Real eState

A bumpy real estate market will rattle renters too – The Globe and Mail

Published

8 months ago

July 22, 2022

Megan Johnson

A duplex for sale in Vancouver on July 6.JENNIFER GAUTHIER/The Globe and Mail

Vancouver property sales have slowed, as sellers are less likely to list their homes. But prices are holding fairly steady in the country’s priciest market. That means for renters, the pressure on the rental market is higher than ever, exacerbated by interest rate hikes and increased demand. And that pressure could intensify now that landlords have an opportunity to increase rents.

Vancouver Tenants Union advocate Aïssa Aggoune said there’s a general anxiety among renters who are wondering if they will be able to afford their rents in the following months.

“The anxiety is caused by numerous factors which are compounding the already existing housing crisis and turning it into a real nightmare for the local families who live and work in Vancouver,” Mr. Aggoune said.

New legislation introduced a year ago allows an additional rent increase to recoup costs of capital expenditures on apartments, such as updates to electrical and mechanical systems, improving security and energy use. Mr. Aggoune said the new increases have largely gone under the radar. He’d like to see the increases suspended until inflation comes down.

“The process of fighting these rent increases is very long and exhausting for most tenants who do not even fully understand the legislation,” Mr. Aggoune said.

Rents on newly listed apartments have soared in the last year. According to Toronto-based HouseSigma real estate platform, the median rent for all Metro Vancouver rental listings on the Multiple Listing Service (MLS) went up from $2,500 in June, 2021 to $3,400 in June, 2022.

Realtor and HouseSigma spokesperson Hao Li said there is a key relationship between sales and rentals because when the sales market slows, people stay in rental apartments, increasing demand. As well, those who are experiencing interest rate hikes as their mortgages renew will pass the cost along to renters if they can.

According to HouseSigma A.I. generated data (which uses MLS and real estate board statistics), the median price of homes in Delta dropped by 28.3 per cent between February and June, followed by Surrey at a 23.4 per cent decrease and Maple Ridge about the same. Vancouver home prices dropped 11.7 per cent and West Vancouver by 11.4 per cent. North Vancouver only saw a 5.6 per cent drop. Overall, Metro Vancouver saw a 13.5 per cent decrease in median home price.

A broader perspective, such as that provided by the Canadian Real Estate Association, which looks at the benchmark price over a year, shows a far slower adjustment.

In April, 2022, the benchmark price for all homes in Greater Vancouver reached $1,264,700, according to the Canadian Real Estate Association. In April, 2021, that price was $1,099,300, a 15-per-cent increase.

Today it’s at $1,235,900, a slight decrease of 2.28 per cent – but still much higher than the benchmark price of June, 2021. Benchmark price is the estimated value of a home with typical characteristics.

“Home prices have eased in parts of British Columbia, although the B.C. provincial totals have been propped up by mostly static prices in Greater Vancouver,” said the CREA release.

Mr. Li, who is based in Vancouver, said prices in Vancouver have not been immediately impacted by the higher interest rate, which recently went up a full percentage point to 2.5 per cent. Some suburbs are likely hit harder because of the pandemic phenomenon that saw first-time buyers moving away from the city. That trend has eased up. Vancouver prices are staying strong because instead of reducing their prices, would-be sellers are not selling.

“We’re not yet seeing a significant price drop for the Vancouver area, no,” Mr. Li said. “Sellers know that if they put up their house up for sale now they can’t use the usual tactic, which is to list low and hoping everybody will bid high. Now, everybody’s mindset has shifted into, ‘whatever price you put out, people are more likely to offer something less, rather than bidding more.’ So they are less likely to want to sell their properties, so less inventory.”

Cancellations of listings in Greater Vancouver have gone up by 139.2 per cent since February, according to HouseSigma data.

Real estate agent Patricia Houlihan said some of her clients know it’s better to buy when the market slows, as opposed to the fear-of-missing-out phase during the beginning of the pandemic. Ms. Houlihan purchased her own home in 2008 just at the start of the economic downturn. There were fewer buyers and offers were subject to sale. The price of her home went down, but then it went back up.

“People who were fighting to buy houses and putting in stupid prices, now they are saying, ‘the market is going down, I’m going to wait.’ Really? Because you can now buy with subjects, and we don’ t get the unicorns right now,” she says, referring to that one buyer who will throw “crazy” money at a property.

”Right now is a great opportunity for buyers, because they can get something and get an inspection and think for a few days, and breathe. But it’s also good for sellers, because prices have gone down less than 2 per cent.”

She’s still seeing multiple offers. There are buyers who aren’t affected by the rate increase, and there are buyers who are in a panic to use their lender rate hold before it ends.

“The rates are still very, very low, as long as people can afford it. I just think the market has not changed enough for all the reaction that is happening.”

Grant Bazian’s job is to be on the lookout for signs of financial distress. Mr. Bazian is president of MNP’s insolvency practice, the largest in Canada, which handles corporate and consumer insolvency such as bankruptcies and liquidations.

An MNP consumer debt index released in April, prepared by Ipsos, showed that British Columbians had the largest drop in disposable income out of all Canadians, spending $269 less than they had a few months previously.

Not helping matters is that Vancouver has some of the highest dollar mortgages in Canada, says Mr. Bazian, making mortgage-holders particularly sensitive to any fluctuation. This week MNP released more bleak news: 27 per cent of Canadians are cutting back on essentials, such as food, utilities and housing costs.

