The Tofino and Ucluelet cottage markets are currently balanced, with prices and number of sales expected to hold steady throughout 2023. The majority of buyers in this market are local, primarily from Vancouver Island and the Lower Mainland; with families, young and middle-aged couples, and retirees being the top buyer demographics.
The average pricein the Ucluelet cottage market increased by 11 per cent year-over-year (from $682,000 in Q1 2022 to $$764,000 in Q1 2023). Average number of transactions decreased by 46 per cent year-over-year (from 512 in Q1 2022 to 309 in Q1 2023). It’s worth noting that there have been no sales in Tofino for the same period due to a lack of inventory. With a slow start to the year, particularly in Tofino, prices and sales are both expected to remain the same throughout the rest of 2023.
While the Foreign Buyers Ban and the recession have been hot-button issues in other provinces, they’re having a lesser impact in Tofino and Ucluelet. Most buyers in the region are financially sound and affluent, but real estate agents and brokers are seeing more financing than in years past.
Over the next several years, approximately 900,000 Canadian Baby Boomers are expected to retire, and major shifts in intergenerational transfer of wealth are predicted. For families seeking to transfer properties from one generation to the next, it’s important to have a clear agreement outlining who is responsible for ongoing costs, whether costs are shared, and more. Oftentimes, those who are investing in the property do not want to participate in ongoing costs – especially if they have a fixed retirement income.
“We’re seeing an increase in Baby Boomers buying and investing in vacation homes, especially if these properties can also be rented nightly. Another key priority for this demographic is if they have young families in this community. They’re purchasing recreational homes, so they have a place to spend time with their grandchildren when they come visit,” says Judy Gray, Owner, RE/MAX Mid-Island Realty (Ucluelet).
