Despite an unprecedented year due to COVID-19, including necessary public health restrictions and uncertainty surrounding the economy, Greater Toronto Area REALTORS® reported over 95,000 home
Recreational house prices soar 11.5% as remote work drives demand in cottage country
Dated: January 29 2021
Canada’s recreational property market forecast to increase 8% in 2021
- 86% of recreational property regions are reporting lower inventory as demand outpaces supply
- 54% of recreational property regions are reporting a significant increase in buyers who are purchasing a new primary residence where they will work remotely
According to Royal LePage, year-over-year price appreciation in Canada’s recreational property markets soared during the first nine months of 2020, driven by Canadians’ ability to work remotely. The aggregate price of a single-family home in Canada’s recreational market rose 11.5 per cent to $453,046 and the aggregate price of a condominium rose 9.7 per cent to $280,830. The aggregate price of a waterfront property increased 13.5 per cent to $498,111.
“The pandemic has effected enormous economic and health challenges upon the nation; it has also opened a world of possibility for thousands of Canadians,” said Phil Soper, president and CEO, Royal LePage. “On lake and on sea, upon soaring mountain tops and on expansive farmlands, many Canadians are embracing a bold, new work-from-home doctrine: ‘I can live anywhere in this huge land.’
“In addition to the new wave of pandemic-era buyers, simple demographics have been buoying the exurban market as more and more of the giant Baby Boom generation retire,” Soper continued. “Interest in all types of recreational property is soaring, and I have never seen the number of cottages, cabins, chalets and farmhouses for sale at such a low level relative to demand.”
Eighty-four per cent of Royal LePage recreational property experts, representing 45 of Canada’s most popular recreational markets, reported an increase in buyers who were interested in working remotely from the property. Fifty-four per cent of regions surveyed reported a significant increase in buyers who sought to purchase a primary residence in a recreational market, enabled by their ability to work remotely.
Recreational property markets also saw an uptick in retiree buyers. While retirees are historically a significant buyer demographic for the recreational property market, the pandemic has spurred demand as retirees advance their plans to improve their quality of life by moving to cottage country. Sixty-eight per cent of regions reported an increase in retiree buyers compared to last year.
As a result of the COVID-19 pandemic, the typically brisk spring market was pushed to late summer and early fall with many regions seeing record-breaking autumn sales. As demand outpaced supply, 86 per cent of the regions surveyed reported less inventory than the previous year.
Nationally, Royal LePage is forecasting that the price of a recreational property in 2021 will increase 8 per cent year-over-year.
*Median price data was compiled and analyzed by Royal LePage for the period between January 1, 2020 and September 30, 2020 and January 1, 2019 and September 30, 2019. Data was sourced through local brokerages and boards in each of the surveyed regions. Royal LePage’s aggregate home price is based on a weighted model using median prices.
Ontario Regional Summary
During the first nine months of the year, the aggregate price of a single-family home in Ontario’s recreational property market increased twenty per cent year-over-year to $450,127, while the aggregate price of a waterfront property increased 16.7 per cent to $571,266. The aggregate price of a condominium increased 17.6 per cent to $253,055.
One of Ontario’s most sought-after destinations for recreational properties is Muskoka. Bob Clarke, real estate professional, Royal LePage Lakes of Muskoka says the region has been booming for the last several years, and COVID-19 has only amplified that demand.
“Retiring baby boomers have been putting upward pressure on prices and reducing inventory for the last few years. Retirees are now finding themselves competing against remote workers. Both demographics have seen their savings grow through less travel and entertainment during the pandemic,” said Clarke. “We are also seeing an increase in current Muskoka owners who are looking to purchase larger properties, as their children have returned after job loss or the ability to work remotely. The most common question used to be ‘is the property West-facing?’ Now my clients’ biggest concern is internet quality.”
Most regions surveyed in Ontario reported an increase in buyers seeking a property where they could work remotely. Seventy-three per cent of the surveyed regions saw a significant increase in buyers seeking to purchase a recreational property as a primary residence. While retirees are historically a sizable demographic of recreational property buyers, 83 per cent of the surveyed regions reported an increase in retirees looking to purchase during the first nine months of 2020 compared to the previous year.
Royal LePage is forecasting that the price of a recreational home in Ontario will increase 10 per cent in 2021.
For Recreational Property Price Data (43 regions), click here: rlp.ca/Recreational_Property_Prices2020
The Royal LePage Recreational Property Report compiles insights, data and forecasts from 53 markets. Median price data was compiled and analyzed by Royal LePage for the period between January 1, 2020 and September 30, 2020 and January 1, 2019 and September 30, 2019. Data was sourced through local brokerages and boards in each of the surveyed regions. Royal LePage’s aggregate home price is based on a weighted model using median prices.
About Royal LePage
Serving Canadians since 1913, Royal LePage is the country’s leading provider of services to real estate brokerages, with a network of over 18,000 real estate professionals in over 600 locations nationwide. Royal LePage is the only Canadian real estate company to have its own charitable foundation, the Royal LePage Shelter Foundation, dedicated to supporting women’s and children’s shelters and educational programs aimed at ending domestic violence. Royal LePage is a Bridgemarq Real Estate Services Inc. company, a TSX-listed corporation trading under the symbol TSX:BRE. For more information, please visit www.royallepage.ca
About Akbar Mubarak
My relationship approach to real estate is what my clients love and what differentiates me from the rest. I take the time to listen to and communicate with you to identify your needs and wants and to help you focus on both the business and the emotional issues that are important to you. We will make the whole process smooth, fun and memorable.
I am as passionate about helping first-time buyers or relocating families find their first home in the neighbourhood as I am about helping repeat clients and investors fulfill their goals. Having lived in the Toronto area for many years, I am intimately familiar with the Annex, Yorkville, Dufferin Grove, Harbor Front, Distillery District and surrounding areas as these are the neighborhoods where I have lived, owned property, work and play, but if you have another area of interest in the GTA, let’s talk!
A strong negotiator and experienced marketer, I work both hard and smart to provide you with the right information to make you feel comfortable in making an informed and feel good decision. I have a keen eye for design and decorating, and can quickly see a home's potential that may have been overlooked. I am often able to suggest small changes that can have a big impact on both buyers and sellers looking to get the most value for their home.
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My relationship approach to real estate is what my clients love and what differentiates me from the rest. I take the time to listen to and communicate with you to identify your needs and wants and to ....
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