#CBC: “Canada’s leisure residence gross sales ‘sturdy’ heading into summer season season, survey says ” #Toronto #Montreal #Calgary #Ottawa #Canada

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If you are on the hunt for the right summer season hideaway, be ready to spend extra in your cottage, camp or cabin this season.

The common worth of a leisure residence in Canada is predicted to rise 5.eight per cent to $467,764 by the tip of September, based on a brand new survey by Royal LePage. That’s up from $442,239 in the identical interval final yr.

Retiring child boomers and gen-Xers are driving leisure residence gross sales as they appear towards retirement or for a secondary residence to lift youngsters, mentioned the survey, which polled 200 of the actual property agency’s property advisers throughout Canada between mid-May and the beginning of June.

“Driven by the strength of the nation’s economy, Canada’s recreational real estate market is set to experience another strong year,” Royal LePage CEO Phil Soper mentioned within the report.

“While home values and sales activity in Canada’s largest urban markets have softened, demand for recreational properties remains robust in most regions.”

The survey comes simply days after knowledge from actual property boards in Toronto and Vancouver confirmed that residence gross sales in these cities fell final month. The Greater Toronto Area noticed a drop of greater than 22 per cent in comparison with a yr in the past, whereas Metro Vancouver skilled a decline of greater than 35 per cent in the identical time interval.

But about 42 per cent of the advisers surveyed by Royal LePage mentioned they thought leisure housing gross sales would improve of their area by the tip of cottage season this yr, in comparison with the identical interval final yr. 

Coast-to-coast fluctuations

Not all of Canada’s largest property markets, nonetheless, are anticipated to see costs climb within the leisure section this yr.

Ontario and Alberta will see the most important leap, with costs forecast to rise 9.four per cent and eight.2 per cent respectively to $535,885 and $770,100.

But the nation’s costliest property market — British Columbia — will see leisure costs decline by almost three per cent to $531,333 as the brand new hypothesis tax on secondary residences retains patrons away, based on the survey.

The Alberta mountain city of Canmore is seeing an upswing within the variety of trip houses being bought. (Jeff McIntosh/Canadian Press)

“With Canada’s fastest growing economy, British Columbia’s vast and varied recreational regions might be expected to lead the country,” mentioned Soper. “That will not be the case in the near-term as new taxes aimed specifically at recreational property owners are expected to weaken markets across the province, driving would-be purchasers to invest elsewhere.”

Alberta residents, who’re one of many largest patrons of leisure property in B.C., are anticipated to look extra at their very own province for trip houses, the examine mentioned, driving up costs in in style areas equivalent to Canmore and different communities within the Rocky Mountains.

Building ‘dream’ houses

Atlantic Canada will see the most important decline within the worth of leisure houses, falling greater than eight per cent from final yr to $228,754.   

“A growing trend is emerging whereby many potential buyers venturing into the market seek out older properties in order to tear them down and build their dream properties, keeping the total price low,” the survey mentioned.

“This is largely due to the region’s excellent affordability, which continues to entice a growing number of prospective retirees into the market.”

Foreign patrons are additionally being enticed by decrease costs in Atlantic Canada. 

About 40 per cent of the advisers surveyed mentioned they count on purchases from overseas patrons to extend within the area, the place they presently account for 5 to 10 per cent of the market.

To evaluate that to the nationwide image, greater than 73 per cent of all advisers surveyed mentioned that overseas possession accounted for lower than 5 per cent of the leisure market of their areas.

Note: “Previously Published on: 2018-06-06 06:00:00, as ‘Canada’s leisure residence gross sales ‘sturdy’ heading into summer season season, survey says

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