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Winter properties near busy Canadian ski regions are set to become pricier over the next 12 months, according to a new report by Royal LePage.
The median price of a single-family detached home in Canada’s recreational ski regions will increase 2.9 per cent over the next 12 months to $1,099,661, according the report published Tuesday that looked at real estate trends for secondary residential properties.
Royal LePage’s research focused on ski properties in Quebec, Ontario and Alberta, looking at price and sales data from local brokerages and boards in the years of 2022 and 2023.
After a record series of central bank interest rate hikes, rates are expected to stabilize in 2024, driving real estate prices higher in turn, the report said.
“While demand has weakened and supply has increased compared to the pandemic-fueled boom, market activity is trending back to normal historical levels,’ said Pauline Aunger, broker of record at Royal LePage Advantage Real Estate.
“This will keep prices on a modest upward trajectory in the coming year as Canadians continue to seek out a spot on some of the world’s most desirable slopes.”
The expected price upswing represents a rebound from the trend seen in 2023, the report noted.
This year, a combination of high interest rates, high living costs and uncertain economic conditions caused winter home prices to drop 0.7 per cent to $1,068,200 year-over-year, the report said.
Forty-one per cent of Royal LePage recreational property market experts surveyed for the report said inventories have increased as a direct result of rising interest rates, while 24 per cent reported a decline in demand for speciality properties due to risks of environmental disasters.
PANDEMIC DEMAND WANES
Demand for second properties rose during the pandemic as many people shifted to remote work arrangements – but this trend has since reversed, the report found.
Fifty-nine per cent of recreational regions surveyed said there were double-digit declines in the number of homes sold during the first 10 months of 2023 compared to the same period last year.
“Activity on the whole in Canada’s winter recreational communities has noticeably slowed,” Aunger said. “Annual sales are down in most regions and inventory has climbed modestly as the market continues to regain balance.”
Methodology: The survey cites median price and sales data for 18 popular ski regions across Canada that were compiled and analyzed by Royal LePage for the periods between January 1, 2023 and October 31, 2023, and January 1, 2022 and October 31, 2022. Data was sourced through local brokerages and boards within in each of the surveyed regions.