Retirees' influence heating up recreational home prices

The latest study by RE/MAX found that the influence of retirees on Canada’s recreational housing market has only grown stronger over time.

As of this year, retirees accounted for 91% of activity in the segment, compared to the 55% proportion in 2017, the Financial Post reported.

This was concurrent to the average price of this property type increasing by a notable 13% year-over-year last June – a development that RE/MAX said is fuelled by retirees settling down on their already purchased recreational properties.

“A lot of them are cashing in and buying recreational properties or they’re refinancing and just taking some equity to do it or their straight up selling their urban home and moving into recreations markets full time,” RE/MAX Integra Ontario-Atlantic Canada Region executive VP and regional director Christopher Alexander said.

Read more: Royal LePage: Value of B.C.’s recreational property to decline in 2018

Nearly 20% of Canada’s elderly said that they are using their recreational properties as their retirement homes, while one-third of the RE/MAX respondents stated that their purchases are meant as investments.

“Combined with the fact that Canada’s senior population is the largest it has ever been … pricing has increased across the majority of markets,” Alexander stated.

Among Canadian seniors’ preferred recreational properties are waterfront assets, with non-waterfront, water access, and ski-in properties coming just behind.

 

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