4/30/2024
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Posted in Recreational Properties by Vanguard Realty | Back to Main Blog Page
Canada’s recreational property market hasn’t seen an influx of listings and is unlikely to at all this year, according to Re/Max Canada’s 2024 Cottage Trends Report.
The country’s cottage owners (64 per cent) are holding on to their properties rather than selling, despite affordability issues and higher interest rates of late. The trend is likely influenced by the desirable quality of life and prospect of future returns that recreational property ownership offers.
This year, Re/Max expects an increase in recreational prices by 6.8 per cent, with number of sales to be up in over 60 per cent of regions analyzed by three per cent to 50 per cent.
“Years of research have shown that Canadians consistently see value in real estate ownership both as a necessity and an investment. Those who have already gained a foothold in the recreational property market are determined to hold on to this asset, despite mounting affordability concerns across the country,” says Christopher Alexander, president, Re/Max Canada.
“Even the change to the capital gains tax, which will take effect on June 25, won’t spark a widespread flood of new listings and sales by cottage owners trying to get in under the wire given the narrow window,” continues Alexander. “That said, RE/MAX brokers and agents in some regions have reported a recent uptick in listings that may be tied to the new change.”
Here are some further insights from the report.
Buyer priorities
When it comes to buying recreational properties, the report shows that half of Canadians prioritize affordability (46 per cent), followed by proximity to water (35 per cent) and necessary amenities (27 per cent).
Demographic shift
Families and young couples are becoming significant drivers of activity in 59 per cent of recreational markets across Canada, shifting from the historically dominant retiree demographic (in 91 per cent of markets analyzed in 2018).
Policy and regulation influences
To improve available housing supply, short-term rental bans have materialized in provinces, while others are looking into limiting allowances. Re/Max found that these restrictions have not caused most recreational property owners to sell. Just 29 per cent are looking to sell, because of the inability to generate anticipated rental income.
Source: Real Estate Magazine
Recreational Real Estate, Vacation Properties
