Rebound follows post-pandemic downturn
The Canadian recreational property market is on the verge of recovery this year, with a projected 5% hike to prices on average.
This is according to a new report from Royal LePage, which noted that demand is now rebounding after it had dropped from the peak seen during the COVID-19 pandemic.
As such, the median price for a single-family home within the sector is now expected to climb to $678,930, compared to $646,600 in 2023.
“Inflation reared its ugly head, interest rates soared and the economic downturn that followed pushed cottage, cabin and chalet prices off those pandemic peaks, yet the fundamental demand for recreational living has not abated,” said Royal LePage CEO Phil Sopher in a statement obtained by Yahoo Finance.
Ontario to see biggest price hike in cottage market
Regionally, Ontario is poised for the most significant price increase in 2024, according to the report, with its media price expected to rise 8% to $662,148.
In 2023, median prices in the province were down 5.2% for single-family homes and 8.2% for waterfront properties, which Royal LePage broker John O'Rourke attributed to the market dampening due to limited inventory.
In British Columbia, cottage prices are set for a 5% to a median of $1.14 million. Alberta, meanwhile, should see prices go up 4% to a median of $1.29 million.
British Columbia’s cottage prices anticipated to rise by 5% to $1.14 million and Alberta’s by 4% to $1.29 million.
The recreational markets in Atlantic Canada are also expected to see a 4.5% increase to $288,002, while Quebec’s prices are forecasted to grow 2% to $404,838.
The Prairies are estimated to experience a modest 0.5% increase, with median prices expected to hit $286,928.
What are your thoughts on developments happening in Canada’s cottage market? Feel free to comment below.
