- Canmore leads the way with 10.2% price increase
- Prairies see softening in both prices and sales
- Prices in British Columbia to remain stable while sales continue to decline
The Royal LePage 2019 Recreational Housing Report indicates vacation homes in Canada saw healthy price gains going into the 2019 spring market, rising 5.0% to $411,471 compared to last year. As high demand in Ontario and Quebec continue to put upward pressure on prices, Royal LePage is predicting another year of increases (4.7%) offsetting softer market conditions in BC.
Weak demand in British Columbia (mirroring the residential market) and low inventory in Ontario were behind a decline in total Canadian recreational property sales (-8.3%).
Both Ontario and Alberta saw greater price increases than other provinces, rising 7.2% and 10.2%, respectively. Alberta’s increase was largely due to an 11.4% pickup in the larger market of Canmore, with mostly healthy single digit increases elsewhere in the province. The price of a vacation home in Alberta rose 10.2 % to $819,583.
A soft economy in both Saskatchewan and Manitoba has limited families’ ability to purchase vacation homes leading to a decrease in both sales and prices. The price for a single-family home decreased 6.3 per cent year-over-year to $194,147 and sales dipped 3.4% during the same period.
In most of Canada, young families are competing with baby boomers for properties in popular recreational areas. “With the youngest baby Boomers a decade away from retirement, and their older peers well on their way, we are seeing robust demand for cottage, cabin and chalet-style retirement properties,” said Phil Soper, president and CEO, Royal LePage.
“Young families have traditionally made up a significant portion of the demand for recreational property, as they look to create a special place for children to grow up,” Soper continued. “Today they find themselves having to compete with their parents for that spot on the water, with boomers leveraging the significant equity from their existing urban homes. In Ontario and Quebec, this has resulted in exceptional demand and upward pressure on prices. In Western Canada, it has supported demand and stabilized prices.”
Royal LePage forecasts the price of a single-family home in recreational regions in Canada to increase by 4.7% by spring 2020, rising from $411,471 to $429,714.
For further details you can view the Royal LePage National and Regional Recreational Price Chart here.