It seems that the massive demand for Recreational type properties is slowing as the British Columbia markets approaches the Summer months. In a report provided by the CMHC on Friday June 27, 2008, market analysts predict that recreational type properties will likely follow the primary residence markets, and experience moderate price gains, more listings, and less overall activity.

This in the face of the ever changing Canadian Real Estate market has set many buyer and sellers questioning the long term viability of current real estate values.
"Recreational real estate is obviously a luxury purchase versus a basic necessity," Phil Soper, CEO of Royal LePage Real Estate Services, said in an interview.
"As such, when people's ... confidence in their ability to continue purchasing things like luxury properties wanes somewhat, they tend to put off [those] purchases."

While many predict a more stagnant recreational type property market in the years to come,
Soper noted that such Canadian markets have traditionally been "the most supply-constrained" of any market sub-components, which makes this year's rise in listings welcome compared to previous years.

When comparing these facts to B.C., especially Okanagan and surrounding Interior, new builders and development companies are reaching a critical oversupply value, according to a Canada Mortgage and Housing Corp. analyst in the region. Preliminary reports state that although the Okanagan / Interior has not surpassed this value yet, it will have to par back developments to ensure long term value," Paul Fabri of CMHC said in an interview.
It is important to note that demand for Vancouver Island and Interior recreational property is still very strong, Fabri added, however ever decreasing prices, and slash and sell marketing techniques in the US housing market has pulled many Canadians south of the border that may have previously considered Canadian products

Relative to previous year, as appreciation levels decrease, fewer and fewer Alberta buyers are making the transition in BC recreational properties. Slumping returns, and increasing oil and gas prices are some of the many concerns plaguing Alberta buyers. As the Canadian housing markets cools, primary owners are finding less equity and less leverage to secure second homes.

Riley Twyford, broker-owner of Royal LePage Downtown Realty in Vernon, said that demand and market sales have slumped nearly 28% when compared to the previous year. Although prices remain constant, the number of active buyers has decreased. Although prices are going backward, the market has significantly changed over the previous years.
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