Single-family detached home
price increased 15.1% in the first 10 months of 2022
- B.C. ski region of Big White posts highest median price gain in
single-family detached segment (45.5%) among regions surveyed
- Quebec's Mont-Tremblant region reports highest median
price increase in condominium segment (44.4%) among regions
surveyed
- Southern Georgian Bay's condominium prices record modest
increase of 1.3% year-over-year in 2022, following more than 50%
jump last year
- 75% of U.S. border state citizens who own a Canadian
recreational property transacted following the federal government's
announcement of a two-year foreign buyer ban
TORONTO, Nov. 29,
2022 /CNW/ - According to the Royal LePage
Winter Recreational Property Report released today, Canada's popular ski regions have posted
double-digit year-over-year home price
appreciation1 since the beginning of
2022, despite rising interest rates and price declines in the
residential market. Nationally, in the first 10 months of the year,
the median price of a single-family detached home increased 15.1%
year-over-year to $1,042,700.
"While the rapid rise in interest rates, which began in March of
this year, has caused many would-be buyers in the residential
market to move to the sidelines, some recreational property
purchasers - most notably in higher-end markets - have demonstrated
a greater tolerance to increasing monthly mortgage costs," said
Pauline Aunger, broker of record,
Royal LePage Advantage Real Estate. "Additionally, many buyers of
secondary properties are able to leverage equity from their primary
residence or may not require financing at all."
All recreational regions surveyed recorded double-digit declines
in the number of homes sold during the first 10 months of 2022,
compared to the same period last year, when demand for properties
reached historical highs. Royal
LePage recreational property market experts across the
country report more balanced conditions and an increase in
inventory, compared to 2021. It is widely anticipated that further
price growth is unlikely, as activity levels are expected to
continue their decline.
____________________________
|
1
Median price and sales data for 16 popular ski regions across
Canada was compiled and analyzed by Royal LePage for the periods
between January 1, 2022 and October 31, 2022, and January 1, 2021
and October 31, 2021. Data was sourced through local brokerages and
boards in each of the surveyed regions.
|
"For most Canadians, owning a recreational property is a
nice-to-have lifestyle option," said Aunger. "In the current
economic environment, it is not surprising that sales have
declined. With recreational homes in greater supply and most
staying on the market longer, those that remain in the market are
facing less competition, compared to last year. While activity has
moderated from the exuberant levels seen during the pandemic boom,
demand for recreational properties remains healthy - both as
primary and secondary residences. Even as offices reopen and
international travel resumes, buyers with the ability to work
remotely continue to permanently relocate into recreational
communities in search of better work-life balance and access to the
outdoors."
In its 2022 federal budget released on April 7th, the Government of Canada announced that it will be implementing
a two-year ban on non-Canadian citizens and non-permanent residents
from purchasing residential property in the
country.2 The ban is slated to come into
effect on January 1st, 2023. While
vacation homes are expected to be exempt from this restriction, the
announcement has had a significant impact on the buying intentions
of U.S. citizens.
A recent Royal LePage survey of
U.S. citizens living in border
states,3 conducted by Leger, found that
75 per cent of those who currently own a recreational property in
Canada said that they made their
purchase after the two-year foreign buyer ban was announced. Of
those who purchased following the announcement, 77 per cent stated
that the potential impacts of the ban on their ability to buy real
estate in Canada after
January 1st, 2023, influenced their
decision to purchase before the end of this year.
Among those surveyed who do not currently own a recreational
property in Canada, but plan to
make a purchase, 67 per cent said that the current strength of the
U.S. dollar has made them more inclined to buy a home north of the
border. The primary reasons for wanting to buy a recreational
property in Canada are
multi-season usability (39%), for retirement purposes (38%), and
for investment purposes (37%).
"Canada's winter recreational
regions are a draw for our neighbours to the south who are looking
for a place to live and play in the winter months. The strength of
the U.S. dollar, investment opportunities and relative
affordability of recreational properties have enticed buyers from
south of the border. With its world-class skiing resorts and
picturesque winter landscapes, Canada will remain a desirable location for
recreational buyers from all over the world," said Aunger.
Royal LePage is forecasting that
the median price of a single-family detached home in Canada's recreational ski regions will
decrease 3.0 per cent over the next 12 months to $1,011,451.