Mr. Bazian was surprised when the Bank of Canada increased its benchmark rate the most it has since 1998, bringing the overnight rate to 2.5 per cent. But such a big jump tells him that there must be serious concerns. The younger generation who’ve only ever known a low interest rate will be particularly alarmed, he said.

“A 100 basis point jump, that’s something else. I wasn’t expecting that. … I think they are doing their best to control [inflation]. I don’t know how effective it’s going to be, because there are other elements to inflation, other than supply and demand.”

The biggest concern for policy makers is affordability for the average Canadian.

“I think it’s the inability for the average Canadian to afford the necessary household goods, that’s what it comes down to – to afford their mortgage payments, the basic necessities.

“It shows me consumer confidence and their financial well being are very low. And I think there is a lot of anxiety and stress with families, and a lot of them are uncertain as to what to do and how rising interest rates affects their financial well being.”

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Real eState

Canada's recreational real estate rush comes to a close: Prices expected to soften amid waning activity – Yahoo Canada Finance

Published

4 hours ago

March 28, 2023

Megan Johnson

National aggregate house price forecast to dip 4.5% in national recreational market in 2023 as sidelined buyers wait for more inventory, economic stability

Highlights:

The aggregate price of a single-family home in Canada’s recreational property market increased 11.7% year-over-year to $619,900 in 2022
Nationally, the aggregate price of a single-family waterfront and condominium property increased 9.5% and 16.6% year-over-year, respectively, in 2022
Condominiums in Quebec’s recreational property market recorded the highest provincial year-over-year aggregate price appreciation in 2022, rising 22.3%
Alberta is the only provincial recreational market expected to see price appreciation in 2023 (+0.5%)
Quebec and Ontario expected to see the largest recreational property price decreases in 2023, with forecasted declines of 8% and 5%, respectively, compared to 2022
More than half (57%) of recreational property experts across the country reported lower inventory than last year in their respective regions, and 65% reported reduced inventory compared to typical pre-pandemic levels

TORONTO, March 28, 2023 /CNW/ – According to Royal LePage, the aggregate price of a single-family home in Canada’s recreational regions is forecast to decrease 4.5 per cent in 2023 to $592,005, compared to 2022, as activity in the market wanes. This is due to reduced demand as a result of economic uncertainty and a lack of available housing stock, which has helped to keep prices stable. Despite a modest decrease expected this year, the national aggregate price would remain more than 32 per cent above 2020 levels, after two years of double-digit price gains in the country’s recreational real estate market.

With the exception of Alberta, which is expected to see a 0.5 per cent increase, all of Canada’s provincial recreational markets are forecast to see a decrease in single-family home prices in 2023. The province of Quebec is forecasting the greatest price depreciation, at -8.0 per cent.

In 2022, the aggregate price of a single-family home in Canada’s recreational property regions increased 11.7 per cent year-over-year to $619,900. This follows year-over-year price gains of 26.6 per cent in 2021. When broken out by housing type, the aggregate price of a single-family waterfront property increased 9.5 per cent year-over-year to $736,900 in 2022, and the aggregate price of a condominium rose 16.6 per cent to $432,000 during the same period.

“After two years of relentless year-round competition, Canada’s recreational property markets have slowed and returned to traditional seasonal sales patterns,” said Phil Soper, president and CEO, Royal LePage. “While interest rate hikes have less of an impact on the recreational market than homes in urban settings, because families typically put more money down and borrow less, general consumer inflation combined with a severe lack of inventory has dampened sales activity. Buyers who are active in today’s market appear willing to wait for the right property – a sharp contrast to what we experienced during the pandemic.”

While low inventory poses a challenge for buyers looking for that special cabin or lakeside cottage, the coinciding contraction in demand has resulted in a return to more normal market conditions.

Return to balance: Supply and demand decline in recreational regions

According to a survey of more than 200 Royal LePage recreational real estate professionals across the country,^¹ 57 per cent of respondents reported less inventory this year, compared to last year. At the same time, 51 per cent of respondents said they have witnessed less demand for recreational properties in their region, compared to this time last year. When compared to typical pre-pandemic levels, 65 per cent of recreational property experts nationally reported less inventory, while a majority reported similar (38%) or more (38%) demand.

“Recreational homebuyers tend to purchase for leisure and life-enriching purposes. Call it a want versus a need,” added Soper. “Unlike many city buyers who may need to acquire a principal residence quickly, secondary home purchasers often have the benefit of time to find the right property for their specific needs.”

Nationally, 28 per cent of recreational property experts surveyed said that the trend of homeowners moving back to urban or suburban communities after relocating to their region full-time during the pandemic is somewhat common; 56 per cent of experts reported this trend was not common in their market. Atlantic Canada, a pandemic relocation hotspot, recorded the highest percentage of experts who said the return to urban or suburban areas is somewhat common in their region, at 46 per cent.

“During the pandemic, with offices closed and people working from home, Canadians discovered that a recreational property could double as a principal residence, complete with capital gains exempt status,” added Soper. “With high-speed internet now readily available in many rural markets, families flocked to recreational regions to put extra space between themselves and their neighbours and to take advantage of nature; particularly when cultural and sporting venues, shops and restaurants in cities were closed. Many urban businesses now require employees to be in the office at least a few days a week, making long commutes challenging. For many, living in cottage country full-time has lost its romantic shine, meaning we are back to viewing the cottage, cabin and chalet as a weekend and summer escape from urban living.”

