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69% of leisure property specialists report stable demand in their region
Published on November 14, 2024 • 2 minutes reading time
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While home sales have fallen this year in key ski resorts in Ontario, Alberta and most of British Columbia, Quebec has already seen a significant increase in demand. Photo from Breckenridge Ski Area
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Royal LePage's latest Winter Recreational Property Report offers an optimistic forecast for 2025, predicting a 7.5 percent increase in ski chalet prices. After two years of limited activity, the report suggests that improved credit conditions and renewed buyer confidence will fuel a comeback for seasonal recreational properties across Canada. While home sales have fallen this year in key ski resorts in Ontario, Alberta and most of British Columbia, Quebec has already seen a significant increase in demand.
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The national average price for single-family homes in ski resorts fell a modest 0.4 percent, mirroring similar trends in urban properties. Despite sluggish sales activity in many leisure regions, Phil Soper, managing director of Royal LePage, pointed to the sector's underlying strength.
“This is a testament to the resilience of the winter leisure segment, even under pressure from the high interest rate environment in 2023-2024.” He further predicted that the market would rebound in 2025. “With four rate cuts now under our belt and even more likely to come, the winter leisure market will come back to life.”
Across the country, 69 percent of Royal LePage recreational real estate specialists reported stable demand in their regions, and 63 percent saw an increase in inventory compared to 2023. However, 75 percent of specialists noted longer sales times and more properties remaining on the market. High borrowing costs have deterred many would-be buyers, but Soper remains confident the market will recover: “With the Bank of Canada expected to make further cuts…consumers will be increasingly confident about pulling the trigger on that winter cottage or purchase.” of a mountain chalet.”
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According to Royal LePage, 38 percent of regional specialists also observed a noticeable increase in inquiries following the announcement of capital gains tax changes that came into effect on June 25.
Unlike urban buyers, leisure property buyers tend to have equity tied up in their primary residence, making interest rates particularly important in their decision-making. Soper explained: “Although some buyers are paying in cash or using the equity in their primary residence, many are still watching interest rates closely as an indicator of the health of the economy and whether it is the right time to buy their dream vacation home.” When borrowing costs Buyer confidence typically increases, encouraging those with equity in their primary residence to take action.
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However, Soper also points out that additional factors such as wildfires in Jasper National Park in Alberta are contributing to today's market dynamics: “Recent capital gains tax changes and frequent climate events… are factors that buyers in today's market are also considering.”
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