Data chart - Royal LePage 2022
Winter Recreational Property Report:
rlp.ca/table_2022winterrecreationalreport
Survey chart - 2022 Royal LePage Report on U.S. Recreational
Property Buyers in Canada:
rlp.ca/us-recreational-buyers-2022survey
____________________________________
|
2 Government of Canada,
https://www.budget.canada.ca/2022/report-rapport/chap1-en.html#m23
|
3 An
online survey of 1506 U.S. citizens over the age of 18 living in
border states (Maine, New York, Vermont, Pennsylvania, Michigan,
Ohio, Wisconsin, Minnesota, North Dakota, Montana, Washington, New
Hampshire, Idaho, Oregon, Massachusetts, Indiana and Illinois) was
completed between November 8th to November 14th, 2022, using
Leger's online panel. No margin of error can be associated with a
non-probability sample (i.e. a web panel in this case). For
comparative purposes, though, a probability sample of 1506
respondents would have a margin of error of +/-2.5% on
n=1500.
|
|
REGIONAL SUMMARIES
Quebec
Mont-Tremblant (Mont-Tremblant, Saint-Faustin–Lac-Carré,
La Conception)
The median price of a single-family detached home in
Mont-Tremblant's recreational
property market for the first 10 months of the year increased 23.5
per cent year-over-year to $500,000,
while sales decreased 38.1 per cent. Meanwhile, the median price of
a condominium increased 44.4 per cent year-over-year to
$475,000. Sales in the condominium
segment decreased 47.8 per cent in 2022.
For prospective buyers seeking a property slopeside or at
mountain base, the current starting prices are around $1.2 million for a single-family detached home
and $650,000 for a condominium.
Paul Dalbec, a chartered real
estate broker with Mont-Tremblant Real Estate, a division of
Royal LePage, says that the
Mont-Tremblant real estate market
is in the midst of transitioning from a seller's market to a
buyer's market, which explains the sharp decline in sales. With
interest rates moving higher, many potential buyers have adopted a
wait-and-see attitude.
"The current slowdown should help shift the Tremblant housing
market back to a more normal sales cycle," Dalbec says. "I expect
that in the coming months, slopeside luxury condos worth between
$700,000 and $1 million, and single-family residences valued
from $400,000 to $600,000 will be most affected by the price
correction, as those properties appreciated much more during the
pandemic."
Dalbac says the announcement by the federal government in its
April, 2022, budget speech of a ban on foreign housing investments
in Canada may have dampened the
spirits of some international buyers looking to purchase properties
in Mont-Tremblant.
Royal LePage is forecasting that
the median price of a single-family detached home in this region
will decline by 10 per cent over the next 12 months.
Mont Saint-Sauveur
(Saint-Sauveur, Morin-Heights, Piedmont)
The median price of a single-family detached home in Mont
Saint-Sauveur's recreational property market for the first 10
months of the year increased 19.7 per cent year-over-year to
$562,500, compared to the same period
in 2021, while sales decreased 32.8 per cent. Meanwhile, the median
price of a condominium increased 22.4 per cent year-over-year to
$382,300. Sales in the condominium
segment decreased 32.3 per cent in 2022.
For prospective buyers seeking a property slopeside or at
mountain base, the current starting price is around $675,000 for a single-family home, and
$395,000 for a condominium.
"The year 2023 should usher in better negotiating conditions
between sellers and buyers," predicts Éric Léger, chartered real
estate broker with Royal LePage Humania, adding that sellers in the
area have started reducing their asking price when the initial
listing fails to attract buyers. "Buyers are showing more
confidence, with many more of them making conditional offers -
that's something that had all but disappeared during the pandemic.
Although the pandemic boom put many first-time buyers into
competitive offer scenarios, the current demand comes from
experienced buyers whose purchasing power is less affected by
economic ups and downs."
In the coming months, Léger expects to see a steady increase in
supply in the region.
Royal LePage is forecasting that
the median price of a single-family detached home in this region
will decline 5.0 per cent over the next 12 months.
Val Saint-Côme and Mont Garceau (Saint-Côme, Saint-Donat)
The median price of a single-family detached home in Val
Saint-Côme's and Mont Garceau's recreational property market for
the first 10 months of the year increased 17.9 per cent
year-over-year to $435,000, compared
to the same period in 2021, while sales dropped 36.3 per cent.