¹ A national online survey of 202 brokers and sales representatives serving buyers and sellers in Canada’s recreational property regions. The survey was conducted between March 1, 2023 and March 18, 2023.

Royal LePage 2023 Spring Recreational Property Price Forecast and 2022 Price Data Chart (national and regional): rlp.ca/table_2023springrecreationalpropertyreport

Atlantic Canada

In 2022, the aggregate price of a single-family home in the East Coast’s recreational property market increased 17.2 per cent year-over-year to $279,900, compared to 2021. During the same period, the aggregate price of a single-family waterfront property increased 9.1 per cent to $388,500, while the aggregate price of a condominium increased 18.6 per cent to $345,000.

According to a Royal LePage survey of recreational property experts, 62 per cent of respondents in Atlantic Canada reported less inventory this year compared to last year, and 69 per cent reported less inventory compared to typical pre-pandemic levels. Demand for recreational properties in the region has also decreased significantly. Forty-six per cent reported less demand this year than last year.

“Parties on both sides of the transaction are waiting for a better deal – recreational buyers are sitting on the sidelines waiting for more inventory to become available, while sellers are holding out for higher offers and competitive bids. But, the multiple-offer scenarios and homes selling over-asking are not as common today as they were during the pandemic boom,” said Corey Huskilson, sales representative, Royal LePage Atlantic in South Shore, Nova Scotia. “As we enter the spring market, I expect activity to pick up but prices to stay stable, as supply and demand remain relatively balanced.”

During the pandemic, Canadians from all across the country who were forced to work remotely flocked to Atlantic Canada for the opportunity to enjoy the Maritime lifestyle and own a home at a much more affordable price point than in major cities. According to the survey, 46 per cent of recreational property experts in Atlantic Canada said that the trend of homeowners moving back to urban or suburban communities after relocating to their region full-time during the pandemic was somewhat common; an additional 8 per cent said it was very common. Meanwhile, an equal number of respondents (46%) said that this trend was not common in their area.

“The majority of recreational property buyers in Avalon Peninsula are either looking for a retirement property, or are locals moving back from other parts of the country who want a secondary property to enjoy in their downtime,” said Tim Crosbie, broker and owner, Royal LePage Property Consultants in St. John’s, Newfoundland. “Home prices have risen here over the past year, as have interest rates, which has given some buyers reason to halt their purchase plans. While most secondary homebuyers looking in the region are motivated to find a property that fits their specific needs, they are prepared to wait for the right home to fall within their financial reach.”

Crosbie noted that the reduced buyer demand is a result of higher interest rates, and that a reduction in borrowing costs would likely encourage more purchasers back into the buying pool.

The aggregate price of a single-family home in Atlantic Canada’s recreational regions is forecast to decrease a modest 3.0 per cent in 2023 to $271,503.

Royal LePage 2023 Spring Recreational Property Price Forecast and 2022 Price Data Chart (national and regional): rlp.ca/table_2023springrecreationalpropertyreport

Quebec

In 2022, the aggregate price of a single-family home in Quebec’s recreational property market increased 16.1 per cent year-over-year to $373,400, compared to 2021. During the same period, the aggregate price of a single-family waterfront property increased 17.3 per cent to $480,200, and the aggregate price of a condominium increased 22.3 per cent to $341,900.

According to a Royal LePage survey of recreational property experts, 53 per cent of respondents in the province of Quebec reported less inventory this year compared to last year, and 79 per cent reported less inventory compared to typical pre-pandemic levels. Demand for recreational properties in the region has also decreased significantly. Seventy-six per cent reported less demand this year compared to last year, and 35 per cent reported less demand than a typical pre-pandemic year.

“We are in a two-speed market with sharply contrasting scenarios,” said Éric Léger, chartered real estate broker, Royal LePage Humania. “On one hand, the inventory of properties for sale is steadily increasing and so is the number of motivated sellers willing to lower their asking price. But on the other hand, we’re seeing multiple-offer scenarios with properties that are ideally located, well-maintained and listed at a fair price,” he continued. “It can be challenging for consumers to stay on top of the market trends because we’re still in a transition. Over the next few months, owners of secondary homes in the region may need to rethink their priorities as their mortgages come up for renewal at substantially higher interest rates.”

Léger noted that the spring market in the area may be less buoyant this year because of current economic uncertainty. However, demand in the lower price ranges will remain strong.

According to the survey, 26 per cent of recreational property experts in Quebec said that they have witnessed a slight increase in buyers who intend to use their recreational property for rental purposes in their region compared to last year, while 18 per cent of respondents reported a significant increase in this trend.

“The real estate market in the Eastern Townships today is vastly different from what we saw during the past three years,” said Véronique Boucher, residential real estate broker, Royal LePage Au Sommet. “Buyers are more patient; they’re negotiating and they’re taking time to carefully assess their needs and their financial capacity before taking the plunge. Conditional offers to purchase, which were practically unheard of during the pandemic real estate boom, made a big comeback in the latter half of 2022, a sign of a much more balanced and fair market.

The aggregate price of a single-family home in Quebec’s recreational regions is forecast to decrease 8.0 per cent in 2023 to $343,528.

Royal LePage 2023 Spring Recreational Property Price Forecast and 2022 Price Data Chart (national and regional): rlp.ca/table_2023springrecreationalpropertyreport

Ontario

In 2022, the aggregate price of a single-family home in Ontario’s recreational property market increased 7.3 per cent year-over-year to $634,800, compared to 2021. During the same period, the aggregate price of a single-family waterfront property increased 8.9 per cent to $1,006,600, while the aggregate price of a condominium increased 15.1 per cent to $510,900.

