand Fuels Market Stability
Following a period of turbulence, real estate agents in key recreational hubs such as Kelowna/Big White, Whistler, and Canmore report a noticeable increase in inquiries from Canadian buyers. Phil Soper, president and CEO of Royal LePage, noted that "modest interest rate relief and a growing ‘Buy Canadian’ mindset helped reignite demand for slopeside chalets and mountain retreats." This shift is occurring even as some urban markets face economic uncertainty, underscoring the enduring appeal of Canada's recreational regions.
Regional Market Insights
In Big White, B.C., properties are primarily selling to residents of B.C., Alberta, and Ontario, with a recent uptick from U.S. states like Washington, Texas, and Florida. Joan Wolf of Sotheby's International Realty Canada observes that individuals who previously vacationed in Arizona or Florida are now opting for Canadian destinations or purchasing property locally. The market remains consistent, with condos being the most popular segment. Big White's exemption from the foreign buyer ban and convenient flight access to Kelowna contribute to its appeal.
Whistler, B.C., mirrors this trend, with approximately 90 percent of buyers between January and October being Canadian, predominantly from Whistler itself or Metro Vancouver. While American buyers are slowly increasing, they still represent a small fraction of the market. Stefanie Hostetter of Re/Max Sea to Sky Real Estate describes Whistler's market as "steady as she goes" over the past couple of years, with consistent prices and inventory.
Canmore, Alberta, despite being subject to the foreign buyer ban, is experiencing strong demand, particularly for short-term rental zoned properties. Devin Stephens of Canmore Real Estate Group highlights that these properties are generating significant annual revenue for well-located and well-managed units. The demand is overwhelmingly Canadian, driven by a desire for lifestyle and a property that can help offset costs, rather than speculative investment.
Outlook for Recreational Properties
The return of domestic purchasers signals a stabilizing force in Canada's recreational property markets. The combination of lifestyle appeal, investment potential, and a growing preference for domestic travel and ownership suggests a positive outlook for these sought-after regions.
