According to the Royal LePage Winter Recreational Property Report released Tuesday, Canada’s popular ski regions have posted double-digit year-over-year home price appreciation since the beginning of 2022, despite rising interest rates and price declines in the residential market.
But Royal LePage is forecasting that the median price of a single-family detached home in Canada’s recreational ski regions will decrease 3.0 per cent over the next 12 months to $1,011,451.
Nationally, in the first 10 months of the year, the median price of a single-family detached home increased 15.1 per cent year-over-year to $1,042,700.
“While the rapid rise in interest rates, which began in March of this year, has caused many would-be buyers in the residential market to move to the sidelines, some recreational property purchasers – most notably in higher-end markets – have demonstrated a greater tolerance to increasing monthly mortgage costs,” said Pauline Aunger, broker of record, Royal LePage Advantage Real Estate. “Additionally, many buyers of secondary properties are able to leverage equity from their primary residence or may not require financing at all.
“For most Canadians, owning a recreational property is a nice-to-have lifestyle option. In the current economic environment, it is not surprising that sales have declined. With recreational homes in greater supply and most staying on the market longer, those that remain in the market are facing less competition, compared to last year. While activity has moderated from the exuberant levels seen during the pandemic boom, demand for recreational properties remains healthy – both as primary and secondary residences. Even as offices reopen and international travel resumes, buyers with the ability to work remotely continue to permanently relocate into recreational communities in search of better work-life balance and access to the outdoors.”
All recreational regions surveyed recorded double-digit declines in the number of homes sold during the first 10 months of 2022, compared to the same period last year, when demand for properties reached historical highs. Royal LePage recreational property market experts across the country report more balanced conditions and an increase in inventory, compared to 2021. It is widely anticipated that further price growth is unlikely, as activity levels are expected to continue their decline, added the report.
(Mario Toneguzzi is a veteran of the media industry for more than 40 years and named in 2021 a Top Ten Business Journalist in the world and only Canadian)
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