According to a Royal LePage survey of recreational property experts, 61 per cent of respondents in Ontario reported less inventory this year compared to last year, and 59 per cent reported less inventory compared to typical pre-pandemic levels. Demand for recreational properties in the region has also decreased significantly. Fifty-two per cent reported less demand this year compared to last year, however 39 per cent said demand was higher than a typical pre-pandemic year.

“After two years of historically high pandemic-driven sales, activity in the recreational market came to a comparative standstill in the last half of 2022. Rising interest rates, buyer fatigue, and lack of inventory all played a role,” said John O’Rourke, broker, Royal LePage Lakes of Muskoka. “Early signs this spring point to a more balanced market where inventory levels and sales are trending in line with historical norms. Traditional cottage buyers – end users that plan on enjoying their property – are still engaged and seem eager to jump back into a market in which they are not competing with the investment-focused buyer; a prominent player during the pandemic boom.”

According to the survey, 35 per cent of recreational property experts in Ontario said that the trend of homeowners moving back to urban or suburban communities after relocating to their region full-time during the pandemic was somewhat common. Forty-nine per cent of respondents said this trend was not common in their area.

“Buying a recreational property is like a marathon, not a sprint. Secondary homebuyers in Rideau Lakes have the luxury of time and are looking for a very specific lifestyle property. A shortage of recreational homes makes this process even more difficult,” said Pauline Aunger, broker of record, Royal LePage Advantage Real Estate. “Due to the high demand for renovation services, recreational buyers today are looking for a move-in ready property that requires less work. This includes high-speed internet and good cell service for those who want peace of mind or the option to work remotely. As we head into the spring months, we are expecting market activity to pick up, although not at the levels experienced over the last two years.”

While home prices in a select few recreational markets in Ontario, including the ever-popular Southern Georgian Bay area, may increase marginally over the next year, a decline in activity overall is expected to dampen price growth.

The aggregate price of a single-family home in Ontario’s recreational regions is forecast to decrease 5.0 per cent in 2023 to $603,060.

Royal LePage 2023 Spring Recreational Property Price Forecast and 2022 Price Data Chart (national and regional): rlp.ca/table_2023springrecreationalpropertyreport

Prairies

In 2022, the aggregate price of a single-family home in the Prairie provinces’ recreational property market increased 6.0 per cent year-over-year to $271,300, compared to 2021. During the same period, the aggregate price of a single-family waterfront property increased 5.6 per cent to $507,000.

According to a Royal LePage survey of recreational property experts, 56 per cent of respondents in the Prairies reported less inventory this year compared to last year, and more than three quarters (78%) of respondents said that demand levels are comparable to last year.

“Business is faring as usual in our recreational markets. Demand and inventory are proportional to one another, creating balanced market conditions. Reduced supply has kept recreational property prices buoyant,” said Lou Doderai, broker and owner, Royal LePage Icon Realty, in Prince Albert, Saskatchewan. “The North Central recreation areas are only a couple hours drive from two of the province’s major urban areas, meaning many of our buyers are locals looking for secondary residences that provide an escape for the weekend. Although higher interest rates have halted some purchasers’ decisions to buy a property – at least temporarily – I expect we’ll see a modest pick up in market activity once the warmer weather arrives.”

According to the survey, 44 per cent of recreational property experts in the Prairies said that they have witnessed a significant increase in buyers who intend to use their recreational properties for rental purposes in their region, compared to last year. An additional 33 per cent of respondents reported a slight increase in this trend.

“The recreational market in Lac du Bonnet is the healthiest it’s been in 15 years. The pandemic caused more Manitoba buyers to purchase recreational properties in-province as opposed to south of the border; a level of demand that has caused the average days on market to shrink considerably,” said Rolf Hitzer, broker and owner, Royal LePage Top Producers Real Estate, in Winnipeg, Manitoba. “More than ever, buyers crave a getaway to the countryside, a desire that was intensified by the pandemic and increased demand for all-season properties. As market conditions continue to normalize, I expect to see an active, but not overheated, spring and summer recreational buying season.”

The aggregate price of a single-family home in the Prairies’ recreational regions is forecast to decrease a modest 3.0 per cent in 2023 to $263,161, as sidelined buyers remain cautious amid evolving economic conditions.

Royal LePage 2023 Spring Recreational Property Price Forecast and 2022 Price Data Chart (national and regional): rlp.ca/table_2023springrecreationalpropertyreport

Alberta

In 2022, the aggregate price of a single-family home in Alberta’s recreational property market increased 13.3 per cent year-over-year to $1,165,500, compared to 2021. During the same period, the aggregate price of a single-family waterfront property decreased 5.0 per cent to $641,900, while the aggregate price of a condominium increased 17.7 per cent to $646,000. As a large and popular recreational destination, Canmore’s real estate market has a significant impact on prices in Alberta, with its proximity to Banff National Park and luxury properties.

According to a Royal LePage survey of recreational property experts, 59 per cent of respondents in Alberta reported less inventory this year compared to last year, and 71 per cent reported less inventory compared to typical pre-pandemic levels. Meanwhile, demand for recreational properties in the region has remained stable. Thirty-five per cent of respondents reported similar demand this year compared to last year, and an additional 35 per cent reported more demand.