For prospective buyers seeking a property slopeside or at
mountain base, the current starting prices are around $450,000 for a single-family detached home, and
$300,000 for a condominium, although
inventory is low in this segment.
"Properties in Lanaudière remain among the most affordable in
Quebec's ski regions, despite the
significant increases of the past two years," observes Éric Fugère,
real estate broker with Royal LePage Habitations. "The current
period should bring great opportunities for buyers, but even more
importantly, time to choose wisely and negotiate fairly. Inventory
is creeping up but remains limited, as potential sellers in the
region - many of whom are secondary property owners - are waiting
for economic conditions to improve and buyer demand to increase,
before putting their homes on the market."
Fugère emphasizes the importance of dealing with a real estate
professional when selling or buying a recreational property,
especially in the winter.
Royal LePage is forecasting that
the median price of a single-family detached home in this region
will decline 12.5 per cent over the next 12 months.
Bromont, Sutton (Sutton, Brome
and Lac Brome) and Orford
(Orford and Magog)
The recreational property markets in Bromont, Sutton and Orford posted uneven price changes during the
first 10 months of the year . During this period, the median price
of a single-family detached home in Mount Orford (Orford and Magog) increased 17.8 per cent year-over-year
to $470,000. In Bromont and Mont Sutton (Sutton, Brome
and Lac-Brome), median prices for single-family homes declined 3.0
per cent and 0.9 per cent, to $586,000 and $548,000 respectively, during the same period.
Meanwhile, sales declined 25.3 per cent, 39.2 per cent and 12.7 per
cent respectively, in Orford,
Bromont and Sutton. During the same period, the median
price of a condominium climbed 19.5 per cent year-over-year to
$498,500 in Bromont, and 16.9 per cent year-over-year to
$291,000 in Orford, while sales were down 12.5 per cent
and 27.4 per cent, respectively.
For prospective buyers seeking a property slopeside or at
mountain base, starting prices currently range from $650,000 to $950,000 for a single-family home and from
$450,000 to $650,000 for a condominium.
"The runaway home price increases we saw in the Eastern
Townships between 2020 and the first half of 2022 have resulted in
a migration of demand toward less congested and less expensive
markets," explains Véronique Boucher, real estate broker with
Royal LePage Au Sommet. "Some real
estate markets like Bromont
reached record high appreciation, which explains why prices have
stabilized this year, to the benefit of other, more affordable
areas a bit farther away, like Orford. In the condo market, demand for rental
assets has contributed to price growth in recent years in
Orford, due to the potential for
additional income from short-term rentals, as well as strong resale
value."
Looking ahead to the new year, Boucher expects that price
appreciation in 2023 will depend greatly on the number of new
listings on the market. If there is more inventory, it could give
buyers more leverage for negotiating. Given that interest rates
will remain relatively high, prices should continue to taper off
for the first half of the year.
Royal LePage is forecasting that
the median price of a single-family detached home will decline 5.5
per cent in Bromont, 4.0 per cent
in Sutton, and 3.0 per cent in
Orford over the next 12
months.
Stoneham/Lac-Beauport (Stoneham-et-Tewkesbury, Lac
Delage, St-Gabriel-de-Valcartier, Lac-Beauport) and Mont-Sainte-Anne (Beaupré,
Sainte-Anne-de-Beaupré,
Saint-Ferréol-les-Neiges, Saint-Joachim)
The median price of a single-family detached home near the ski
slopes in Stoneham's and
Lac-Beauport's recreational
property market for the first 10 months of the year increased 15.9
per cent year-over-year to $475,300,
while sales slipped 26.5 per cent.
For prospective buyers seeking a property slopeside or at
mountain base, the starting price is currently around $700,000 for a single-family home, and
$300,000 for a condominium.
The median price of a single-family detached home in Mont
Sainte-Anne's recreational property market for the first 10 months
of the year increased 4.1 per cent year-over-year to $286,200, with sales decreasing 26.6 per cent.
Meanwhile, the median price of a condominium in the region
increased 16.0 per cent year-over-year to $145,000. Condominium sales increased 10.4 per
cent during the same period.
