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Wednesday, May 22, 2013 - Canadian recreational property market buoyed by low interest rates

50% of Canadians feel prices will increase
By Mario Toneguzzi, Calgary Herald May 16, 2013

CALGARY — Continued low interest rates are having a positive impact on the Canadian recreational real estate market, says a survey by Royal LePage.

The survey, which polled Canadians across the country who either currently own or intend to purchase a recreational property within the next five years, found that 82 per cent say interest rates will influence their decision to purchase a recreational property — and 58 per cent feel added urgency to buy a recreational property while interest rates are low.

The survey also revealed that 50 per cent indicated that prices will increase and 32 per cent said they will stay the same.

“Despite financial and economic uncertainty, or perhaps because of it, we have found that the enduring value of recreational properties is widely-recognized by Canadians,” said Phil Soper, president and chief executive of Royal LePage Real Estate Services. “In contrast to our large urban centres, where home prices shot up in recent years before rapidly cooling in 2013, the recreational property market has remained remarkably stable and resilient.”

Royal LePage said the average price range for a standard waterfront, land access cottage of 1,000 square feet, three bedrooms and on a 100-foot lot, is $110,000 to $650,000 in Alberta while the national average is $177,500 to $625,500.

Royal LePage said properties on a lake are by far the leading property type, with almost half (41 per cent) of those planning to buy indicating that this is their first choice, followed by a property in the mountains or woods(17 per cent) and a condominium in a recreational community (13 per cent).

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posted in News at Wed, 22 May 2013 15:48:15 +0000

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