“Buyer demand for recreational properties in Canmore continues to be driven by retirees and Albertans living in the surrounding cities, as well as residents from Ontario and Quebec. As Canmore attracts many cash buyers, higher interest rates have had little impact on this market, a factor that has kept prices stable,” said Brad Hawker, associate broker, Royal LePage Solutions. “Low supply continues to be a challenge, an issue that has been underscored by the lack of new construction projects. This has caused many buyer hopefuls to sit on the sidelines, waiting for their ideal property to become available.”

According to the survey, 65 per cent of recreational property experts in Alberta said that the trend of homeowners moving back to urban or suburban communities after relocating to their region full-time during the pandemic was not common, another factor contributing to the supply shortage.

“We are experiencing a lack of turnover in the Wabamun Lake and Lac Ste. Anne markets. Coveted recreational homes, especially those on the water, are more likely to be passed down through the generations, a trend that is exacerbating the region’s low level of supply,” said Tom Shearer, broker, Royal LePage Noralta Real Estate. “Those shopping for a recreational home are often locals from nearby cities who already have a personal connection to the area and are looking for a retreat to enjoy with family on the weekends and in the summer months. Unlike a primary residence, most buyers shopping for a vacation home can afford to wait for the perfect property to present itself.”

The aggregate price of a single-family home in Alberta’s recreational regions is forecast to increase modestly by 0.5 per cent in 2023 to $1,171,328. This is the only region in Canada forecasting price growth over the next year.

Royal LePage 2023 Spring Recreational Property Price Forecast and 2022 Price Data Chart (national and regional): rlp.ca/table_2023springrecreationalpropertyreport

British Columbia

In 2022, the aggregate price of a single-family home in British Columbia’s recreational property market increased 12.9 per cent year-over-year to $1,071,300, compared to 2021. During the same period, the aggregate price of a single-family waterfront property increased 5.6 per cent to $1,065,000, while the aggregate price of a condominium increased 14.3 per cent to $441,400.

According to a Royal LePage survey of recreational property experts, 49 per cent of respondents in British Columbia reported less inventory this year compared to last year, and 71 per cent reported less inventory compared to typical pre-pandemic levels. Demand for recreational properties in the region has also decreased significantly. Forty-nine per cent reported less demand this year compared to last year.

“Like many recreational markets across the country, Pemberton and Whistler continue to experience low inventory. Come springtime, I anticipate that supply levels will rise as more sellers move into the market, but I don’t expect there to be a huge wave of relief,” said Frank Ingham, associate broker, Royal LePage Sussex. “Many buyers continue to wait on the sidelines for prices to fall or for borrowing costs to become more affordable, especially those purchasers who are buying for their retirement or for their adult children to enjoy. This trend is creating more pent-up demand on the sidelines, and is causing properties to stay on the market twice as long as last year. However, as the spring market gains momentum, I expect more homes that have been sitting on the shelves will start to move into the hands of buyers.”

According to the survey, 54 per cent of recreational property experts in British Columbia said that the trend of homeowners moving back to urban or suburban communities after relocating to their region full-time during the pandemic was not common, a factor contributing to the supply shortage.

The aggregate price of a single-family home in British Columbia’s recreational regions is forecast to decrease a modest 2.0 per cent in 2023 to $1,049,874, as moderate activity is expected while buyers wait for more product to come onto the market.

Royal LePage 2023 Spring Recreational Property Price Forecast and 2022 Price Data Chart (national and regional): rlp.ca/table_2023springrecreationalpropertyreport

About the Royal LePage Recreational Property Report

The Royal LePage Recreational Property Report compiles insights, data and forecasts from 50 markets. Median price data was compiled and analyzed by Royal LePage for the period between January 1, 2022 and December 31, 2022, and January 1, 2021 and December 31, 2021. 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. Data availability is based on a transactional threshold and whether regional data is available using the report’s standard housing types. Aggregate prices may change from previous reports due to a change in the number of participating regions.

About the Royal LePage Recreational Property Advisor Survey

A national online survey of 202 brokers and sales representatives serving buyers and sellers in Canada’s recreational property regions. The survey was conducted between March 1, 2023 and March 18, 2023.

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 approximately 20,000 real estate professionals in over 670 locations nationwide. Royal LePage is the only Canadian real estate company to have its own charitable foundation, the Royal LePage Shelter Foundation, which has been dedicated to supporting women’s shelters and domestic violence prevention programs for 25 years. 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.

List of Royal LePage recreational property experts:

Atlantic Canada

Annapolis Valley, NS
Logan Morse, Sales Representative
Royal LePage Atlantic
loganmorse@royallepage.ca
902-680-5752

Cape Breton, NS
Ian Hamilton, Owner
Royal LePage Anchor Realty
ianhamilton@royallepage.ca
902-225-0344

South Shore, NS
Corey Huskilson, Sales Representative
Royal LePage Atlantic
coreyh@royallepage.ca
902-680-5752

Avalon Peninsula, NL
Tim Crosbie, Broker/Owner
Royal LePage Property Consultants
tim@timcrosbie.ca
709-682-6609

Central Newfoundland, NL
Mike Turner, Manager/Owner
Royal LePage Turner Realty
miketurner@royallepage.ca
709-424-6517

Shediac, NB
Heather Fitzgerald, Sales Representative
Royal LePage Atlantic
heatherfitzgerald@royallepage.ca
506-875-3600

