RE/MAX RECREATIONAL PROPERTY REPORT 2014
The 2014 RE/MAX Recreational Report found that national recreational property sales and listings have rebounded from a slow start caused by the late spring and cold winter experienced in many markets throughout the country. Across Canada the recreational property market is showing healthy activity that should lead to modest increases in sales and prices in most markets through the rest of the year.
Two groups of buyers are driving the majority of recreational properties sales in Canada. The first is made up of families with younger children, who have built up equity in their primary residence and are using that money to purchase a vacation property. The second group is made up of near or recent retirees who have purchased a recreational property with a plan to use it as a primary residence and launching pad for travel down the road.
Canada’s hot residential real estate market in urban centres has had a spillover effect on recreational property sales. This is particularly true in markets within a two-hour drive of the country’s large urban centres, where price appreciation has allowed homeowners to use equity gains in their primary residence to purchase a second home for recreational use.
The way buyers are using their recreational properties is changing. While in the past, properties were largely used for weekend getaways and a week or two of summer vacationing, today many are purchasing a property from which they can work throughout the summer. This is being driven by advances in technology as well as longer daily commute times that many are eager to avoid. Furthermore, a majority now see their recreational property as a four-season vacation option, rather than just a summer retreat. Winter activities such as skiing, snowmobiling and ice fishing, as well as cottage country hockey tournaments are all influencing this change.