recreational housing

RECREATIONAL PROPERTY REPORT – 2016

As real estate prices rise, many Canadians are looking for alternative ways to finance their dreams of cottage or cabin ownership. In a recent survey of RE/MAX agents and brokers, more than half reported seeing an increase in buyers who planned to rent out their property full- or part-time. In a separate survey of Canadians, conducted by Leger, nearly 60 per cent agreed that due to the emergence of popular, user-driven vacation rental websites, it is easier for an owner to rent out an investment property today versus five years ago.
The Leger survey also found that millennials were most likely to have spent time at a cottage or cabin in the past year, demonstrating that young Canadians are sustaining demand for access to recreational properties. This provides an opportunity for buyers to finance their second homes, most notably in high demand areas such as Grand Bend, Ontario, Tofino, B.C., and Quebec’s Eastern Townships.
In most of the regions that reported an increase in buyers planning to rent out their properties, demand is driven primarily by families and retirees, rather than investors. Retirees were reported as being key drivers of demand in 83 per cent of regions surveyed, and 53 per cent of regions reported an increase in retiree buyers this year compared to last year.
As the large demographic of Baby Boomers retires, sellers who benefitted from significant price appreciation in cities like Vancouver and Toronto are putting that equity into recreational markets, which is causing prices to increase in those regions. Some buyers who may still be five or 10 years away from retirement are taking the opportunity to enter those markets now, renting out their property until they are ready to retire.
This effect has been especially pronounced in British Columbia, where significant price increases in the Lower Mainland are encouraging buyers to invest in regions such as the Okanagan and the Gulf Islands.
The low Canadian dollar is having a positive effect on Canada’s recreational property markets. Canadians, mainly Baby Boomers, who bought properties in the U.S. when U.S. real estate prices were comparably low are selling them at a profit and investing in Canadian recreational markets. The low dollar is also encouraging Canadians to vacation within the country rather than going abroad, putting their money into vacation rentals closer to home.
Some regions, particularly established recreational destinations with international reputations such as Whistler, the Muskokas and Mont Tremblant, are seeing foreign buyers, primarily from the U.S., return to those markets. Cape Breton Island, which recently made international news when a website “Cape Breton If Donald Trump Wins” gained the attention of high-profile news media, has seen increased interest from prospective U.S. buyers this year due to the publicity boost, combined with favourable exchange rates.
Click on the following link: 2016RecreationalPropertyReport for the full report.
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Cottages, Camps, Cabins and Condos – RE/MAX report sees sunny skies ahead for recreational property sales in Canada

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Today RE/MAX released its annual Recreational Property Report, showing healthy activity across much of the country and forecasts modest increases in sales and prices through the rest of the year. With schools out and the coming Canada Day long weekend marking the unofficial start of summer, national recreational property sales and listings have rebounded from a slow start caused by the late spring and cold winter experienced in many markets throughout the country.
National Trends: While there are nuances and specific attractions that define local markets across the country, a number of broad national trends have been observed.
Buyer Profiles: Two groups of buyers are driving the majority of recreational properties sales in Canada. The first is made up of families with younger children, who have built up equity in their primary residence and are using that money to purchase a vacation property. The second group is made up of near or recent retirees who have purchased a recreational property with a plan to use it as a primary summer residence and launching pad for winter travel.
Residential Spillover: Canada’s hot residential real estate market in urban centres has had a spillover effect on recreational property sales. This is particularly true in markets within a two-hour drive of the country’s large urban centres, where price appreciation has allowed homeowners to use equity gains in their primary residence to purchase a second home for recreational use.
Evolving Use: The way buyers are using their recreational properties is changing. While in the past, properties were largely used for weekend getaways and a week or two of summer vacationing, today many are purchasing a property from which they can work throughout the summer. Furthermore, a majority now see their recreational property as a four-season vacation option, rather than just a summer retreat.
CMHC Insurance Changes: While some potential recreational buyers may have been discouraged by the Canada Mortgage and Housing Corporation’s recent decision to eliminate insurance on second mortgages, little to no material impact has been witnessed from this change. There are many options available for financing and insuring mortgages on a second property and an experienced RE/MAX agent can help buyers find the option that best meets their specific needs.
Read more: 2014 Recreational Property National Press Release
The full RE/MAX Recreational Property Report, with market activity summaries for 41 regions across the country, is available at: http://rem.ax/1lNuH73.
Videos summarizing markets in the Ontario and Atlantic Regions can be found here: http://rem.ax/1lNyFfV and summarizing Western Canada regions can be found here: http://rem.ax/1lOV6TC.