TORONTO, November 28, 2018 –According to Royal LePage,
prices in many key winter recreational real estate markets are experiencing
healthy year-over-year price appreciation, as retirees, investors and buyers
looking for winter getaways continue to spur demand.
Across Canada, trends vary based on the region. In western
Canada, the median price of a condominium in winter recreational regions rose
at a faster pace compared to detached properties, while the median price for
the latter dipped. In particular, condominium prices in Whistler and
Mont-Tremblant (Station) increased 26.5 per cent and 30.0 per cent,
respectively. Condominium prices in Canmore also saw significant appreciation
when compared to last year, alongside a considerable increase in sales
activity.
Quebec’s strong economic performance and consumer confidence
have fueled demand for the region’s winter recreational properties as buyers
with more discretionary income from within the province put upward pressure on
recreational property prices. In Collingwood, Ontario, median prices have also
made healthy gains, as residents within Toronto and the Golden Horseshoe flock
to the region’s accessible year-round amenities.
“Canada boasts the world’s most spectacular winter
experiences. Across our vast land are recreational regions that offer
adventure, opportunities for creating priceless family memories and a simple
refuge from the hustle and bustle of city life,” said Phil Soper, president and
CEO, Royal LePage. “The number of buyers shopping for a four-season
recreational property, be they traveling a modest drive from the local
metropolis or a jet-setting trip across the pond, is again on the rise, and
recreational property values are rising as a result. This is particularly true in
the mountainside condominium market as more and more investors seek the
convenience of lock-and-leave living.”
Regional Summaries
Alberta
204 – 707 Spring Creek Drive, Canmore, Alberta,T1W 0K7 | Royal LePage Rocky Mountain Realty | $829,900 | Listing agents: Jim Ridley, Jordy Shepherd,
Jim Mamalis
In Canmore, which is situated a beautiful 20-minute drive
from Banff, the median price for a detached home dipped slightly by 1.1 per
cent year-over-year to $918,500. In contrast, the median price for a
condominium surged 9.6 per cent year-over-year to $472,000.
“We’ve seen more sales activity in the entry-level market
this year,” said Brad Hawker, broker and owner, Royal LePage Rocky Mountain
Realty. “While most buyers in Canmore are from within Canada, we have seen a
slight increase in international demand from the United States and Mainland
China.”
Hawker also mentioned that with limited land for future
development keeping values intact, it is likely that baby boomers and Gen Xers
will continue to purchase recreational retirement properties in the region.
British Columbia
In the Municipality of Whistler, home to Whistler and
Blackcomb Mountains, property prices in both the detached and condominium
segments have increased significantly. When compared to the same period last
year, the median price of a detached property home rose 14.5 per cent
year-over-year to $2,400,000, while the median price of a condominium increased
significantly, rising 26.5 per cent year-over-year to $610,000.
“More affordable properties are still seeing high demand,
despite a slowing in overall activity,” said Pat Kelly, president and owner,
Royal LePage Black Tusk. “The B.C. foreign buyer tax and speculation tax does
not apply to Whistler, and as such there has been no drop in interest from international buyers. That being said,
recreational properties in the area are primarily bought and sold by
individuals who are local to the province, while international buyers only
represent a small proportion of sales in Whistler. In 2019, we expect further
price appreciation, albeit at a slower pace than in previous years.”
Kelly added that growth in the tourism sector over the last
five years has fueled an increased demand for condominium properties, as many
buyers are searching for short-term income rental and investment properties.
Meanwhile in Invermere, sales activity has remained
relatively stable while the median price of a detached home has decreased
year-over-year to $401,250, increasing affordability in the region.
“Recreational properties in Invermere remain affordable and
we are seeing an increase of sales in lower-priced properties, which affect the
median home value,” said Barry Benson, broker and owner, Royal LePage Rockies
West. “Given the proximity of our market to Alberta, if we see economic gains
on the other side of our provincial border, it will likely spur consumer
confidence among prospective buyers and increase sales activity as we move into
2019.”
Benson added that the British Columbia wildfires also
impacted sales activity over the summer months. In 2019, Invermere is expected
to experience the same positive uptick in activity.
Detached homes in Kimberley made the largest median price
gain of regions surveyed as demand far outstriped supply. Potential buyers were
shopping with less than 40 per cent of the typical inventory level for the
region.
