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.
Click here to contact Vancouver's Real Estate Specialists
Click here to receive current Vancouver Listings
Click here to see Vancouver Area Neighborhoods

Read more on The Vancouver Real Estate Blog.com

Exceptionally renovated Commercial Street home located across from the tree lined streets of Woodland Park. Exquisite finishing & craftsmanship with flawless interior design. The main floor features 2 bedrooms and 1 bathroom through an effecient open floor plan design. Finishings include granite countertops, Jenn Air Stainless Steel, Appliances, Wide plank hardwood floors, crown moldings, and more. Enjoy sun drenched afternoons in your professionally landscapped yard or summer barbecues on your private patio. This Commercial area estate has it all. Read more on The Vancouver Real Estate Blog.com

Growing supply helps stabilize market conditions
VANCOUVER, B.C. - June 3, 2008 - The Greater Vancouver housing market continued its re-balance between sales and listings last month. The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver declined 30.7 per cent in May 2008 to 3,002 from the 4,331 sales recorded in May 2007.
New listings for detached, attached and apartment properties increased 20.2 per cent to 7,390 in May 2008 compared to May 2007, when 6,149 new units were listed.
"With more property listings and a decline in the number of sales, prices are not increasing as rapidly, now down to single digits overall, which is good news from an affordability standpoint," said REBGV president, Dave Watt. "The housing market is at a balanced state, sellers have more competition and buyers have more selection to choose from."
Sales of detached properties in May 2008 declined 33.4 per cent to 1,203 from the 1,805 sales recorded during the same period in 2007. The benchmark price, as calculated by the MLSLink Housing Price Index®, for detached properties rose 8.4 per cent from May 2007 to $771,250.
Sales of apartment properties declined 30.5 per cent last month to 1,244, compared to 1,789 sales in May 2007. The benchmark price of an apartment property increased 8.7 per cent from May 2007 to $389,668.
Attached property sales in May 2008 decreased 24.7 per cent to 555, compared with the 737 sales in May 2007. The benchmark price of an attached unit increased 9 per cent between May 2007 and 2008 to $478,931.
Bright spots in Greater Vancouver in May 2008 compared to May 2007:
Attached:
Coquitlam
up 45.2 per cent (45 units sold from 31)

Apartments:
New Westminster
up 13.6 per cent (100 units sold from 88)
The Real Estate industry is a key economic driver in British Columbia. In 2007, 38,050 homes changed hands in the Board's area generating $1.065 billion in spin-offs. Total dollar volume of residential sales set a new record at $22.25 billion and total dollar volume of all sales set a record at $22.77 billion. The Real Estate Board of Greater Vancouver is an association representing more than 9,500 REALTORS®. The Real Estate Board provides a variety of membership services, including the Multiple Listing Service®. For more information on real estate, statistics, and buying or selling a home, contact a local REALTOR® or visit www.realtylink.org.
*In August 2004, the Greater Vancouver and Fraser Valley boards upgraded our existing MLS systems to a common system called MLSLink. MLSLink® HPI is the latest version of the Board’s Housing Price Index (HPI) and is designed to accommodate the MLS upgrade and improve the legacy HPI product. For more information on real estate, statistics, and buying or selling a home, visit http://www.realtylink.org/.
Read more on The Vancouver Real Estate Blog.com