A flood of listings will not hit Canada’s recreational property market, said RE/MAX Canada’s 2024 Cottage Trends Report.
Despite higher interest rates, Canada’s cottage owners are choosing to hold on to their properties.
This is a trend influenced by the quality of life alongside the prospect of future returns on recreational property ownership.
RE/MAX brokers and agents in Canada predict an increase in recreational prices by 6.8 per cent.
Demographic shift in real estate market
Sales will rise in the majority of regions analyzed (61.9 per cent), and increase between three per cent upwards of 50 per cent this year.
According to RE/MAX, families drive activity in 59 per cent of recreational markets.
Retirees drive the market, the dominant demographic in 91 per cent of markets.
Lifestyle and flexibility afforded by hybrid and remote work drive buying interest.
A survey said recreational property owners (38 per cent) choose to stay at secondary properties.
Younger buyers will buy: 55 per cent among Gen Z), and 57 per cent among Millennials.
Research findings on recreational properties revealed
“Those who gain a foothold in the recreational property market are determined to hold on to this asset,” says Christopher Alexander, RE/MAX Canada.
“Even the change to the capital gains tax won’t spark a widespread flood of new listings,” continues Alexander.
