TORONTO AND KELOWNA, BC, June 25, 2014 /CNW/ - Today RE/MAX released its
annual Recreational Property Report, showing healthy activity across
much of the country and forecasts modest increases in sales and prices
through the rest of the year. With schools out and the coming Canada
Day long weekend marking the unofficial start of summer, national
recreational property sales and listings have rebounded from a slow
start caused by the late spring and cold winter experienced in many
markets throughout the country.
The full RE/MAX Recreational Property Report, with market activity
summaries for 41 regions across the country, is available here.
Videos summarizing markets in the Ontario and Atlantic Regions can be
found here, and summarizing Western Canada regions can be found here.
National Trends
While there are nuances and specific attractions that define local
markets across the country, a number of broad national trends have been
observed.
Buyer Profiles
Two groups of buyers are driving the majority of recreational property
sales in Canada. The first is made up of families with younger
children, who have built up equity in their primary residence and are
using that money to purchase a vacation property. The second group is
made up of near or recent retirees who have purchased a recreational
property with a plan to use it as a primary summer residence and
launching pad for winter travel.
Residential Spillover
Canada's hot residential real estate market in urban centres has had a
spillover effect on recreational property sales. This is particularly
true in markets within a two-hour drive of the country's large urban
centres, where price appreciation has allowed homeowners to use equity
gains in their primary residence to purchase a second home for
recreational use.
Evolving Use
The way buyers are using their recreational properties is changing.
While in the past, properties were largely used for weekend getaways
and a week or two of summer vacationing, today many are purchasing a
property from which they can work throughout the summer. Furthermore, a
majority now see their recreational property as a four-season vacation
option, rather than just a summer retreat.
CMHC Insurance Changes
While some potential recreational buyers may have been discouraged by
the Canada Mortgage and Housing Corporation's recent decision to
eliminate insurance on second mortgages, little to no material impact
has been witnessed from this change. There are many options available
for financing and insuring mortgages on a second property and an
experienced RE/MAX agent can help buyers find the option that best
meets their specific needs.
Ontario-Atlantic
Activity in recreational property markets across Ontario and Atlantic
Canada has picked up in May, following a sluggish April. The majority
of local brokers and agents across the region expect activity in their
markets to be on par or slightly above last year's numbers in terms of
both sales volume and price, as the negative effects of a late spring
are expected to melt away by the end of the season.
"Whether you're looking for a cottage in the Muskokas, a camp in
Sudbury, an ocean-side retreat in PEI, or a condo in Blue Mountain,
agents and brokers across Ontario and Eastern Canada have indicated
that there is great inventory that can meet almost any budget," said
Gurinder Sandu, Executive Vice President, RE/MAX INTEGRA
Ontario-Atlantic Canada Region.
The RE/MAX report looked at local market trends and prices and found
there are a number of affordable options available within a couple of
hours drive of most major urban centres across the eastern half of the
country.
Outside the Greater Toronto Area, an entry-level waterfront property in
Kawartha Lakes region starts at around $300,000. In Keswick, at the
south of Lake Simcoe, prices start at $350,000. Around the Muskoka and
Georgian Bay communities of Parry Sound, Huntsville, Bracebridge and
Gravenhurst, entry level cottages can be purchased for well under
$400,000.
In the Western Ontario communities of Grand Bend, Port Elgin and Sauble
Beach, recreational properties on sandy shores draw buyers from
communities such as London, Cambridge and Kitchener-Waterloo, as well
as municipalities in the west of the GTA such as Brampton and
Mississauga. Here entry level recreational properties can start at or
just above $200,000.
Prices start at $225,000 in Eastern Ontario where recreational
communities such as Renfrew, Dunrobin Shore and Constance Bay serve
Ottawa and surrounding area.
Atlantic Canada also has a good selection of properties helping meet
buyer demand. In the Shediac area of New Brunswick, just east of
Moncton, prices start at an affordable $110,000 and can climb to about
$400,000. In the south shore of Nova Scotia, prices start at $100,000
and can get as high as a $3.9 million listing currently on the market.
In PEI, prices for recreational properties start around $180,000 and
most properties sell for less than $300,000.
