Canmore’s recreational property market continues to surge, with prices showing no signs of slowing down, according to a local real estate broker. A significant portion of this upward trend can be attributed to the wave of baby boomers entering retirement and seeking active living destinations.
Although the frenzy seen during the pandemic has eased off, Canmore’s single-family home prices climbed by four percent in 2023, reaching $1.56 million. Similarly, median standard condominium prices rose steadily from $552,000 in 2020 to approximately $685,000 in 2023.
Despite being among Canada’s priciest locations for recreational properties, Canmore continues to witness growth in home sales, particularly in the recreational housing market, which surged by 25 percent in 2021. The average price for a single-detached home in Canmore reached $1,234,000 during this period, showcasing a steady increase over previous years.
This consistent rise in prices is largely driven by the retiring baby boomer demographic, who are actively seeking locations to maintain an active lifestyle. Additionally, Alberta’s influx of newcomers from both domestic and international regions has further fueled this growth.
Recreational Property Market Trends Extend Beyond Canmore
Beyond Canmore, other regions in Alberta have experienced significant price hikes in the recreational property market. In fact, in 2023, Alberta led national cabin and cottage price growth.
According to a 2024 report by Royal LePage, the demand for lake and mountain homes was strong last year. Alberta’s single-family recreational home median price rose by 4.7%. Conversely, B.C. prices remained flat, and Ontario’s dropped by 5.2%. Alberta saw a slight decline in waterfront property prices, while Quebec, Ontario, and B.C. saw drops of over 8%.
Two of these areas experiencing significant growth over the past year, outside of Canmore, are Pigeon Lake and Wabamun Lake. For instance, the median price of a single-detached recreational property on Wabamun Lake surged by 53.5% to $675,300, for an increase of nearly $250,000 from 2022, while homes on Pigeon Lake saw a 13.8% increase to $417,000.
Wabamun Lake’s increase was partly due to a few pricier, modernized homes being sold, but also because of increasing demand. An influx of people relocating to Alberta, especially from Ontario, and B.C. buyers seeking affordable lakefront properties, have been adding to the competition.
It also appears that the COVID-19 pandemic may have reinvigorated interest in recreational properties, sustaining high demand. It further helps that these purchases tend to be cash-based, so are less likely to be impacted by current high interest rates.
Lac St. Anne, on the other hand, saw an 11.5% decline, and remains the most affordable destination for recreational property buyers in Alberta, with single-detached homes averaging $290,000.
Experts are projecting that these trends may continue. As a result, buyers can expect heightened competition and rising prices, while sellers and investors may benefit from the sustained demand and increasing property values in the recreational housing market.
