Canada’s two hottest housing markets are having on impact on outlying recreational property markets, according to a new report.
The majority of Canada’s recreational property markets enjoyed year-over-year price and sales volume increases, according to Royal LePage’s Canadian Recreational Housing Report, released Tuesday.
“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,” Kevin Somers, COO, Royal LePage Real Estate Services Limited, said. “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.”
The report, which compiles information from Canada’s recreational property specialists, found 63% of participants said prices jumped year-over-year in May.
Over that same time period, 58% said sales volumes increased year-over-year; 54% noted drops in inventory levels, which has put price pressure on areas in British Columbia, Ontario, and Quebec.
Meanwhile, residential property markets in oil country have fared better than their residential markets, in many cases.
“Unlike many other oil producing provinces, where home values have remained constrained, in part due to the impact of commodity prices, recreational properties near Calgary and Edmonton have held their value remarkably well in the face of the recent economic downturn, especially when compared to other market segments,” said Somers. “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. 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.”
The aggregate price for recreational properties in Canada was $439,000 but prices varied widely from province to province.
Alberta had the highest aggregate price ($816,700), followed by British Columbia ($595,100), Ontario ($413,000), Quebec ($318,700), Saskatchewan ($297,200), Nova Scotia
($260,700), Manitoba ($238,600), PEI ($225,500), Newfoundland ($191,700), and New Brunswick ($179,500).
“As seen in other home segments, price differences for recreational properties from region-to-region can vary quite remarkably,” said Somers. “What remains relatively consistent across the country is that demand within many recreational markets is very much alive, with communities seeing an emergence of new builds and homes designed for multi-season use. Buyers are seeking properties that allow them to maximize their time away from the bustle of the city, often with the plan of making the home a primary residence in the future.”
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