International Hot Markets: The Canadian Maritimes

Despite a slowing in the rate of price increases of oceanfront vacation homes in the U.S., more Americans each year are turning north and east to the Canadian Maritimes seeking the perfect vacation retreat. The three Provinces that make up the Maritimes of eastern Canada offer hundreds of miles of coastline and what may be the most affordable of the Atlantic coastal properties.

If you have clients who are selling their homes in the U.S. and are looking for vacation or retirement spots along the Atlantic Seaboard, you may want to develope working relationships through referral to real estate professionals in any of the extraordinary Provinces in Maritime Canada. As a means of explaining the growing allure of this area to buyers from the U.S. and the European Union, here’s an overview of what’s happening north of the U.S.- Canadian border.

Past objections about the Maritimes being too cold, too distant or too isolated have almost vanished, as prices for U.S. coastal property rose steeply during the past housing boom. Now they are drawing buyers from as far away as Texas, California and Florida.

Ornate Victorian era homes, quaint oceanfront summer cottages, and dramatic oceanfront property are still available at comparatively reasonable cost in many coastal communities in New Brunswick, Prince Edward Island and Nova Scotia.

If you are driving to points in the Maritimes from major east coast cities, you are in for a long drive. This has not deterred intrepid individuals and families from making the trek. Why? Because there is beauty, tranquility and friendliness waiting at the other end. But the clincher, for many who have sought and found their dream spots on the water in Prince Edward Island, New Brunswick or Nova Scotia is the price. It’s simply no contest between the price/value equation of property and vacation homes on the east coast of the U.S. versus any of the Maritime Provinces.

While some areas are more desirable and pricey than others in eastern Canada, the price differences between comparable properties in the U.S. and Canada are striking. This holds true despite the recent fall in the value of the U.S. dollar to the Canadian dollar (for the first time in 30 years, the Canadian dollar is trading higher than the U.S. dollar).

The variety of waterfront property found in the Maritimes is extraordinary. New Brunswick coastline fronts on the Bay of Fundy, known for the highest tides in the world (over 40 feet at peak tidal periods). These high tides have carved the rocky coastline in dramatic ways, the effect and beauty of this tidal action is heightened in some areas by areas of red rock outcroppings along the coastline. New Brunswick, while less well known than the other Maritime Provinces, has an advantage over the others, from the perspective of U.S. buyers.

It’s closer. Yet closer is a relative term. The nearest point in New Brunswick is still almost 800 miles north of New York City. While this is a long drive, it is no longer than many northeasterners drive to reach the Carolinas. And the drive north unlike heading south, is devoid of the major urban centers and traffic jams that often occur on the east coast corridor.

There are great properties available for reasonable prices along the New Brunswick shore, including the following property, which consists of 200 acres on the Northumberland Strait (http://www.hawkins.nb.ca/L05-95.htm). It has stunning water views, and includes sandy beaches and dunes. It also includes an abandoned homestead with barns. It’s offered for $559,000 (CDN) by Broker John Coates, of Hawkins Realty, Ltd. Of Fredericton (http://www.hawkins.nb.ca). The Northumberland Strait separates New Brunswick and Prince Edward Island, and offers some of the warmest ocean waters north of the Carolinas (up to 75 degrees in August versus 64 degrees in coastal Maine).

On the far side of the Bay of Fundy from the New Brunswick shore is the western shore of the large peninsula of Nova Scotia, which is referred to as Canada’s Atlantic playground. Lovely coastal port towns and small cities feature a high proportion of older New England-style houses. Many Victorian era homes dot its western shore, in the towns of Lunenburg and Truro, and many others.

The southern tip of Nova Scotia offers high-speed car ferry connections with points in Maine. From this point, one can choose to travel up the eastern, Atlantic Coast, or the western, Bay of Fundy coast. In either direction you’ll find villages and towns with great waterfront properties, old-fashioned hospitality and a wide range of housing stock, from 19th century in-town homes, outlying farmsteads to waterfront and water-view open land. The size of the Province often surprises first-time visitors. The topography ranges from the rugged coast up into extensive inland agricultural areas and mountains and highlands of stunning beauty.

