03 Apr Canada’s hot recreational property market
Canada’s hot recreational property market is set to keep sizzling through 2022
Despite a return to international travel, demand remains strong in many recreational regions across the country.
Canada’s hot recreational property market is experiencing strong demand for cottages, properties in close proximity to lakes and mountains and continues to outpace supply. According to the Royal LePage 2022 Spring Recreational Property Report, the aggregate price of a single-family home in Canada’s recreational market is forecast to increase by 13% in 2022, to $640,710. This is following a 26.6% year-over-year increase in prices last year.
Even taking into account reduced pandemic-related restrictions, including a return to international travel, and the potential for a series of interest rate hikes over the course of the next two years, experts in recreational regions say the spring market is already off to a competitive start. According to the report, 84% of recreational property experts report lower inventory than last year in their respective regions.
“The factors challenging Canada’s residential real estate market – chronic low supply and growing demand – are amplified in the recreational property segment,” said Phil Soper, president and CEO, Royal LePage. “Demand for recreational properties continues to vastly outstrip inventory in many cottage regions across the country. Waterfront and mountain-top locations near cities are limited by nature, even in a vast land like Canada, forcing buyers into multiple-offer scenarios. Even more than in urban regions, it is vital that buyers and sellers employ the services of a local agent who has recreational market expertise.”
Highlights from the national release:
- Nationally, the aggregate price of a single-family waterfront property surged 21.5% year-over-year in 2021.
- Single-family homes in Ontario’s recreational property market recorded the highest year-over-year aggregate price appreciation in 2021, rising 34.6%.
- Quebec and Atlantic Canada are expected to see the highest recreational property price gains in 2022, rising 15%; single-family recreational homes in Ontario and British Columbia are forecast to increase by 13% and 12%, respectively.
For more information and regional insights, read the complete Royal LePage 2022 Spring Recreational Property Report.
Are you interested in purchasing a recreational or waterfront property in North rural Kanata or in the surrounding communities? Give us a call, as experienced Ottawa and Kanata REALTORS® we’d be pleased to help you!