St. Stephen & St. Andrews, NB
Misty Flynn, Sales Representative
Royal LePage Atlantic
misty@royallepage.ca
506-866-8832

Quebec

Antoine-Labelle
Jessica Vaillancourt, Residential Real Estate Broker
Royal LePage Humania
jvaillancourt@royallepage.ca
819-808-9807

Argenteuil
Pierre Vachon, Residential and Commercial Real Estate Broker
Royal LePage Humania
pvachon@royallepage.ca
514-512-1598

Baie-St-Paul
Jean-François Larocque, Residential and Commercial Real Estate Broker
Royal LePage Inter-Québec
jfl@royallepage.ca
418-635-1191

Gaspé
Christian Cyr, Residential and Commercial Real Estate Broker
Royal LePage Village
christian.cyr@royallepage.ca
418-392-9927

La Jacques-Cartier and Côte-de-Beaupré
Marc Bonenfant, Residential and Commercial Real Estate Broker
Royal LePage Inter-Québec
marcbonenfant@royallepage.ca
418-561-3918

Les Appalaches
Mélissa Roussin, Residential and Commercial Real Estate Broker
Royal LePage Pro
mroussin@royallepage.ca
418-333-2214

Laurentides and Pays d’en Haut
Éric Léger, Residential and Commercial Real Estate Broker
Royal LePage Humania
eric@ericleger.com
514-949-0350

Matawinie and Montcalm
Éric Fugère, Residential and Commercial Real Estate Broker
Royal LePage Habitations
ericfugere@royallepage.ca
514-799-2847

Memphrémagog and Bromont
Véronique Boucher, Residential Real Estate Broker
Royal LePage Au Sommet
veroniqueboucher@royallepage.ca
450-525-2318

Papineau
Annick Fleury, Residential Real Estate Broker
Royal LePage Vallée de l’Outaouais
annick@equipefleury.ca
819-592-5152

Ontario

Bruce Peninsula
Chris Amyot, Sales Representative
Royal LePage RCR Realty
chrisonthebruce@gmail.com
519-649-8081

Haliburton County
Anthony vanLieshout, CRA, Broker of Record
Royal LePage Lakes of Haliburton
anthony@royallepage.ca
705-935-1000

Honey Harbour
Laurie Belsey, Broker
Royal LePage In Touch Realty
lauriebelsey@gmail.com
705-715-2010

Kawartha Lakes
Guy Masters, Broker of Record
Royal LePage Kawartha Lakes Realty
gmasters@royallepage.ca
705-328-4234

Lake Erie Shoreline
Deanna Gunter, Branch Manager
Royal LePage NRC Realty
deanna@royallepage.ca
905-688-4561

Land O’Lakes and Tweed
Diana Cassidy-Bush, Sales Representative
Royal LePage ProAlliance Realty
dianacb@royallepage.ca
613-966-6060

Mid Lake Huron/Huron & Perth County
Jeff Bauer, Broker/Owner
Royal LePage Heartland Realty
jeffbauer@royallepage.ca
519-525-7448

Muskoka
John O’Rourke, Broker/Owner
Royal LePage Lakes of Muskoka
john@rlpmuskoka.com
705-645-5257

The North Channel (Echo Bay, Desbarats, Bruce Mines, Thessalon, Iron Bridge, North Shore, Huron Shore, Blind River, Algoma Mills, Elliot Lake, Splanish)
Mariola Morin, Sales Representative
Royal LePage Northern Advantage
mariola@royallepage.ca
705-206-3110

Orillia
Anastasia Langiano, Broker of Record/Owner
Royal LePage Real Quest Realty
stasia@royallepage.ca
705-309-2541

Ottawa Valley
Aaron Cope, Broker/Manager
Royal LePage Team Realty
acope@royallepage.ca
613-552-4436

Peterborough County (Peterborough and The Kawarthas)
Gail Burton, Sales Representative
Royal LePage Frank Real Estate
gburton@nexicom.net
705-761-3165

Rideau Lakes
Pauline Aunger, Broker of Record
Royal LePage Advantage Real Estate
paulineaunger@royallepage.ca
613-285-9158

Southern Georgian Bay (Meaford, Thornbury, Wasaga Beach, Collingwood)
Desmond von Teichman, Broker
Royal LePage Locations North
teichman@royallepage.ca
705-444-7063

St. Joseph Island
Jonathan Stewart, Broker of Record
Royal LePage Northern Advantage Stewart Team
jonathan@stewartteam.ca
705-253-7105

Prairies

Interlake, MB
Tyler Bucklaschuk, Sales Representative/Broker
Royal LePage JMB & Associates
tylerb@royallepage.ca
204-642-8576

Lac du Bonnet, MB
Rolf Hitzer, Broker/Owner
Royal LePage Top Producers Real Estate
hitzer@mymts.net
204-960-2159

North Central Saskatchewan (Christopher Lake, Emma Lake, Candle Lake, Waskesiu Lake & Elk Ridge), SK
Lou Doderai, Broker/Owner
Royal LePage Icon Realty
lou@royallepagepa.ca
306-960-7925

Alberta

Canmore
Brad Hawker, Associate Broker
Royal LePage Solutions
info@canmorerealestate.com
403-678-7557

Pigeon Lake
Barbara Howey, Broker/Owner
Royal LePage Parkland Agencies
barbarahowey@royallepage.ca
780-361-7882

