A cabin at the lake, chalet on the slopes or a cottage in the woods?

With the stock markets still wavering and mortgage rates plunging to new lows, Albertans are sinking millions of dollars into vacation property at hot spots across the province and in nearby B.C. communities.

Be it an investment in the future, a source of rental revenue or simply a second place to call home, vacation real estate is sizzling as financially secure Albertans – and those across the country and abroad – snap up sought-after real estate at the province’s mountains, lakes and golf courses.

“We’ve seen property values jump in the 10- to 20-per-cent range in the past year. It’s been just incredible,” says realtor Brad Hawker of Royal LePage in Canmore, where demand is far outstripping supply.

Travel Alberta photo
The lifestyle at places such as Sylvan Lake Marina, above, and low interest rates are luring investors.

Last week in the Rocky Mountain town, 158 properties were listed for sale ranging from $220,000 to about $600,000. Two years earlier, about 330 homes were on the block. “I’d say it’s a seller’s market right now,” says Hawker.

Realtors say other hot vacation properties include Pigeon Lake south of Edmonton, Sylvan west of Red Deer and B.C. alpine resorts such as Kicking Horse at Golden, Panorama at Invermere and Fernie west of Pincher Creek.

Hawker notes many buyers are seeking a more reliable and profitable haven for their money and are turning to real estate instead of traditional investments such as RRSPs and equity markets.

The tech-stock plunge two years ago along with corporate accounting scandals and the terrorist attacks in 2001 have all helped push the industry to a record pace.

A recent national market analysis by Royal LePage indicates tight market conditions are driving recreational property prices upward. The Recreational Property Report 2003 reveals that six per cent of Canadians say they will likely purchase a cottage/vacation home in the next three years.

Just over 15 per cent of those surveyed said they plan to sell their property within two or three years.

“People have decided that investing in real estate is not a bad thing,” says realtor Jim Jardine of Re/Max in Sylvan Lake, where a lakefront lot now commands $300,000 to $400,000.

“The market’s good, and we have been busy.”

In 2001, the federal census pegged the community as the second fastest-growing town in Canada with a growth rate of 44.5 per cent between 1996 and 2001.

Sylvan Lake also racked up record building statistics last year, totalling more than $41 million. Jardine says prices are up about five to seven per cent over last summer, and supply is limited as new developments await government approval. Prices are more affordable and property more available at nearby Gull Lake, northwest of Red Deer, he notes.

Demand is also outpacing supply at Kicking Horse Mountain Resort at Golden, B.C., 220 kilometres west of Calgary.

The ski resort opened nearly four years ago to international acclaim, despite having no on-hill accommodations. Now, the $200-million resort boasts a residential community called Purcell Woods and the Whispering Pines luxury townhome complex.

Five real estate developments have been announced this year, the most recent a partnership with Calgary home builder Cardel Homes that will see construction of the 56-unit Glacier Lodge, the first ski-in, ski-out condominium complex at the resort.

Other projects in the works at Kicking Horse include: n The Cache Residences, a 19-lot neighbourhood featuring lots from $229,000 to $499,000. Construction to begin in spring 2004.

n Copper Horse Lodge, a 10,000-sq.-ft. lodge with 10 guest rooms and future plans for a spa. Built by a group of local investors, it is slated to open in late 2004.

* Highland Lodge, a 12-room stone-and-timber lodge based on a Scottish theme that will boast a mini-pub with deck and stone patio, a mini-Ceilidh (ballroom) for weddings and a corporate meeting suite. Privately built by a Scottish couple, it is due to open for winter 2003-04.

* Vagabond Lodge, a premium pension-style facility of up to 10,000 square feet with 10 rental suites, a dining room, library, games room, outdoor hot tub and lounge area.

The privately owned lodge is scheduled to open late this year.

“Construction is under way on three properties right now,” says Kicking Horse spokesperson Gord Vizzutti.

“Things are unfolding pretty much as anticipated. Our long-term vision is for a high-end resort experience – not a mega-project.”

Vizzutti says homes at the resort are being sold within a matter of hours of being put on the market, and property values have leapt by more than 30 per cent. Buyers are primarily baby-boomer investors from the United Kingdom and the U.S., as well as well-off Alberta families seeking a weekend retreat.

Vizzutti says many investors are attracted by the fact the mountain resort – the first to be built in the Canadian Rockies in 25 years – is still relatively affordable compared to more developed areas such as Whistler, B.C.

Development plans include four new chairlifts and expansion to the skiing, hiking and mountain-biking terrain.

Nature lovers and recreationists are also clamouring for property at Panorama Mountain Village, 290 kilometres west of Calgary at Invermere, B.C.

Along with downhill and cross-country ski activities, the resort has in recent years bolstered its summer presence with the acclaimed Greywolf Golf Course, summer day camps for kids and development of new mountain- biking facilities.

“There’s lots on the go at Panorama,” says Dave Bauman, marketing specialist with Playground, the marketing division of Vancouver-based resort operator Intrawest Corporation.

Bauman says prices are rising steadily, with a single-family lot commanding $220,000 to $400,000 compared to about $115,000 to $150,000 three years ago. The area is popular with American and U.K. investors as well as Albertans.

“People really are looking for a high-end second home – not just a cottage in the woods,” he says, pointing to a trend toward high-end home finishings such as granite and timber.

The resort’s newest slopeside accommodation, the 35-suite, boutique-style 1000 Peaks Lodge, opened this spring. Work is under way on the adjacent 1000 Peaks Summit, a condo-hotel that will surround a landscaped courtyard and feature a skating park in winter. It will be the last new development in the heart of the village.

As well, an announcement will be made soon about eight new lots to be opened up along the golf course, says Bauman.