Canada welcomes 16 million tourists a year, attracted by its beautiful natural environment, ski resorts, coasts, lakes and associated outdoor activities. Some of these visitors decide to make Canada a more permanent base, purchasing a second home in one of the country’s many leisure enclaves. Buyers from the US, Europe and Asia complement those Canadians who already own second homes in the country.

Case study: Nova Scotia

Nova Scotia is dubbed ‘Canada’s ocean playground’. Its climate is moderated by the Atlantic Ocean that surrounds it, and is known for its culture, scenery and coastline. Of the 184 golf courses in the Atlantic provinces in Canada, 40% are in Nova Scotia. In 2012 Nova Scotia was visited by 484,300 international tourists up by 7.9% on the year before, the largest increase of any Canadian province.

Nova Scotia’s residential market has seen much more stable prices than many of the country’s biggest cities. According to the Teranet / National Bank of Canada house price index, the average annual growth rate in Halifax over the last four years has been 3.2%, compared to 6.5% in Toronto, for example. This reflects an, as yet, more domestic and stable local market for housing, in contrast to the more well-known leisure resorts of major cities. Nova Scotia has the potential to become a major bolthole to the large east coast cities – of both the US and Canada – in the way that Whistler is to Vancouver on the west coast.

In the coming years a buoyant Nova Scotian economy will fuel wealth generation and new domestic second home buyers. Job creation will be boosted by a $25 billion government shipbuilding contract recently awarded to Halifax.

International buyers are also present. Americans are returning to the market as the US economy recovers, while Brits have remained a constant presence. Flight time from Halifax to London is less than six hours, making Nova Scotia one of the most accessible North American destinations for Europeans.

Case study: Whistler

Just 125 kilometres from Vancouver, Whistler played host to the 2010 Winter Olympics and is one of the world’s most exclusive ski resorts. It attracts tourists and second home purchasers from around the world. Annual snowfall of 11.9 metres ensures a long and reliable ski season and Whistler is widely recognised as one of the best ski resorts globally.

With a permanent population of just under 10,000 residents, Whistler has a large second home market. As with other discretionary purchases, Whistler’s residential market suffered during the global economic downturn. US buyers, historically a key purchaser group were put off by a strong Canadian dollar.

Highway improvements for the Winter Olympics made the resort more accessible from Vancouver. In turn, shorter stays became viable, and second homes less necessary.

In contrast to nearby Vancouver, prices in Whistler last peaked in 2008, falling by around 25% to a low in 2012. Values have begun to appreciate in the last year as Whistler positions itself as a year-round destination, and savvy buyers snap up the best product at discounted prices.

The majority of home buyers in Whistler are Canadian, many hailing from neighbouring Vancouver. At the very top tiers of the market, buyers from the US, Europe, Asia and Russia are also present.

Taken from
Spotlight: Canada Residential Market - Spring 2014