For prospective buyers seeking a property slopeside or at
mountain base, the starting price is typically $700,000 for a single-family home, and
$300,000 for a condominium.
"The runaway growth in recreational property prices over the
past two years was bound to come to an end," says Marc Bonenfant, chartered real estate broker
with Royal LePage Inter-Québec. "We've entered an adjustment phase
in the recreational areas of the Capitale-Nationale region, and we
should soon see more balance between supply and demand. That means
prices will continue to soften through the rest of this year and
well into 2023. We will likely see selling times continue to
lengthen, although days on market remain below average for the
region over the past decade."
Royal LePage is forecasting that
the median price of a single-family detached home will decline 10.0
per cent in the Stoneham/Lac-Beauport market, and 8.0 per cent in the
Mont-Sainte-Anne market over the next 12 months.
Data chart - Royal LePage 2022
Winter Recreational Property Report:
rlp.ca/table_2022winterrecreationalreport
Survey chart - 2022 Royal LePage Report on U.S. Recreational
Property Buyers in Canada:
rlp.ca/us-recreational-buyers-2022survey
Ontario
Southern Georgian Bay (Collingwood/Meaford/Thornbury)
The median price of a single-family detached home in Southern
Georgian Bay's recreational property market for the first 10 months
of the year increased 11.3 per cent year-over-year to $890,000. Meanwhile, the median price of a
condominium increased 1.3 per cent to $679,000 during the same period; a sharp contrast
to 2021, when condominium prices rose more than 50 per cent
year-over-year. For those looking to buy a house slopeside or at
mountain base, prices typically start at $1,500,000. Total sales were down 27 per cent
year-over-year in the region, following historic sales volumes in
2021.
"While the number of homes coming onto the market has increased,
we are seeing a notable decline in sales activity. The number of
days a property typically stays on the market has risen by about 30
per cent since the beginning of the year, settling back to
pre-pandemic levels as the buying boom comes to an end," said
Desmond von Teichman, broker, Royal
LePage Locations North. "Still, demand remains strong. We continue
to see a number of residents with remote working capabilities
permanently relocating to the region from the Greater Golden
Horseshoe in search of more affordable real estate and better
work-life balance. While this trend has slowed, we don't imagine
that it will end soon."
The short-term recreational rental market has been under
pressure as of late, added von Teichman. With global travel having
resumed once again, seasonal rentals face diminishing demand and
increasing supply as Canadians choose to vacation abroad. The
effects of higher inflation, rising mortgage rates and the
increased cost of living have also weakened demand on rentals, as
many Canadians cut back on discretionary spending. While there has
been a slight decrease in demand for luxury properties compared to
2021, von Teichman added that this segment of the market has
outperformed the overall market this year.
"Given its convenient proximity to the GTA, Southern Georgian
Bay's real estate market is largely driven by demand from within
Ontario," said von Teichman.
"Urban buyers may be somewhat cushioned from the impacts of rising
interest rates here, as funds acquired from selling their
properties in high-priced surrounding areas tend to stretch farther
and boost their buying power."
Market activity is largely motivated by local demand from nearby
cities. However, Ontario remains a
desirable destination for U.S. purchasers. Forty-three per cent of
U.S. citizens living in border states who currently own a
recreational property in Canada
have purchased a home in Ontario.
Of those who plan to purchase a recreational property in
Canada, 48 per cent say they
intend to purchase in the province.
Royal LePage is forecasting that
the median price of a single-family detached home in Southern
Georgian Bay will increase 5.0 per cent over the next 12 months, as
the market continues its return to pre-pandemic seasonal
trends.
Data chart - Royal LePage 2022
Winter Recreational Property Report:
rlp.ca/table_2022winterrecreationalreport
Survey chart - 2022 Royal LePage Report on U.S. Recreational
Property Buyers in Canada:
rlp.ca/us-recreational-buyers-2022survey
Alberta
Canmore
The median price of a single-family detached home in
Canmore's recreational property
market for the first 10 months of the year increased 23.6 per cent
year-over-year to $1,588,900, while
the median price of a condominium increased 5.9 per cent to
$663,400. Total sales were down 41
per cent year-over-year in the region.