The eastern shore of the Province fronts on the open Atlantic. The winding coastline features innumerable coves and bays, fishing villages and rocky headlands that offer spectacular views of the Atlantic Ocean. Halifax, a thriving, cosmopolitan city, sits on one of the best natural harbors in the world. It is known, among many other distinctions, as being the final resting place of the unidentified remains from the Titanic disaster. An active market for high-end condominiums draws U.S. buyers looking to enjoy this friendly hip, dynamic port city with its dramatic waterfront that is only minutes away from coastal villages that are a throwback to the 19th century.

David Callan, of MacKay Realty (http://www.mackayrealestate.com) in Lower Wolfville, Nova Scotia, has listings that exemplify the proposition that waterfront homes in Nova Scotia are available at what would be viewed as extremely reasonable by many U.S. buyers. Here’s an example: An oceanfront compound in picture perfect condition located in Belliveau Cove, with a large lot and priced at $595,000 (CDN).(http://www.wolfvillerealestate.com/147index.html) Another listing, located in Harbourville on the Bay of Fundy, offers a great house with attached studio, broad decks with harbor views, a forty foot wharf and comes with three boats included, for $259,500 (CDN): http://www.wolfvillerealestate.com/2593index.html While there are some buyers form the U.S., David observes that many more of his foreign business comes from the U.K., based in part of the strength of the British pound.

Prince Edward Island, (also known as PEI), is 140 miles long and located in the deep blue waters of the Gulf of St. Lawrence. It can be reached via the Confederation Bridge, an eight-mile span that crosses the Northumberland Strait from northern New Brunswick. Known as the Garden of the Gulf, it’s an island jewel that is the smallest of Canada’s Provinces in both land area and population (except for the sparsely populated northern territories). The coastline of the island consists of a combination of long red and white sand beaches, dunes, red sandstone cliffs, salt water marshes and numerous bays and harbors.

The island has a large tourist economy, along with a fishing industry and a significant agricultural sector. Still largely rural, the island offers expansive views along the coast out over red-soiled wheat and potato fields that extend down to azure blue shores, with red sandstone beaches and headlands. Numerous lighthouses protect ships plying the rocky perimeter of the island. Altogether, PEI is almost a picture-perfect getaway.

Here are a couple of examples of great oceanfront homes in PEI. Nicolle Morrison, a broker with Century 21 Northumberland in Summerside, PEI, offers a unique home on over three acres, with 800 feet of oceanfront. This 1,900 square foot, three bedroom, two bath home incorporates an old lighthouse. It’s on the market for $349,000 (CDN). (http://www.mls.ca//propertyDetails.aspx?propertyid=5739402). Here’s another oceanfront property in Hampton, PEI. The original home was built in 1819. It’s a spacious ‘heritage home’ that consists of 3168 square feet, with five bedrooms, and two baths on 3.85 acres with 249 feet of ocean frontage. It being offered at $349,000 (CDN). (http://www.mls.ca/PropertyDetails.aspx?PropertyID=6118992). It is represented by Jacqueline McKeeman, of Royal LePage Peters & Lank Realty, in Charlottetown (http://www.lank.com).

The three Maritime Provinces present opportunities for vacation homeownership, investment, and for baby boomers seeking great places in which to spend some of their post-retirement years. To the extent that you have clients who fit any of these profiles, there are opportunities for helpful and profitable cross-border relationships that you can forge to take advantage of the rapidly shifting U.S. demographics combined with the reasonably-priced properties to be found in Eastern Canada. View more properties like the ones mentioned here at the nationwide MLS for Canadian properties, http://www.mls.ca. Who knows, with the Canadian dollar’s growing strength against the U.S. dollar, you might find some Canadian prospects by referral from north-of-the-border pros that might be seeking a great property in the U.S. for their vacations, investment or retirement? Nothing ventured, nothing gained.

This article was originally published in the Winter 2007 issue of 2ndhome® Specialist, a digital magazine for real estate professionals specializing in the second home and resort markets.