Recreational property sales and listings have rebounded across most of Canada according to a RE/MAX Recreational Property Report just released.
While there are nuances and specific attractions that define local markets across the country, a number of broad national trends have been observed.
Two groups of buyers are driving the majority of recreational property sales in Canada. The first is made of families with younger children, who have built up equity in their primary residence and are using that money to purchase a vacation property. The second group is made up of near or recent retirees who have purchased a recreational property with a plan to use it as a primary summer residence and launching pad for winter travel.
Canada's hot residential real estate market in urban centres has had a spillover effect on recreational property sales. This is particularly true in markets with a two-hour drive of the country's large urban centres, where price appreciation has allowed homeowners to use equity gains in their primary residence to purchase a second home for recreational use.
The way buyers are using their recreational properties is changing. While in the past, properties were largely used for weekend getaways and a week or two of summer vacationing, today many are purchasing a property from which they can work throughout the summer. Furthermore, a majority now see their recreational property as a four-season vacation option, rather than just a summer retreat.
CMHC Insurance Changes
While some potential recreational buyers may have been discouraged by the Canada Mortgage and Housing Corporation's recent decision to eliminate insurance on second mortgages, little or no impact has been witnessed from this change. There are many options available for financing and insuring mortgages on a second property...
The full RE/MAX Recreational Property Report, with market activity summaries for 41 regions across Canada is available here.
Source of Photo & Text : RE/MAX