There’s been a surge in prices in Canada’s recreational property markets, according to a new report released on Thursday by real estate company RE/MAX.
The report said a survey of the company’s brokers and agents found that 78 per cent of the Canadian market has seen the median price increase in 2018 from 2017.
However, Sylvan Lake in Alberta experienced no change in prices as the median price for waterfront properties remained at $700,000 while non-waterfront properties stayed at $350,000.
RE/MAX said that the median price of recreational properties – including waterfront, non-waterfront, water access and ski-in properties – has increased by 13 per cent across Canada.
Median price information was calculated for the periods of July 2016 to June 2017 and July 2017 to June 2018.
Another survey in the spring found that 91 per cent of Canadian recreational property markets were being driven by retirees.
“Compared to 2017, when only 55 per cent of regions surveyed had retirees driving the market, this year’s 91 per cent are having a much bigger impact,” said Christopher Alexander, executive vice-president and regional director of RE/MAX INTEGRA Ontario-Atlantic Canada Region, in a statement. “Combined with the fact that Canada’s senior population is the largest it has ever been, and many of these retirees are using recreational properties as retirement properties, pricing has increased across the majority of markets.”
The RE/MAX survey of brokers and agents found:
- 24 per cent of Canadians would consider buying a recreational property in the future;
- the top reason for Canadians owning or wanting to own a recreational property (58 per cent) is because it is a place where they can go, relax and spend time with family and friends;
- 68 per cent of Canadians who own or are considering owning a recreation property are willing to travel up to two hours, with 31 per cent saying they would travel two hours, and 28 per cent are willing to travel three or more hours;
- Canadians identify the following features as important when considering their current recreational property or a future purchase of a recreational property: affordable purchase price, 64 per cent; waterfront access, 55 per cent; reasonable maintenance costs, 53 per cent; proximity to town, 43 per cent.
Respected business writer Mario Toneguzzi is a veteran Calgary-based journalist who worked for 35 years for the Calgary Herald in various capacities, including 12 years as a senior business writer.
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