Low Dollar is Boosting Canadian Recreational Property Markets

Revised_2016RecreationalPropertyReport_OnlineAssets_Remax.caBlog_1140x512-690x310

This week, RE/MAX Canada released its 2016 Recreational Property Report, which outlines a number of important trends, most notably that the economy is boosting the recreational property market in Canada. A number of factors are contributing to a trend that is seeing more Canadians buying investment recreation properties, and more Canadians looking to rent them as well.

The low Canadian dollar is having a positive effect on Canada’s recreational property markets. Canadians, mainly Baby Boomers, who bought properties in the U.S. when U.S. real estate prices were comparably low are selling them at a profit and investing in Canadian recreational markets. The low dollar is also encouraging Canadians to vacation within the country rather than going abroad, putting their money into vacation rentals closer to home. [REMAX]

Here’s some of the highlights and trends from the report:

  •  60 per cent agreed that due to the emergence of popular, user-driven vacation rental websites (VRBO, Airbandb), it is easier for an owner to rent out an investment property
  • Generation Y is sustaining the need for recreational properties; millennials were most likely to have spent time at a cottage or cabin in the past year
  • Increase in buyers planning to rent out their properties, demand is driven primarily by families and retirees

Here’s a look at what some of the most desirable cabin amenities:

  • 96 per cent want a quiet atmosphere
  • 94 per cent want privacy
  • 81 per cent want sandy beaches
  • 77 per cent want outdoor activities

Some regions, particularly established recreational destinations with international reputations such as Whistler, the Muskokas and Mont Tremblant, are seeing foreign buyers, primarily from the U.S., return to those markets. Cape Breton Island, which recently made international news when a website “Cape Breton If Donald Trump Wins” gained the attention of high-profile news media, has seen increased interest from prospective U.S. buyers this year due to the publicity boost, combined with favourable exchange rates. [REMAX]

To read the full report from RE/MAX, you can find it online here. We’ve been sharing some of the notable statistics from the report via our Twitter page as well.

Tags: , , , , , , , , ,