Wabamun Lake and Lac Ste. Anne
Tom Shearer, Broker/Owner
Royal LePage Noralta Real Estate
tomshearer@royallepage.ca
780-993-1515

British Columbia

Central Okanagan
Francis Braam, Broker/Owner
Royal LePage Kelowna
francis@kelowna.royallepage.ca
250-860-1100

Comox Valley, Denman Island, Hornby Island, Mt. Washington
Gregg Hart, Broker/Owner
Royal LePage In The Comox Valley
gregghart@royallepage.ca
250-334-7864

Invermere
Barry Benson, Broker/Owner
Royal LePage Rockies West Realty
barrybenson@royallepage.ca
250-342-5809

East Kootenays (Cranbrook, Kimberley, Fernie, Sparwood, Creston, Elkford)
Gavin Thomas, Managing Broker
Royal LePage East Kootenay Realty
gavinthomasrealtor@gmail.com
250-919-5533

Pemberton and Whistler
Frank Ingham, Associate Broker
Royal LePage Sussex
frank@frankingham.com
604-230-8167

SOURCE Royal LePage Real Estate Services

Cision

View original content: http://www.newswire.ca/en/releases/archive/March2023/28/c8867.html

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Real eState

Cottage real estate rush slows to a stall – Financial Post

Published

5 hours ago

March 28, 2023

Megan Johnson

Prices set to fall in all but one province

After a record red-hot run over the past two years, prices for recreational real estate in the country are expected to fall 4.5 per cent in 2023. Photo by Brent Foster/National Post

Reviews and recommendations are unbiased and products are independently selected. Postmedia may earn an affiliate commission from purchases made through links on this page.

Good Morning,

A chill has fallen over cottage country in Canada.

After a red-hot record run over the past two years, prices for recreational real estate in the country are expected to fall 4.5 per cent in 2023 as market activity slows, according to a Royal LePage report out this morning.

With the exception of Alberta, all of Canada’s recreational markets are forecast to see a decrease in single-family home prices. Quebec and Ontario are expected to see the biggest drops, falling 8 per cent and 5 per cent respectively.

This is a big difference from what the recreational market experienced over the past two years. Last year aggregate prices for a single-family dwelling increased 11.7 per cent to $619,900. The year before they soared 26.6 per cent.

“After two years of relentless year-round competition, Canada’s recreational property markets have slowed and returned to traditional seasonal sales patterns,” Phil Soper, president and chief executive of Royal LePage said in the report.

Soper said the recreational property market is less sensitive to rising interest rates because buyers tend to put more money down and borrow less, but overall inflation and a “severe lack of inventory” have led to a slump in sales.

Another factor is a reversal of the pandemic exodus out of the cities. During COVID-19 lockdowns when offices closed, many Canadians used their cottage as a second home and worked from there. But with companies requiring employees back in the office at least a few days of the week commutes have become challenging.

“For many, living in cottage country full-time has lost its romantic shine, meaning we are back to viewing the cottage, cabin and chalet as a weekend and summer escape from urban living,” said Soper.

In Atlantic Canada, a “pandemic relocation hotspot,” 46 per cent of brokers said they were seeing a trend of homeowners returning to cities after relocating to the region and demand for cottage properties has decreased significantly.

“The multiple-offer scenarios and homes selling over-asking are not as common today as they were during the pandemic boom,” said Corey Huskilson, sales representative, Royal LePage Atlantic in South Shore, Nova Scotia.

Cottage prices in Ontario climbed steadily during the pandemic years, with the price for a waterfront property topping $1 million in 2022. This year prices are expected to fall by 5 per cent.

O’Rourke expects activity to be more balanced this spring, with traditional cottage buyers coming back to a market where they don’t have to compete with “the investment-focused buyer, a prominent player during the pandemic boom.”

Alberta is the one area of the country bucking the trend. Last year the aggregate price for a recreational single-family home here climbed 13.3 per cent to $1,165,500 from 2021. This year that price is expected to rise to $1,171,328.

Next door to Banff National Park and the home of many luxury properties, Canmore is a significant driver of prices in Alberta.

While brokers here are seeing lower inventories, demand has remained stable.

Moreover, 65 per cent of the brokers surveyed said they were not seeing the trend of homeowners moving back to cities after relocating, another factor contributing to the supply shortage.

One bright spot for all you cottage owners out there. Despite the declines forecast this year, the national aggregate price will still be 32 per cent higher than in 2020, after two years of double-digit gains.

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The World Bank is warning of a lost decade, saying that potential global growth has slumped to the three-decade low of 2.2 per cent a year through to 2030.

Crisis after crisis including the COVID-19 pandemic and Russia’s invasion of Ukraine have ended almost three decades of sustained expansion, says the new report.

With nearly all the economic forces that powered progress and prosperity over the past 30 years fading, potential GDP growth is expected to decline by about a third from what was seen in the century’s first decade. The decline is even steeper for developing economies and if the current banking turmoil explodes into a global financial crisis or recession, the declines will be steeper still.

The World Bank says its report offers the “first comprehensive assessment of long-term potential output growth rates in the aftermath of the COVID-19 pandemic and the Russian invasion of Ukraine.”

“A lost decade could be in the making for the global economy,” said Indermit Gill, the World Bank’s chief economist.

Expanding labour supply, boosting investment in sustainable sectors and cutting trade costs could increase GDP growth, but failure to reverse the slowdown would have profound consequences on the world’s ability to tackle climate change and reduce poverty, warned the report.

