News Desk

Recreational Land Prices Soar North of the Border

The upward trend in recreational real estate prices is not limited to the U.S. Strong demand and scare supply continue to elevate the value of recreational properties in markets across Canada, according to a report commissioned by Royal LePage, a major player in the Canadian real estate market.

“Escalating recreational property prices are evident in the majority of markets across the country and do not show signs of decreasing in the near future,” says Phil Soper of Royal LePage Real Estate Services. “The rising prices are not surprising given the fact that there is a convergence of buyers entering the market with urban professionals, young families, and baby boomers all vying for properties with similar features.”

Results were generated by a telephone poll of more than 3,000 randomly selected adults conducted by Maritz Research in April and May. On the buy side, among the intriguing insights was that almost one-quarter (24 percent) of those who identified themselves as prospective purchasers declared that they were willing to spend more on their recreational property than on their primary residence. The overwhelming majority (78 percent) of those who seek to purchase a recreational property in the next three years is under 49. One in five (19 percent) expects to pay in cash.

But Canada continues to be a seller’s market. Only 15 percent of recreational property owners report that they are likely to market their property within the next three years. The vast majority of those opting to hold on – 60 percent – plan to will their property to family members.

Royal LePage is a leading Canadian residential real estate brokerage. Founded in 1913, the company’s network of franchises includes 11,700 agents in 600 locations.

- Canada NewsWire