Recreational homes market has seen healthy year-over-year growth
Investors in the recreational housing market have seen the value of their assets grow in most regions according to a new report.
The RE/MAX survey released Tuesday shows that 74% of markets surveyed posted a year-over-year increase in prices with the median price gaining 7% across the board.
Three in ten respondents said that their main reason for buying a recreational home was investment (33% among millennials) while 20% said it was for their retirement.
The recreational homes market differs from the current state of the wider Canadian housing market which has divergence between eastern and western markets.
“The recreational market is strong across much of the country except in the Prairies, where the region's softer economy has kept demand low," says Christopher Alexander, Executive Vice President and Regional Director, RE/MAX of Ontario-Atlantic Canada. "And ultimately the reasons for the contrast between urban and recreational markets are diverse. Activity is being driven by strong employment and economic conditions, but it's also being influenced by Millennial buyers who find themselves squeezed out of the less affordable urban market."
BC, ONtario lead the gains
British Columbia posted an 8% year-over-year rise in recreational home prices.
Those with homes in the Tofino market have seen a 35% increase in median price, unless they have a waterfront property with an eyewatering 80% increase in median price.
Ontario also posted an 8% gain with water-access showing a 35% gain.
The Prairies though, saw a 3% year-over-year decline in median price.
"There is little doubt that economic factors in the Prairies have affected demand in the recreational market," says Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. "At the same time, BC's economy is still going strong and has experienced an increased interest in its recreational market in recent times."