“While demand for detached homes in Kimberley is strong as
buyers continue to be attracted to the lifestyle offered in the region, median
price appreciation also reflects more expensive homes being sold,” said Darren
Close, managing broker, Royal LePage East Kootenay Realty. “Buyers looking for
a deal in the region should consider condominiums. Not only are they close in
proximity to the slopes, overbuilding in previous years has kept this housing
type affordable and offers excellent selection.”
Ontario
In Collingwood, median property prices continued to increase
in 2018. Detached property home prices rose 6.3 per cent year-over-year to
$549,900. Properties in the condominium segment experienced an uptick in value
as well, rising 5.4 per cent year-over-year to $407,700, demonstrating a steady
demand for recreational properties in the region.
“Torontonians, and those living west of the city in
Cambridge, Guelph and Kitchener-Waterloo, make up the largest buyer segment in
Collingwood, and the region is seeing increased sales activity from these
purchasers,” said Rick Crouch, broker and manager, Royal LePage Locations
North. “Recreational property buyers are choosing Collingwood for its
year-round amenities, such as access to private ski resorts in Blue Mountain,
bicycling clubs and hiking trails.”
Crouch also added that there has been an increase in sales
activity in the $300,000 to $500,000 price range. In 2019, the demand for
recreational properties is expected to remain steady, as baby boomers purchase
these properties for use in their retirement years.
Quebec
Median home prices in most of Quebec’s Laurentians have
risen this year compared to last year.
Mont-Tremblant, Saint-Sauveur, Morin-Heights and
Saint-Faustin/Lac-Carréare seeing increased demand from Gen Xers looking for a
seasonal getaway and to enjoy fresh air just outside Montreal. Demand was
mostly seen within the condominium segment this year, as recreational property
buyers sought homes that require no maintenance.
Between January and October of 2018, the median price of a
condominium at the foot of Mont-Tremblant’s ski station saw a significant
increase climbing 30.0 per cent to $325,000, compared to the same period in
2017. During the same period, year-over-year, the median price of a condominium
in Mont-Tremblant’s Village rose 8.1 per cent to $186,500 while the price of a
detached home increased 1.9 per cent to $425,000. Further away from the slopes,
detached property home prices in St-Jovite remained relatively flat, dipping
1.3 per cent year-over-year to $230,000, while the median price of a
condominium saw a 2.2 per cent increase, during the same period to $199,950.
“Proximity to the slopes is a key requirement for many
buyers. Mountain-side properties are appreciating at a healthy pace, especially
in Mont-Tremblant where the resort is undergoing significant improvements,”
said Paul Dalbec, real estate broker, Mont-Tremblant Real Estate, a division of
Royal LePage. “Mont-Tremblant’s popularity keeps growing as a renowned ski
resort, including among international buyers whose numbers are increasing over
the years.”
Closer to Montreal, the median price of both detached homes
and condominiums in Saint-Sauveur increased 18.9 per cent year-over-year,
reaching $305,000 and $270,000, respectively. Fueling these increases is demand
from Montreal’s North Shore spreading further into the Laurentians and Greater
Montreal Area’s employment growth in recent years. During the same period,
Morin-Heights saw detached property prices appreciate 13.0 per cent
year-over-year to $315,000. In contrast, home prices in the Saint-Faustin/Lac-Carré
area decreased a more modest 4.9 per cent to $173,500.
Although sales should slow slightly in December, Dalbec
expects the market to pick up again near the end of January 2019 as buyers
return to the market after the holidays.
In Estrie, the Bromont, Orford and Sutton regions continue
to be a prime target for Montrealers looking to buy recreational property. In
Bromont, as a result of increasing demand for condominiums, the median price in
that segment rose 8.9 per cent year-over-year to $247,500, while the price of a
detached home in the region remained relatively flat, appreciating 1.4 per cent
to $355,000.
Meanwhile, Orford and Sutton single-family home prices rose 12.6
and 10.1 per cent to $295,000 and $345,000, respectively.
“With their proximity to the Island of Montreal and its
South Shore with ski resorts and lakes nearby, Estrie remains a popular
destination for buyers,” said Christian Longpré, agency owner and real estate
broker, Royal LePage Au Sommet.
Waterfront and slope side properties are most coveted by
buyers, although these are usually more expensive.
“We are seeing a pull towards slope side condos for
families, which is great for ski-in ski-out. It allows parents to sleep in
while kids go skiing,” added Longpré. “These types of turnkey properties are
selling faster than in previous years. Rather than having to worry about
renovating and maintaining their recreational property, owners want to spend as
much time as possible enjoying outdoor activities.”
Meanwhile, numerous baby boomers are buying secondary homes
with the intention of moving in permanently when they retire in a couple years.
