Accelerating demand will be the segment’s defining factor for the rest of 2021
Interest and activity in Canada’s suburban and rural recreational properties continues to accelerate, with average sale prices likely to grow by as much as 25% in the most contested markets, according to a new study by RE/MAX.
The poll found that around 21% of Canadians are considering recreational properties after being priced out of urban markets. Roughly 22% attributed their improved purchasing ability to the current low-rate environment.
Of those planning to buy recreational property in the next 12 months, around 59% are first-time buyers of the asset class.
Approximately 57% of the nation’s recreational markets include at least one property type in the $200,000 to $500,000 price range. An estimated 44% of recreational real estate buyers are also setting aside this same sum over the next year or so.
“There’s intense competition among buyers in Canada’s recreational property markets and inventory is stretched thin,” said Christopher Alexander, chief strategy officer and executive vice president at RE/MAX of Ontario-Atlantic Canada. “But Canadians recognize that recreational properties remain an affordable option in such a turbulent market. There are still many recreational markets across Canada that are deemed affordable, despite the growing demand and rising prices.”
Affordable recreational markets primarily featuring waterfront properties include Thunder Bay ($425,805), Charlottetown ($334,447), and Manitoba’s Interlake Region ($363,833).
For the remainder of 2021, sellers’ market-like conditions will most likely persist in 97% of Canada’s recreational markets, RE/MAX said.