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Issue link: http://digital.canadawide.com/i/1119976
R E C R E AT I O N A L AC T I V I T Y B.C. vacation properties have seen an upswing in sales and prices over the past several years, Landcor Data Corp.'s research suggests JUNE 2019 BCBUSINESS 37 sales only, and that there was a dearth of those particular properties on the market the previous year.) But overall, according to Re/Max, the vacation home market is con- sidered favourable to sellers—despite the initial handwringing over the speculation and vacancy tax. The initial rollout of the tax was hardly textbook. The ensuing backlash eventually caused Finance Minister Carole James to rethink it and change course; today, the spec tax aƒects mainly urban areas where housing values have spiked, sparing most of the vacation property inventory from the additional levy. Still, there was the fear that buyers would avoid places where the tax was in force, choosing to look to other commu- nities outside of those zones. This didn't happen to any great degree, though. "The spec tax is probably hurting sales in some communities," concedes Brendon Ogmundson, deputy chief economist with the Vancouver-based British Columbia Real Estate Association. "But it doesn't seem to be making a huge diƒerence when you do community-to-community comparisons." To illustrate, Ogmundson cites two areas where the tax is diƒerentially applied. "Parksville-Qualicum, where there is no spec tax, is performing about the same as Nanaimo; in fact, Nanaimo sales are trending up a little bit, whereas Parksville- Qualicum is 'atlining." A similar situation exists in the Okanagan. In areas aƒected by the new tax, sales have dropped 32 percent. But in the southern Okanagan, where the tax isn't part of the equation, sales have fallen even more precipitously, by about 45 percent. There are several variables in play, from the downturning Alberta economy to a growing feeling that B.C.'s housing market is overpriced. But availability of credit may GRAPE EXPECTATIONS OSOYOOS POPULATION: 4,520 (2016 census) POPULATION DENSITY PER SQ. KM: 1,081.8 PRIVATE DWELLINGS: 2,855 (occupied by usual residents: 2,176) CLOSEST HOSPITAL: South Okanagan General Hospital in nearby Oliver CLOSEST INTERNATIONAL AIRPORT: Kelowna International COMMUTING TIME FROM DOWNTOWN VANCOUVER: 5 hours AVERAGE ASSESSED VALUE 2018, SINGLE FAMILY RESIDENTIAL: $382,000 AVERAGE ASSESSED VALUE 2019, SINGLE FAMILY RESIDENTIAL: $414,000 (+8%) WHAT $500,000 WOULD GET YOU THIS SPRING: Two-bedroom, 1,121-square-foot home next to a pond 382 277 309 233 272 309 311 415 475 473 488 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2008 $257,500 $270,000 $253,774 $253,500 $240,000 $275,000 $250,900 $275,000 $275,000 $300,000 $339,500 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2008 S A L E S M E D I A N S A L E P R I C E RIGHT: COURTESY OF LIDIA FERREIRA, RE/MAX REALTY SOLUTIONS; SOURCES: STATISTICS CANADA, BC ASSESSMENT BUY HERE IF… You like the idea of vineyards and rolling, semi-arid desert hills, and aren't deterred by the serial switchbacks on High- way 3, just east of Manning Park R E C R E A T I O N A L P R O P E R T Y G U I D E