Royal LePage: Hot housing markets driving up recreational property costs
The heat of Canada’s two hottest housing markets is seeping into cottage country and other surrounding areas, according to a new report from Royal LePage.
The 2017 Royal LePage Canadian Recreational Housing Report, released Tuesday, revealed the competitive characteristics found in Toronto and Vancouver are making their way into recreational properties.
“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,” said Kevin Somers, chief operating officer at Royal LePage Real Estate Services Limited, in a release Tuesday.
The report showcases data compiled from respondents of a cross-country survey of recreation property specialists. Over half said they expect sales activity in their region to rise this year.
“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,” Somers 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.”
As of May, the average national price of recreational property in Canada was $439,000, with the highest prices seen in Alberta, driven by limited lakefront property availability, according to Royal LePage. The least expensive properties were found in New Brunswick.
The report also found foreign homebuyers aren’t impacting the Toronto and Vancouver markets, with over three-quarters of respondents saying foreign ownership makes up less than five cent the recreational homes purchases in their regions.