Earlier this week, Royal LePage released their 2017 Canadian Recreational Housing Report, which outlines current statistics and trends in regards to the investment and recreational property market for this year. Among the most notable, was that Alberta recreation properties are recovering in sales, thanks the the continuously improving economy.
“Market conditions are favourable to buyers in the province’s recreational property segment, with prices having declined or remained flat for the last couple years during the economic slowdown,” said John Hripko, sales representative, Royal LePage Benchmark. “Buyers are currently recognizing that they’re in the midst of a very opportune time, cashing in on depressed property values while they can.
“There is a transition happening,” continued Hripko. “With the economy improving, and consumer confidence strengthening across the province, we expect to see an upswing in demand for discretionary purchases like recreational properties in the near term, which will ultimately put upward pressure on prices.” [Royal LePage]
Alberta actually recorded the highest provincial aggregate price in all of Canada, at $816,700. On average, recreation property buyers are willing to drive between two to four hours to find the ideal property. Major factors driving the sale of recreation properties for Albertans include desired lifestyle and vacationing.
The top trends for vacation properties in Alberta are:
- Canmore: average price for riverside is $2,750,000. With its close proximity to Calgary and the presence of the Rocky Mountains, it's increasingly becoming an ideal choice for many who want both winter and summer vacation options.
- Pigeon Lake: this is one of Alberta's most affordable recreation markets, with the average lakefront price being $450,000.
- Sylvan Lake: inventory in this area is coming back on the market and prices are still sitting lower so it's a good opportunity to buy in Sylvan Lake. Average lakefront is $1,000,000.
“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 stay in place for the remainder of the year, as warmer weather continues to heat up the market, constraining inventory levels across the country.” [Royal LePage]
To read the full report on recreation properties in Canada, see here.