It could be a cottage on the lake, a chalet at the foot of a favourite ski hill, or even a cabin in the remote northernmost part of your province. Interest in buying a recreational property or vacation home is increasing amongst different buyer groups in Canada, and that trend is one that real estate industry professionals would be wise to take note of.
Here at Real Estate Leads, our online real estate lead generation system is a proven effective way for realtors to get more seller leads, and buyer leads too. In particular as it relates to buyer leads, realtors in less-urban areas of the country will want to take particular note of this trend as it may be that greater numbers of prospective buyers will be looking for a real estate professional to assist them with buying a recreational property in rural Canada.
RE/MAX is one of Canada’s leading real estate agencies, and according to their latest recreational property report for 2017, 43% of Canadians would consider buying a recreational property in the next decade. Interestingly, 28% of them with children under the age of 18 would consider selling their primary residence to help finance that purchase, suggesting that it’s not just financially sound soon-to-be retirees or investors that are weighing the market for these types of properties – even young families are increasingly determined to own a cottage or cabin and are willing to explore options to turn that dream into a reality.
This is primarily a reflection of real estate prices in areas of Canada remaining high, and as a result more of these prospective buyers are looking into unique financing options like fractional ownership in a shared property, purchasing a recreational property with a friend, or even selling their primary residence, downsizing, and putting the differential equity into a cottage or cabin.
Equally interesting to note is that recreational properties are goal for Millennials too. Yes, the thought of having a getaway isn’t exclusively appealing to the more secure generations, and while these young people may be facing much more in the way of career insecurities and the like they are still being smart and creative about how they can afford a recreational property.
The same Re/Max report pointed out above found 65% of Millennials are interested in purchasing a cottage, cabin, or chalet in the next decade, and 39% would use the property as an investment and list it on rental sites to help pay down the financing. Naturally, their interests are tied to locations that facilitate lifestyle more so than older buyers who are looking more for spots that are scenic and less busy.
For example, young Vancouverites who accept there’s no way they could get themselves a chalet in Whistler may be taking especial note of the upcoming redevelopment of Hemlock Mountain Resort just past Mission, about a 2 hour drive from Vancouver.
Boomers Want to Get Away Too
Not surprisingly, the baby boomer generation is tapping into equity to fund their own recreational property purchases. Large numbers of near-retirees and baby boomers nearing retirement are putting the equity they received from sold homes in cities like Toronto and Vancouver into the purchase of a recreational property. Significant price appreciation (and that may well be putting it mildly) in those regions has made recreational property ownership a relatively affordable option for many retirees. Accordingly, we’re seeing price appreciation in popular recreational property markets such as Whistler in B.C. and Haliburton in Ontario.
The Places to Be
Other hotspots for recreational property purchase in Canada from Coast to Coast include:
- Tofino and Ucluelet, BC ‘Long Beach’
- Squamish, BC
- Whistler, BC
- Kelowna, BC
- Shuswap and North Okanagan, BC
- South Okanagan, BC
- Canmore, AB
- West Lakes of Edmonton, AB
- Sylvan Lake, AB
- Turtle Lake, SK
- Qu’Appelle Valley, SK
- Lake Winnipeg, MB
- Thunder Bay, ON
- Manitoulin Island & French River, ON
- Lake Huron, ON
- Muskoka & Haliburton, ON
- Laurentians, QC
- Charlevoix, QC
- Shediac, NB
- North & South Shores, PEI
- East Coast, NFLD
The priciest of those popular recreational property locations in Canada? Right there at the top of the list, with the median price for a waterfront home in Ucluelet or Tofino being between 580 and 660k. The most inexpensive vacation property in Canada? You’ll find that in Newfoundland’s East Coast, at an average of 175k for a waterfront property that – while much less expensive – is every bit as pleasant and scenic at the much more expensive view of the Pacific Ocean on the other side of the country.
All interesting to note, and particularly so for realtors who want to have their thumb on the pulse of significant changes to the buyer / seller cross-sections of the public. As always, being put in touch with these recreational property buyers and sellers is just an opportunity, and what you do with it is up to you. Signing up with Real Estate Leads here is a solid choice, as you’ll receive qualified online-generated leads delivered exclusively to you and for your specific protected region of the country.
Who knows, from there you might find yourself being the perfect matchmaker between homeowners and their new ‘fun time’ home away from the city. Summertime’s here, and we imagine you know what it’s like to be itching to get out of town. Make it happen!