Alberta’s average recreational property price is 86 per cent higher than the national average, thanks to a limited supply of waterfront property near major cities, according to a new market report.
The 2017 Royal LePage Canadian Recreational Housing Report notes the majority of major provincial markets are experiencing increases in year-over-year price and sales volume increases, lead by high prices in the Western Canada market. Tight supply and healthy demand of recreational housing may be positioning the Alberta residential market for a comeback.
“There is a transition happening,” said John Hripko, sales representative for Royal LePage Benchmark. “With the economy improving, and consumer confidence strengthening across the province, we expect to see an upswing in demand for discretionary purchases like recreational properties in the near term, which will ultimately put upward pressure on prices.”
Alberta’s aggregate price for recreation property – including lakefront, riverfront, oceanfront, island, woods cottage/cabin and resort/condo types – is $816,700 as of May 2017, as compared to the national price of $439,000.
“Unlike many other oil producing provinces, where home values have remained constrained, in part due to the impact of commodity prices, recreational properties near Calgary and Edmonton have held their value remarkably well in the face of the recent economic downturn, especially when compared to other market segments,” said Kevin Somers, chief operating officer of Royal LePage Real Estate Services Limited.
In contrast, the average price for a recreational property in Saskatchewan is $297,200.
The B.C. aggregate price is $595,077 – the second highest in Canada. The year-over-year value increase in the province is due to a recovery in consumer confidence following the foreign buyer tax implementation last year, according to the report. Jim Morris, manager of Royal LePage Western Canada believes recreation property prices are back to similarly high levels seen prior to the tax.
Royal LePage found the majority of recreational buyers are “Gen-Xers,” identified as people between 36 to 51 years old.