Interest rates remain one of the primary purchasing factors for Canadians, according to a new survey by Royal LePage, with 76 per cent of respondents stating that they are more inclined to buy a recreational property in Canada than elsewhere.
"Despite financial and economic uncertainty, or perhaps because of it, we have found that the enduring value of recreational properties is widely-recognized by Canadians," said Phil Soper, president and chief executive of Royal LePage Real Estate Services. "In contrast to our large urban centres, where home prices shot up in recent years before rapidly cooling in 2013, the recreational property market has remained remarkably stable and resilient."
Canadians remain optimistic about the recreational property market with half of the survey respondents believing that prices will increase in the coming year while 32 per cent believe they will remain stable.
"I shy away from recommending real estate as an investment for the typical family,” said Soper. “Shelter is, after all, primarily consumption.”
That may be reflected in many cottage markets across Ontario where sales have been sluggish over the last couple years and some sellers of condos in those communities have found it particularly difficult to shift those units in the face of ample supply.
Still, A majority of the nationwide survey participants said they planned to keep their properties long-term, with 60 per cent stating that they are somewhat or very unlikely to sell their property upon retirement. Properties on a lake and in the mountains/woods are the preferred choice, as are condos in recreational communities.
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