In the last year, Canadians have been shifting their attention to recreation activities and more outdoor living space, which ultimately has meant a rise in interest in the recreational property market. RE/MAX released the 2021 Re/MAX Recreational Property Report after a survey was conducted on the topic.
Cabin & Cottage Trends Across Canada (2021)
Source: remax.ca
Canadians opt for more affordability and new lifestyle, flocking to recreational property market
57 per cent of markets offer properties below $500K, according to RE/MAX brokers and agents
- Average sale price anticipated to rise up to 30% in some recreational property markets, according to RE/MAX brokers and agents.
- 44 per cent of recreational property buyers are budgeting $200,000-$500,000 in the next 12 months.
- 57 per cent of Canadian recreational markets include at least one property type within the $200K-$500K price range.
Kelowna, BC and Toronto, ON, May 18, 2021 – The red-hot demand seen in Canada’s urban centres has migrated into recreational markets, as interest and activity in suburban and rural properties continues to grow. Despite rising demand, 57 per cent of Canadian recreational markets still have at least one property type with an average price below $500,000, according to the 2021 RE/MAX Recreational Property Report. Furthermore, 57 per cent of RE/MAX brokers and agents in recreational markets anticipate single-digit price growth over the remainder of 2021.
According to a Leger survey conducted on behalf of RE/MAX, more than half of those who plan to purchase a recreational property in the next year (59 per cent) are first-time recreational property buyers. Twenty-one per cent of Canadians are looking to recreational markets after being priced out of an urban centre. Low borrowing rates are working in their favour, with 22 per cent saying the lower rates have increased their ability to buy.
The survey also found that 11 per cent of Canadians were searching for a recreational property prior to the start of the pandemic and are still searching, and 15 per cent of Canadians who were not searching for a recreational property prior to the pandemic are now looking.
Shifting home-buying trends, as prompted by the pandemic, are exacerbating inventory challenges in a majority of recreational markets across Canada. The growing demand in these regions is also putting upward pressure on prices which is impacting affordability in many recreational markets, which RE/MAX brokers anticipate will be a long-term trend. Tofino, Ucluelet and Niagara regions, to name but a few, are experiencing low inventory levels, bidding wars and sky-high prices.