"After a record year in 2021, sales have trended back towards
long-range historic norms. We have been in a seller's market for
several years, but have recently begun to show signs that we are
edging towards a more balanced market in some segments," said
Brad Hawker, associate broker, Royal
LePage Solutions. "Inventory has remained at similar levels this
past year, which is still well below typical numbers, putting
continued upward pressure on prices. Sellers can be reluctant to
list their homes in the region, as there is limited inventory of
recreational properties to upgrade into."
Like many recreational markets, Canmore continues to see buyers with remote
working capabilities relocate into the community, Hawker added.
Although relocation inquiries have reduced, as offices recall
employees back to fully-in-office or hybrid work arrangements,
Hawker predicts that the work-from-home option will exist for the
foreseeable future, adding pressure to the market alongside
increased demand from retirees.
"Many Canmore buyers do not
require financing. As a result, rising interest rates are not
having as significant an impact on our market, compared to other
regions. While I do expect prices to soften over the coming year,
declines will be modest," said Hawker. "The impact of higher
borrowing costs on the overall economy, however, is causing some
buyers to take a wait-and-see approach. Most buyers in this market
have the luxury of time, and are waiting to see how things
unfold."
Royal LePage is forecasting that
the median price of a single-family detached home in Canmore will decrease 4.0 per cent over the
next 12 months, as sales are expected to return to the 10-year
average for the region.
Data chart - Royal LePage 2022
Winter Recreational Property Report:
rlp.ca/table_2022winterrecreationalreport
Survey chart - 2022 Royal LePage Report on U.S. Recreational
Property Buyers in Canada:
rlp.ca/us-recreational-buyers-2022survey
British
Columbia
Whistler
The median price of a single-family detached home in Whistler's
recreational property market for the first 10 months of the year
increased 14.8 per cent year-over-year to $3,648,200, while the median price of a
condominium increased 9.7 per cent to $673,300. For those looking to buy a house or
condominium slopeside or at mountain base, prices typically start
at $2,000,000 and $600,000, respectively. Total sales were down 35
per cent year-over-year in the region.
"In addition to skiing, summer activities such as biking and
golfing - coupled with people's overall desire to be outdoors in
nature - make Whistler a popular year-around recreational
destination that attracts both regional and international luxury
buyers," said Frank Ingham,
associate broker, Royal LePage
Sussex. "Home sales have decreased significantly, compared
to the pandemic buying boom. And, demand for properties in the area
remains strong, although muted compared to last year. Potential
buyers today have more choice and more time to sign a deal, as
inventory continues to increase along with the average days on
market."
Whistler, which is exempt from British
Columbia's speculation and vacancy tax, has long been a draw
for high-end property buyers from all over the world, including
many from Seattle, Washington.
Thirty-two per cent of U.S. citizens living in border states who
currently own a recreational property in Canada have purchased a home in British Columbia. Of those who plan to
purchase a recreational property in Canada, 33 per cent say they intend to
purchase in the province.
Royal LePage is forecasting that
the median price of a single-family detached home in Whistler will
decrease 10.0 per cent over the next 12 months, as sales are
expected to continue their downward trend, resulting in a surplus
of available supply.
Invermere
The median price of a single-family detached home in
Invermere's recreational property
market for the first 10 months of the year increased 4.8 per cent
year-over-year to $627,500, while the
median price of a condominium increased 22.2 per cent to
$275,000. For those looking to buy a
house or condominium slopeside or at mountain base, prices
typically start at $525,000 and
$250,000, respectively. Total sales
were down 33 per cent year-over-year in the region.
"Invermere is beginning to
shift from a strong seller's market towards a more balanced one.
Desirable properties that are well-priced continue to sell quickly,
but we are not seeing the same level of demand that we did in 2021.
The decline in sales volume directly correlates with the rise in
interest rates this year," said Barry
Benson, broker, Royal LePage Rockies West Realty. "Although
we have not seen a meaningful rise in resale listings this year,
the number of recreational properties available for short-term
lease has increased, as many homeowners look to the rental market
as a revenue source to offset rising borrowing expenses."
Over the last year, buyer demand from young couples and retirees
in search of affordable housing and a higher quality of life has
remained stable. Invermere's
proximity to Calgary makes it an
especially attractive option for Alberta buyers who are looking for greater
work-life balance, Benson added. While Invermere will continue to see demand for
recreational homes and short-term rental properties that offer
access to year-round leisure, sales volumes are expected to trend
back down to pre-pandemic levels over the next year, from historic
highs in 2021, resulting in lower home prices. Low inventory levels
will assist in keeping the market competitive and preventing large
price reductions.
