Demand Remains Strong
The Canadian vacation real estate market of 2023 was recently described as “gold rush fever” by Royal LePage. This demand has continued through 2024. Major entertainment groups across the country are anticipating strong market forecasts for the year.
Canmore, Alberta: Broader Pool of Buyers
Brad Hawker, a broker associate with Royal LePage Solutions in Canmore, Alberta, says the high-end market has tightened up a bit. There is a lot of fun, he explains. This end of the market is generally unaffected by rising interest rates. Most customers pay cash.
Hawker says the customer base has expanded in the last few years. He has been selling real estate in Kenmore for 32 years. Most of his first 20 years were Albertans. Consumers have expanded over the past seven to eight years, especially in the aftermath of COVID. Seniors and retirees from other provinces, including Saskatchewan, Manitoba, Ontario, Quebec and British Columbia, have expressed increased interest.
Supply is the biggest challenge
The biggest challenge for real estate agents and potential buyers is supply. Re/Max findings show that 64 per cent of Canadian cottage owners are holding on to their properties rather than selling them. Hawker says sales will get even stronger with the addition of the new inventory.
A Royal LePage survey of 150 vacation real estate brokers across Canada shows that 41 per cent have fewer listings compared to 2023. Thirty-three per cent said their community levels are the same however, 64 percent said buyer demand for recreational homes was the same or increased.
Lakelands North, Ontario: Low Sales, Strong Prices
Derek Stevens of Engel & Volker in Port Carling, Muskoka, Ontario, works in the second home, plumbing market. He says anyone who lands at the water’s edge is looking for wealth. Lakelands North saw just 775 waterfront transactions by 2023, a 7 percent decrease from 2022. Despite the smaller supply, the average price was $1.388 million.
Getting Creative: ‘They’re Not Making Any More Waterfront’
Stevens says land values have skyrocketed in recent years. The houses are big enough for tourists. There were 8 projects in excess of $10 million by 2023, up from 2022. Stevens explains that there are few waterfront assets. Buyers are getting creative and acquiring properties previously considered too steep or rocky.
Mont-Tremblant, Quebec: Less Impact from Financing & Interest Rates
Steve Lafave of Engel & Volkers in Mont-Tremblant says interest rates have slowed middle interest. However, the aesthetic side is very strong. High-end buyers acquire assets with zero income and little impact from interest rates. Baby Boomers heading into retirement want an active lifestyle. Distance work so the difference between first and second homes is blurred. Its customers are 75 per cent Canadian and 25 per cent international.
Whistler, British Columbia: Seasonal Residents Settling Full-Time
In British Columbia, 50 % of leisure property professionals reported less savings this year compared to last. 46 % saw the same demand. Frank Ingham of Royal LePage Sussex expects new regional short-term rent restrictions could boost supply. High-speed Internet access and remote service allow seasonal residents to stay in Whistler full-time for year-round entertainment. Seven- and eight-figure luxury buyers are less affected by interest rates.
National Price Forecasts
Royal LePage forecasts the median price of a single-family home in Canadian resorts will rise 5 per cent this year to $678,930. All of the province’s entertainment markets are expected to see higher prices, with Ontario forecasting a whopping 8 per cent increase. Re/Max expects recreational property prices to rise 6.8 %.
