Collingwood ski properties have become hot purchases
Realty company predicts slopes are on track for a strong showing
Ski resort property can be some of the most vulnerable in a bad economy and that was certainly the case following the 2008 global economic crisis.
But some of Canada’s top cold-weather recreation centres, including Blue Mountain, have recovered and become hot performers on the property market, according to a report released Monday by Sotheby’s International Realty Canada.
The company predicts that the slopes about two hours north of Toronto are on track for a strong showing as Blue Mountain and Collingwood are increasingly viewed as a year-round resort area.
The number of properties selling for $1million-plus in the Blue Mountain area has more than doubled in the first 10 months of this year, compared to the same period last year — to 50 from 22 — said Sotheby’s Top-Tier Ski Real Estate Report.
Sales in the $500,000-to-$1-million price range also rose to 111 from 90 in the same period. Most buyers are from the Toronto area, and a few from Kitchener, said Blue Mountain-Collingwood broker Kevin Gilchrist.
Chalet searchers further south tend to go over the border to Ellicottville, south of Buffalo.
“We’re basically being fed by 30somethings, (people in their) 40s — because their kids are starting to ski,” he said.
The other market is retirees or baby boomers within about five years of retiring.
“They have the equity to do some creative financing and purchase property up here,” Gilchrist said.
Most are looking for detached homes or condos with plenty of sleeping accommodation.
The hottest properties have two living areas — one for the kids and one for the adults to entertain friends, he said.
Sales have also surged in the small but pricey super-luxury market, said the report.
In the history of Blue Mountain, only 11 properties have sold for more than $3 million. But of those, four sold this year — “a trend that is repositioning Blue Mountain luxury real estate into a whole new category,” said Sotheby’s.
Improvements in the resorts themselves have made the property prop- osition more favourable.
The report cites investments, including snowmaking equipment, in the six private ski clubs in the area, as well as highway improvements.
The sale this year of Intrawest Resorts Holdings’ Blue Mountain Ski Resort to Aspen Skiing Co. and KSL Capital Partners, “incited hopeful anticipation that there may be further amenities and real estate development,” said the report.
The Lora Bay development overlooking Georgian Bay and Craigleith at the bottom of Blue Mountain, have been particularly popular. Both are less than half an hour from Blue Mountain.
“The closer you get to Blue Mountain the higher the prices go,” said Gilchrist.
Ski-resort property is performing beyond Ontario’s hills, said Sotheby’s CEO Brad Henderson. Although Ca- nadian slopes and a low dollar are increasingly attracting international tourists, and there’s greater awareness abroad of areas such as Mont-Tremblant, it’s local demand that feeds these markets, he said.
“Our forecast is for this ski season to be one of the strongest in recent years for top-tier ski real estate,” said Henderson in a statement.