Royal LePage is forecasting that
the median price of a single-family detached home in Invermere will decrease 7.5 per cent over the
next 12 months.
Revelstoke
The median price of a single-family detached home in
Revelstoke's recreational property
market for the first 10 months of the year increased 13.3 per cent
year-over-year to $850,000, while the
median price of a condominium increased 36.6 per cent to
$778,500. For those looking to buy a
house or condominium slopeside or at mountain base, prices
typically start at $5,000,000 and
$900,000, respectively. Total sales
were down 18 per cent year-over-year in the region.
"Property sales have slowed since hikes to interest rates began
earlier this year, with first-time buyers and those with tighter
budgets the most affected by rising borrowing costs. Still, this
will be the second-best year for Revelstoke on record," said Don Teuton, broker
and owner, Royal LePage Revelstoke. "The market is more balanced
compared to last year. Potential buyers find themselves in a much
less competitive environment, as demand has dampened. While higher
home prices and a shortage of inventory continue to be a challenge,
price gains recorded since the start of the pandemic boom are
unlikely to be sustained."
Teuton added that homebuyers from outside the region continue to
cash in on their existing properties and relocate to Revelstoke in search of a more balanced
lifestyle, including some from other higher-cost recreational
communities. Despite the current strength of the U.S. dollar,
demand from international buyers has been dampened by pandemic
fears and travel restrictions. However, Teuton expects that this
trend will reverse in the coming years.
Thirty-two per cent of U.S. citizens living in border states who
currently own a recreational property in Canada have purchased a home in British Columbia. Of those who plan to
purchase a recreational property in Canada, 33 per cent say they intend to
purchase in the province.
Royal LePage is forecasting that
the median price of a single-family detached home in Revelstoke will decrease 10.0 per cent over
the next 12 months, as further interest rate hikes and continued
economic uncertainty are expected.
Mount Washington/Comox
Valley
The median price of a single-family detached home in the Mount
Washington/Comox Valley region's
recreational property market for the first 10 months of the year
decreased 5.6 per cent year-over-year to $850,000, while the median price of a condominium
increased 18.8 per cent to $475,000.
For those looking to buy a condominium slopeside or at mountain
base, prices typically start at $300,000. Total sales were down 71 per cent
year-over-year in the region, as a result of record low inventory
that has reached near-zero levels over the past six months.
"The sense of urgency has disappeared from Mount
Washington/Comox Valley's housing
market, resulting in healthier, more balanced conditions for buyers
and sellers," said Rick Gibson,
sales representative, Royal LePage
in the Comox Valley. "Home prices
have leveled off since the end of June. As leaseholds and cash
buyers are common in this market, the region is somewhat sheltered
from the impacts of rising interest rates.
"Mount Washington is an all-season destination, where residents
can enjoy alpine activities in the winter, and beaches, golf
courses and hiking in the summer," Gibson added. "If inventory were
to increase, I expect sales would rise in tandem."
Gibson added that a lack of convenient transportation options,
such as flights to and from adjacent states, prevents many
interested U.S. buyers from purchasing in the region.
Royal LePage is forecasting that
the median price of a single-family detached home in
MountWashington/Comox Valley will
increase 8.0 per cent over the next 12 months, as extremely low
inventory is expected to put continued upward pressure on prices in
2023.
Sun Peaks
The median price of a single-family detached home in
Sun Peaks' recreational property
market for the first 10 months of the year increased 13.0 per cent
year-over-year to $1,540,000, while
the median price of a condominium increased 26.6 per cent to
$504,500. For those looking to buy a
house or condominium slopeside or at mountain base, prices
typically start at $1,350,000 and
$320,000, respectively. Total sales
were down 25 per cent year-over-year in the region, which is
located outside Kamloops, British
Columbia.
"Although year-over-year sales are down and available inventory
has decreased slightly, home prices have noticeably climbed this
past year. Some of the heat has been taken out of the market
compared to the 2021 activity levels, although it remains
favourable to home sellers," said Kyle
Panasuk, sales representative, Royal LePage Westwin Realty.