This year the entire region has also seen a number of sales occurring at
the upper-end of the market as well. Dozens of properties across the
region have sold for $1 million or more, including the most expensive
sale so far this year, a $7.35 million lakefront property in the Port
Carling/Bala region.
Western Canada
Recreational property markets across Western Canada are experiencing
healthy activity heading into the summer. Consumer confidence is high
and motivated buyers are seeking out their dream vacation homes, with
some markets reporting the most activity seen since the recession. A
weaker Canadian dollar has also prompted buyers to remain in Canada
rather than buying south of the border.
"We see momentum in recreational property sales, especially near urban
centres where local residents have experienced several years of
economic growth," said Elton Ash, Regional Executive Vice President,
RE/MAX of Western Canada. "This year we are seeing the effects of buyer
confidence in some regions thanks to built-up equity gains and strong
job markets across the West."
Recreational property markets in British Columbia saw renewed confidence
stemming from last year's modest price increases. This followed a
period where recreational property in some B.C. markets witnessed price
depreciation following the 2010 Olympics.
British Columbia's mild climate, culture and active lifestyle activities
continue to be a significant draw for potential buyers. Buyers are
attracted to areas such as Salt Spring Island and Shuswap, which are
known as rich cultural hubs with vibrant artistic communities and music
festivals. The Okanagan Valley, known for its internationally renowned
wineries, is also seeing an increase of buyers from Alberta with new
direct flights from Fort McMurray.
In Alberta, both Canmore and Sylvan Lake have remained popular with
affluent cottage buyers looking for four-season use of properties
located in close proximity to national parks and world class ski
hills. Demand in Canmore has led to limited inventory for three
bedroom single-family properties for less than $1 million. Current
typical buyers are comprised of professionals working as geologists,
engineers and executives in the oil industry. This is a new trend
building on the existing demographic of retiree buyers.
Strong house price appreciation in recent years has potential first-time
buyers in Winnipeg and Regina re-evaluating whether to buy a property
in the city or whether to extend their commute time and enjoy the best
of both the city and country. At a more accessible price point,
first-time buyers can chose a recreational property half way between
the beach and the office, allowing for more space and access to
activities that are not possible in the city. Similarly, those who
already own property in these urban centres are looking to leverage
built up equity for a second property that they can enjoy with friends
and family.
About the RE/MAX Network:
RE/MAX was founded in 1973 by Dave and Gail Liniger, with an innovative,
entrepreneurial culture affording its agents and franchisees the
flexibility to operate their businesses with great independence. Over
94,000 agents provide RE/MAX a global reach of more than 95 countries.
Nobody sells more real estate than RE/MAX.
RE/MAX, LLC, one of the world's leading franchisors of real estate
brokerage services, is a subsidiary of RE/MAX Holdings, Inc.
(NYSE:RMAX).
With a passion for the communities in which its agents live and work,
RE/MAX is proud to have raised more than $140 million for Children's
Miracle Network Hospitals®, Canadian Breast Cancer Foundation® and other deserving charities.
About INTEGRA Enterprises and RE/MAX Ontario-Atlantic
Canada
RE/MAX INTEGRA is privately owned by Canadian entrepreneurs and
represents nearly a third of all RE/MAX agents worldwide. The
Ontario-Atlantic Canada region is driving towards 10,000 quality
Associates. The US regions — New England and the Mid West (which
includes the following states: Minnesota, Wisconsin and Indiana) -
account for over 6,000 Associates, and Europe and the Middle East
account for more than 12,000 Associates.
For more information about RE/MAX, to search home listings or find an
agent in your community, please visit www.remax.ca
SOURCE RE/MAX Ontario-Atlantic Canada
Video with caption: "Video: Key findings for Ontario and Atlantic Canada markets from the 2014
RE/MAX Recreational Property Report.
". Video available at: http://rem.ax/1lNyFfV
Video with caption: "Video: Key findings for Western Canada markets from the 2014 RE/MAX
Recreational Property Report.
". Video available at: http://rem.ax/1lOV6TC
PDF available at: http://stream1.newswire.ca/media/2014/06/25/20140625_C8642_DOC_EN_41713.pdf
