The Canadian recreational property market continues to rise, showing healthy price gains leading up to the 2019 spring market, rising 5.0 per cent to $411,471 compared to the previous year.
Furthermore, the latest data from Royal LePage is forecasting another year of solid gains (4.7 per cent) as high demand in Ontario and Quebec continue to put upward pressure on prices of recreational property, offsetting softer market conditions in British Columbia.
In most of the country, young families are competing with baby boomers for homes in popular recreational property regions, and now overseas property investors are also taking an interest.
Baby boomers are coming up to retirement and are competing with young families looking to create a special place for children to grow up. In Ontario and Quebec, this has resulted in exceptional demand and upward pressure on prices. In Western Canada, it has supported demand and stabilised prices.
Both Ontario and Alberta saw greater aggregate price increases than other provinces, rising 7.2 and 10.2 per cent, respectively. Alberta’s increase was largely due to an 11.4 per cent pickup in the larger market of Canmore, with mostly healthy single digit gains elsewhere in the province.
Royal LePage forecasts the aggregate price of a single-family home in recreational regions in Canada to increase by 4.7 per cent by spring 2020, rising from $411,471 to $429,714.
A more affordable option could be Atlantic Canada. Buyers looking to Atlantic Canada to purchase a recreational property can expect to find good selection this spring at affordable price points.
Over the past year, the aggregate price of a single-family home in reporting recreational regions rose 5.9 per cent to $257,965 compared to the year prior. Waterfront recreational properties in the region are among the most affordable in Canada, with the aggregate price for a waterfront single-family home sitting at $363,335.
Canadian recreational property could offer overseas property investors the opportunity for strong rental income, alongside the chance for memorable holidays.