"We continue to see a desire for home office space from buyers who
can work remotely. The local school, skating rink and access to
ski-in, ski-out amenities at Sun
Peaks are a draw for many local purchasers, as well as
remote workers from outside the region looking to relocate to the
community full-time."
Panasuk added that the short-term recreational rental market has
continued to perform well in Sun
Peaks. Rising interest rates - which have impacted the
buying power of both recreational and principal property buyers -
may encourage some homeowners to rent out their properties to
recoup some of their monthly expenses.
Royal LePage is forecasting that
the median price of a single-family detached home in Sun Peaks will increase 8.0 per cent over the
next 12 months.
Big White
The median price of a single-family detached home in Big White's
recreational property market for the first 10 months of the year
increased 45.5 per cent year-over-year to $1,600,000, while the median price of a
condominium increased 11.1 per cent to $500,000. For those looking to buy a house or
condominium slopeside or at mountain base, prices typically start
at $900,000 and $400,000, respectively. Total sales were down 33
per cent year-over-year in the region, located outside of
Kelowna, British Columbia.
"Transactions at the upper end of the market are largely
responsible for the dramatic price increases in the single-family
segment, as Big White continues to attract luxury recreational
property buyers. However, demand has slowed over the last year as
buyers adjust to the rising interest rate environment and sellers
feel less urgency to list their properties," said Andrew Braff, sales representative, Royal LePage
Kelowna. "As activity moderates, we are seeing fewer multiple-offer
scenarios compared to last year."
Braff noted that luxury property owners are less impacted by
changes in the market, and are more likely to keep their properties
in the family long-term, for several generations to enjoy.
In addition to local buyers, the world-renowned ski region
attracts demand from across the border and around the globe.
However, pandemic travel restrictions over the last two years have
forced some international homeowners to visit their recreational
properties less frequently.
Thirty-two per cent of U.S. citizens living in border states who
currently own a recreational property in Canada have purchased a home in British Columbia. Of those who plan to
purchase a recreational property in Canada, 33 per cent say they intend to
purchase in the province.
Royal LePage is forecasting that
the median price of a single-family detached home in Big White will
increase 7.0 per cent over the next 12 months.
Data chart - Royal LePage 2022
Winter Recreational Property Report:
rlp.ca/table_2022winterrecreationalreport
Survey chart - 2022 Royal LePage Report on U.S. Recreational
Property Buyers in Canada:
rlp.ca/us-recreational-buyers-2022survey
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About the Royal LePage Winter
Recreational Property Report
The 2022 Royal LePage Winter Recreational Property Report
compiles insights, data and forecasts from 16 popular ski regions.
Median price and sales data was compiled and analyzed by
Royal LePage for the period between
January 1, 2022 and October 31, 2022 and January 1, 2021 and October 31, 2021. Data was sourced through local
brokerages and boards in each of the surveyed regions. Data
availability is based on a transactional threshold and whether
regional data is available using the report's standard housing
types.
About the Leger survey
An online survey of 1506 U.S. citizens over the age of 18 living
in border states (Maine,
New York, Vermont, Pennsylvania, Michigan, Ohio, Wisconsin, Minnesota, North
Dakota, Montana,
Washington, New Hampshire, Idaho, Oregon, Massachusetts, Indiana and Illinois) was completed between November 8th to November 14th, 2022, using
Leger's online panel. No margin of error can be associated with a
non-probability sample (i.e. a web panel in this case). For
comparative purposes, though, a probability sample of 1506
respondents would have a margin of error of +/-2.5% on
n=1500.
About Royal LePage
Serving Canadians since 1913, Royal
LePage is the country's leading provider of services to real
estate brokerages, with a network of approximately 20,000 real
estate professionals in over 600 locations nationwide. Royal LePage is the only Canadian real estate
company to have its own charitable foundation, the Royal LePage
Shelter Foundation, dedicated to supporting women's and children's
shelters and educational programs aimed at ending domestic
violence. Royal LePage is a
Bridgemarq Real Estate Services Inc. company, a TSX-listed
corporation trading under the symbol TSX: BRE. For more
information, please visit www.royallepage.ca.
SOURCE Royal LePage Real Estate Services