Driven by price gains in Canmore, the largest reporting region in Alberta, the aggregate price of a single-family home in recreational regions rose 10.2 per cent to $819,583, according to a report real estate firm Royal LePage.
The report said the aggregate price in the province is expected to increase 2.4 per cent in 2020.
Although sales in Canmore were flat compared to the same period last year, the median price of a single-family home in the region increased 11.4 per cent year-over-year to $930,000, it said.
“We are seeing good demand in most segments of the market, including retirement, local, and recreational,” said Brad Hawker, broker and owner of Royal LePage Rocky Mountain Realty, in a news release on Thursday.
“While most buyers already know about the year-round recreational activities and lifestyle, many are surprised to find the area with so many cultural opportunities and how incredibly welcoming Canmore is for new residents of all ages.”
While Canmore saw the largest year-over-year price gains, single-family homes in other reporting regions saw healthy single-digit gains, added the report.
The report said recreational property in Canada saw healthy price gains leading up to the 2019 spring market, rising five per cent to $411,471 compared to the previous year. Royal LePage said it is forecasting another year of solid gains (4.7 per cent) as high demand in Ontario and Quebec continue to put upward pressure on prices, offsetting softer market conditions in British Columbia. Low inventory in Ontario and weak demand in British Columbia were the primary drivers of a decline in Canadian recreational property sales (-8.3 per cent).
“With the youngest baby boomers a decade away from retirement, and their older peers well on their way, we are seeing robust demand for cottage, cabin and chalet-style retirement properties,” said Phil Soper, president and CEO of Royal LePage.
“Young families have traditionally made up a significant portion of the demand for recreational property, as they look to create a special place for children to grow up. Today they find themselves having to compete with their parents for that spot on the water, with boomers leveraging the significant equity from their existing urban homes. In Ontario and Quebec, this has resulted in exceptional demand and upward pressure on prices. In Western Canada, it has supported demand and stabilized prices.”
Royal LePage said it forecasts he aggregate price of a single-family home in recreational regions in Canada to increase by 4.7 per cent by spring 2020, rising from $411,471 to $429,714.2
– Mario Toneguzzi for Calgary’s Business