Cottage country prices forecast to soar
May 27, 2021
Canadians are increasingly looking to buy rural recreation properties, and average sale prices on these properties are likely to grow by as much as 25 per cent in the most contested markets, according to a new survey by Re/Max.
The survey found that around 21 per cent of Canadians are considering recreational properties after being priced out of urban markets. Roughly 22 per cent attributed their improved purchasing ability to the current low-rate environment.
Of those planning to buy recreational property in the next 12 months, around 60 per cent are first-time buyers of a recreational cottage or condo.
Approximately 57 per cent of the nation’s recreational markets include at least one property type in the $200,000 to $500,000 price range. An estimated 44 per cent of recreational real estate buyers are also setting aside this same sum over the next year or so.
“There’s intense competition among buyers in Canada’s recreational property markets and inventory is stretched thin,” said Christopher Alexander, chief strategy officer and executive vice president at RE/MAX of Ontario-Atlantic Canada. “But Canadians recognize that recreational properties remain an affordable option in such a turbulent market. There are still many recreational markets across Canada that are deemed affordable, despite the growing demand and rising prices.”
The few affordable recreational markets primarily featuring waterfront properties include Thunder Bay, Ontario ($425,805), Charlottetown, P.E.I. ($334,447), and Manitoba’s Interlake Region ($363,833).
For the remainder of 2021, sellers’ market-like conditions will most likely persist in 97 per cent of Canada’s recreational markets, RE/MAX said.