January 22, 2008

Victoria, BC – It’s a real (estate) interesting paradox.

The subprime mortgage crisis in the US and the weakening US economy means more, rather than fewer, opportunities for the real estate marketing team at Bear Mountain Resort, near Victoria, BC.

That's because their target demographic generally isn't affected by the subprime crisis, and that demographic never stops looking for real estate opportunities. Dale Sproule, Bear Mountain's director of real estate, says they have just opened an Arizona office to take advantage of the many US purchasers who are increasing their Canadian holdings, including resort-style real estate that Bear Mountain offers.

"The US market is slumping, but that has meant opportunities for us. We have found that many alert real estate buyers are bullish on Canada, especially the West Coast. Victoria, with its solid economic fundamentals, strong real estate market, and superb West Coast amenities, looks very good to a certain type of American buyer. Even with the two currencies nearly at par, they see value in Canada," says Sproule. "I just had a call from a client in Texas who bought property at Bear Mountain a couple of years ago. He thanked me for convincing him to buy at Bear: he told me it's the best real estate investment he’s ever made. We're also seeing interest from International clients who have no intention of buying US real estate because they have no idea at what price point that market might bottom out. These are markets to be explored, so we're jumping in."

With condominiums, townhomes, fractional ownership and single family home sites offered, Sproule notes that both local buyers and purchasers from across Canada and the US are coming to Bear Mountain Resort because, as the resort and village continue to grow and take shape, they want to live there full-time or spend large chunks of time there. "It’s always been about the golf and resort-style amenities, but now the village is becoming what we envisioned. We have the trolley system, an art gallery, insurance company, hair salon, a furniture store opening a month from now, athletic club, restaurants, coffee shop. We’re seeing more and more purchasers that want to live here and take advantage of the amenities, rather than speculators. We see purchasers who live in and enjoy the resort atmosphere, go to their jobs in Victoria or the West Shore by day, and then come home at night to the mountain."

Sproule notes that their type of purchaser responds especially well to web-based marketing techniques that Bear Mountain Resort was one of the first major West Coast developments to use. “We have always been at the leading edge of real estate marketing. We were among the first to recognize the strength of Alberta purchasers and market aggressively in that province. We were among the first to use streaming video on the web that allows purchasers to actually see what the interiors and views from a particular property would look like. As our development has progressed, so has our web presence, and it’s really our primary marketing tool for our target markets."

Sproule notes that sophisticated web site tracking provides immediate analysis of advertising campaigns. In 2008, Bear Mountain's online marketing program will continue to break new ground by tapping into new web sites and resources that shed light on far-away international markets. He notes that plans include opening a presentation office in London. "The UK is the third highest source of traffic to our web site. We have been working hard to mine UK leads over the past few years, participating in UK tradeshows and talking about our real estate product face to face with purchasers.

Focusing on the US, the UK and tapping into new international markets doesn’t mean they're ignoring traditional Canadian markets and buyers. "We are staying true to our core markets of BC and Alberta, but we are also going further afield, which means more targeted marketing campaigns in eastern Canada, especially Toronto," says Kerri Moore, Bear Mountain’s director of marketing. "We will open a presentation office in Vancouver this spring."

The West Coast real estate market, even with prices still rising, has changed from a couple of years ago. Back then, many new condominium projects sold out on first day of release. Now, some single-phase developments aren’t generating enough pre-sales to go ahead, partly because those developers can’t afford marketing dollars to generate enough sales to make those projects go ahead. Not so at Bear Mountain, which will be marketed nationally and internationally for the next decade.

Here, purchasers benefit from the ongoing and evolving marketing efforts of Bear Mountain as a full-service, all-season resort with a major hotel, two high-end golf courses, and a resort-style community, with food and retail services," says Moore. Bear Mountain has had to react to the changing market too, and is leaving no stone unturned in their outreach to purchasers, she says.

The lower end of the price range at Bear Mountain is still affordable for young and first-time purchasers, Moore notes, with a limited number condominiums still available for under $299,000.