Today, Royal LePage released their 2016 Canadian Recreational Housing Report, which outlines current statistics and trends in regards to the investment and recreational property market for this year. The biggest (and most notable) driving factors for recreational properties this year are Generation X (36 to 51-years old) buyers and the need to accommodate desired lifestyles.
“Canada’s extended low interest rate environment has clearly provided buyers with the confidence they need to invest in a cottage or cabin. In contrast to urban home purchase decisions, buying a property on a lakefront or mountainside is much less about interest rates, and more about enhancing lifestyle. Cash savings trump mortgage financing when it comes to how people are acquiring recreational property."
According to the RLP report, here's some notable figures:
- Generation X recreation property buyers outnumber baby boomers by two to one
- Planning for retirement still one of the most common reasons to buy a recreational property (65 per cent)
- 88 per cent identify desired lifestyle and vacationing as their main reason for buying a recreation property
- 49 per cent want a recreational property as an investment
- 37 per cent indicated low interest rates as a deciding factor
- Average recreational property buyer is a married couple with children
Across the country, roughly two-thirds (67 per cent) of those polled said they have seen increases in sales over the past 12 months, and over half (53 per cent) expect sales activity in 2016 to exceed 2015 levels. In Alberta, sentiments were somewhat mixed, with advisors generally expecting continued softness in both price and sales activity in the coming year.
To read the full report, see here. For questions on investment or recreational properties, feel free to contact us.