2006 RECREATIONAL PROPERTY REPORT
This year’s RE/MAX RECREATIONAL PROPERTY REPORT highlights activity in 40 major markets, and found that older boomers are fueling unprecedented demand in 67% (27) of markets surveyed during the first quarter of 2006. Never before have those aged 50 plus been such a strong segment of the recreational property market. You may view the complete 25 page report at www.GreatManors.com which details specific trends in each recreational location. If you own a retreat, the chances are you’ll be able to read about it’s market value shifts here.
“Baby boomers have played a key role in real estate markets across North America since the early 1970’s”, says Michael Polzler, Executive Vice President, Regional Director, RE/MAX Ontario-Atlantic Canada. “ It comes as no surprise that boomers have now set their sights on recreational property. Frankly it makes perfect sense. They believe in real estate as an investment and view recreational property as a relatively safe bet.”
Boomer demand has also sparked an upswing in starting prices for 3 bedroom, winterized recreational properties on waterfront lots. Virtually every market surveyed reported an increase. Once again, the most expensive markets are found in the west, with Whistler ($1.1 million), Salt Spring Island ($1 million), Shuswap Lake ($1 million), Kelowna (Lake Okanagan $1 million), Penticton ($800,000-$1 million), Sylvan Lake ($800,000-$850,000) and Vernon ($800,000) representing the top seven. Ontario’s Bala/Port Carling area in Muskoka ($500,000-$550,000) is the most expensive in Ontario-Atlantic Canada. Some of the most affordable oceanfront properties can be found on Canada’s east coast, where starting prices are under $200,000.
International purchasers from Europe, Asia, Australia and New Zealand are also fueling demand for big-ticket properties from Salt Spring Island to Newfoundland. Younger boomers and Generation X have also bolstered demand. And many of these purchasers are seeking more affordable properties and are willing to travel a distance to realize their goals and objectives at a fraction of the cost of more southern locales. Limited inventory levels have been reported in approximately 50% of markets surveyed. Most markets, however, are reporting recreational property sales for the first quarter of this year on par or ahead of 2005 levels.
Teardown activity is rampant in most areas of the country, as baby boomers construct year-round lakeside dwellings that offer all the comforts of home. Renovation is also occurring at full-tilt in markets across the country.
RECREATIONAL PROPERTY STARTING PRICES*
| MARKET |
2004 |
2005 |
| Newfoundland |
|
|
| East** |
$69,000 |
$49,000 |
| West** |
N/A |
$50,000 - $70,000 |
| New Brunswick |
|
|
| Shediac Bay** |
$225,000 - $300,000 |
$100,000 - $150,000 |
| Prince Edward Island |
|
|
| South Shore, North Shore** |
$200,000 |
$100,000 - $110,000 |
| Summerside ** |
$125,000+ |
$118,000+ |
| Nova Scotia |
|
|
| South Shore, Lunenberg County** |
$175,000 - $250,000 |
$135,000 |
| Ontario |
|
|
| Lake Huron: |
|
|
| Grand Bend |
$350,000 |
$325,000 - $350,000 |
| Sauble Beach |
$250,00 |
$350,000 |
| Bruce Peninsula |
$275,000+ |
$350,000 |
| Bruce County, Port Elgin, Kincardine, Goderich |
N/A |
$300,000 - $350,000 |
| Parry Sound |
$150,000 - $160,000 |
$200,000 |
| Elliott Lake |
$150,000 |
$155,000 - $250,000 |
| Muskoka: |
|
|
| Bracebridge, Gravenhurst |
$350,000 |
$300,000 - $400,000 |
| Port Carling, Bala |
$500,000 - $550,000 |
$450,000+ |
| Huntsville, Lake of Bays |
$250,000 - $400,000 |
$300,000 - $400,000 |
| Haliburton |
$200,000 |
$280,000 |
| Bancroft |
$220,000 |
$250,000 |
| Flesherton |
$250,000 |
$300,000+ |
|
Georgian Bay: |
|
|
| Midland |
$275,000 - $300,000 |
$350,000 |
| Honey Harbour, Port Severn |
$300,000 |
$300,000 - $400,000 |
| Collingwood |
$400,000+ |
$350,000 - $400,000 |
| Wasaga Beach |
$500,000 |
$550,000 |
| Orillia, Lake Couchiching |
$300,000 |
$290,000 |
| Lake Simcoe: |
|
|
| Innisfil to Oro |
$390,000 - $450,000 |
$340,000 |
| Beaverton |
$300,000 |
$200,000 - $320,000 |
| East Kawarthas – Lakefield |
$250,000 |
$300,000 - $325,000 |
| East Kawarthas - Bridgenorth |
N/A |
$250,000 |
| West Kawarthas |
$220,000 |
$275,000 |
| Prince Edward County |
$200,000 |
$200,000 |
| Kingston |
$140,000 |
$190,000 |
| Pembroke |
$110,000 |
$100,000+ |
| Manitoba |
|
|
| Winnipeg and Area |
$300,000 - $400,000 |
$100,000 - $250,000 |
| Saskatchewan |
|
|
| Prince Albert |
$200,000 |
$200,000 |
| North Battleford |
$200,000 - $300,000 |
$200,000 - $300,000 |
| Alberta |
|
|
| West of Edmonton |
$150,000 |
$150,000 |
| Sylvan Lake |
$430,000 |
$520,000 |
| Canmore |
$300,000 |
$200,000 |
| British Columbia |
|
|
| Salt Spring Island** |
$700,000 - $1,000,000 |
$1,000,000+ |
| Ucluelet** |
$450,000 - $500,000 |
$700,000 |
| Tofino** |
$450,000 |
$550,000 |
| Comox Valley/Mt. Washington |
$350,000 - $400,000 |
$400,000+ |
| Okanagan Valley: |
|
|
| Vernon |
$550,000+ |
$800,000 |
| Penticton |
$500,000+ |
$800,000 |
| Shuswap Lakes |
$450,000 |
$700,000 |
| Sun Peaks |
250,000+ |
$275,000 |
| Fraser Valley: Harrison Lake |
$350,000 |
$425,000 |
| South Cariboo |
$180,000 |
$200,000 |
| Whistler |
N/A |
$1,100,000+ |
| Sunshine Coast** |
$500,000+ |
$300,000 - $500,000 |
|