Federal Budget. Get primed for the budget which will be released at about 4 p.m. ET with Financial Post coverage here

Josie Osborne, minister of energy, mines and low carbon innovation, will make an announcement about support for leading-edge clean energy, such as projects advancing B.C.’s ocean economy

The U.S. Consulate General in Vancouver and MAPLE Business Council co-host a SelectUSA conference to inform small and medium-sized Canadian businesses, entrepreneurs and others about how to expand a business or invest in the United States.

Today’s Data: U.S. Advance Economic Indicators Report, U.S. Conference Board Consumer Confidence Index
Earnings: Lululemon Athletica

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It’s Budget Day in Canada today, and Jamie Golombek has gleaned some insight on the potential impact on our pocketbooks from the pre-budget Report of the Standing Committee on Finance, which contained 230 separate recommendations for tax changes and spending. Read on to find out how the capital gains tax and other changes could target higher-income Canadians in the budget. Then check back after 4 p.m. ET tonight when Golombek will have the latest news out of the federal budget 2023.

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Today’s Posthaste was written by Pamela Heaven, @pamheaven, with additional reporting from The Canadian Press, Thomson Reuters and Bloomberg.

Have a story idea, pitch, embargoed report, or a suggestion for this newsletter? Email us at posthaste@postmedia.com, or hit reply to send us a note.

Postmedia is committed to maintaining a lively but civil forum for discussion and encourage all readers to share their views on our articles. Comments may take up to an hour for moderation before appearing on the site. We ask you to keep your comments relevant and respectful. We have enabled email notifications—you will now receive an email if you receive a reply to your comment, there is an update to a comment thread you follow or if a user you follow comments. Visit our Community Guidelines for more information and details on how to adjust your email settings.

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Real eState

House of the Week: $4.8 million for a humongous Whitby estate with a turret and a 15-foot-tall waterfall

Published

15 hours ago

March 27, 2023

Megan Johnson

Neighbourhood: Central Whitby
Price: $4,800,000
Size: 6,500 square feet
Bedrooms: 4+4
Bathrooms: 5
Agent: Kelsey Schoenrock, Chestnut Park Real Estate

The place

A stately country house in Whitby sitting on a staggering 13 acres of forested land. Located off Anderson Street, it’s a short drive to Whitby’s downtown strip but far enough from city life to feel like an escape.

The history

The current owners, Bob and Judy, were living nearby and raising their three kids when they came across this property in 1991. Bob was eager for a slice of cottage life, and Judy wanted to stay close to Whitby, so the spot seemed like the perfect compromise. After several years of living off-site, they hired architect Duff Ryan and Vicki King of Willow Hill Designs to help them realize their dream. Construction finished in 2001, and now, 22 years later, they’re looking to downsize.

The tour

Stepping through the front door—imported from Colorado—reveals this grand foyer. On the right is the dining area, sectioned off by rounded, taupe-stained pine walls.

The partial wall and cut-out windows allow natural light into the space, and the room was built specifically to accommodate that large circular dining table.

Here’s a view from above. The outer ring of the table can be removed to seat smaller groups.

Just beyond the dining area is this lodge-inspired great room, with cedar log beams, pine ceilings and hemlock floors. The 20-foot-tall transom windows overlook land that backs onto the Greenbelt.

That reading nook beside the limestone fireplace is the ideal spot for a morning coffee.

Opposite the great room is the kitchen, which features matte granite countertops, a butler’s pantry and an island with seating for three. The tin ceiling was made by an artisan in Waterloo.

The kitchen also has a wet bar.

And, yes, this home comes with a turret. This is its main level, which houses a breakfast room. There’s porch access through the doors on the left and a three-season sitting room on the right.

Here’s that sitting room—the owners wanted a space to enjoy the outdoors in the summertime without having to worry about flies and mosquitoes.

Back inside on the main floor is this office, which can be seen from the second floor.

Here’s the main-floor powder room, with an antique metal wash basin.

This laundry room down the hall has a built-in gift-wrapping station, and its large porcelain sink is great for prepping flower arrangements.

The primary bedroom sits on the main floor and features a faux-stone wall that conceals the ensuite bathroom.

The ensuite has plenty of storage.

It also comes with a glass shower and jet tub that overlook the sprawling woods.

A quick detour outside shows off the main bedroom’s porch, which has more of those cedar logs, this time as pillars.

The catwalk on the second floor is almost always bathed in natural light.

Above the garage is the guest suite. Whitewashed ceilings and soft pine floors add a bit of freshness.

Here’s a reverse view of the suite to show its cozy window bench.

Guests also have their own ensuite.

This sewing room could easily be converted into another bedroom.

And so could this exercise room with vaulted ceilings.

The estate’s painting studio sits at the end of the second-floor hall. That railing on the right overlooks an escape ladder.

Here’s the ceiling, which is itself a work of art.

If a daring escape isn’t your thing, you can reach the basement via the winding staircase.

There are are four more bedrooms in the basement. This one has an ensuite.

Here’s that ensuite, with a double vanity and a raised shower.

Beyond these stained-glass doors is a walk-up bar, a media room, a games room, a wine cellar and a tasting area.

And here’s a look at that bar. The doors on the right lead to a 700-square-foot patio with a hot tub.

The games room is fashioned for the outdoorsy types.

The sunken media room showcases another fireplace (this one’s granite) and a movie screen that can be hidden away via the folding doors on either side.