Most recreational home markets have posted gains in both sales and prices in 2017 compared to last year, but there are some regional variations.
Royal Le Page’s Canadian Recreational Housing Report is out today and reveals that the heat of Greater Vancouver and Greater Toronto housing markets are spreading into those provinces’ recreational markets.
Nationwide, 63 per cent of advisors say that prices have jumped year-over-year while 58 per cent say there has been a sales volume rise in their area and 54 per cent say inventory levels have dropped.
"The Canadian recreational property market had a resounding start to the year, with the majority of markets nationwide witnessing healthy increases in both sales activity and pricing," said Kevin Somers, Chief Operating Officer, Royal LePage Real Estate Services Limited. "Looking ahead, we expect this trend to continue for the remainder of the year, as warmer weather heats the market, constraining inventory levels across the country."
Oil-producing provinces are showing some downward pressure but Calgary and Edmonton are bucking that trend.
"With a significant lack of recreational property stock around the province's largest metropolitan areas, even an average amount of demand for waterfront property has managed to buoy pricing within the region,” said Somers. “As consumer confidence continues to rise, and more Albertans elect to look for recreational properties inside of the province, this trend may very well intensify, creating a sellers' market in certain regions."
As of May 2017, the national aggregate price of a recreational property in Canada was $439,000 but New Brunswick was the cheapest market at $179,500 while Alberta, at the most expensive, had a provincial aggregate price of $816,700.
Meanwhile, in Ontario and BC, Somers says the recreational market is mirroring that of the broader market.
"The radiating heat of the Greater Toronto Area and Greater Vancouver real estate markets has been flowing beyond the boundaries of the suburbs and nearby cities, to reach what have traditionally been recreational regions," Somers explained. "Many cottage communities in Ontario and B.C. have seen unprecedented levels of sales activity and property price increases, driven largely by Toronto and Vancouver city-dwellers leveraging their home equity to purchase a recreational sanctuary – often with immediate or future retirement in mind.”
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