Canada’s Ski Property Market Experiences a Slowdown
Canada is home to numerous world-class ski regions, but many of these areas have seen a decline in home sales this year. According to a new report from Royal LePage, the majority of winter recreational regions surveyed (59%) recorded double-digit declines in the number of homes sold during the first 10 months of 2023, compared to the same period last year.
Factors Contributing to the Slowdown
Nearly half (47%) of the local experts surveyed across the country reported shrinking demand in their respective regions, as well as an increase in inventory (88%) and the average number of days on market (82%). “Unlike purchasing a primary residence, most people in the market for a recreational property have the luxury to wait for the right home to come along, or for more favorable market conditions,” said Pauline Aunger, Broker of Record for Royal LePage Advantage Real Estate.
As a result of dwindling demand, Canada’s winter recreational markets saw prices slip by 0.7% in the first 10 months of the year to a new average of $1,068,200. Although largely due to high interest rates, the rising cost of living, and “a general uneasiness about the state of the economy,” winter recreational markets had an additional dampening factor. Nearly a quarter of these markets reported a decline in buyer demand due to climate factors or environmental disasters following an unprecedented wildfire season.
Effects on Specific Ski Regions
Whistler, perhaps Canada’s most well-known ski region, saw prices remain relatively flat in 2023, sliding down 0.4% in the first 10 months of the year. However, demand took a tumble, with sales down 12.3% year over year. BC’s Sun Peaks and Big White were also hit hard in the sales department, falling 47.7% and 30.5%, respectively.
Alberta’s Canmore region saw a sizable 17.2% decline in sales, though prices still managed to climb 9.6% year over year during the first 10 months of 2023. Over in Quebec, Mont-Tremblant experienced a 33.5% decline in sales volume, but single-family home prices still saw an increase, growing by 7.8%.
Outlook for 2024
Royal LePage remains optimistic for the winter recreational market as a whole, forecasting a 2.9% growth over the next 12 months in the price of single-family homes. This, however, is based on the expectation of stabilized interest rates throughout 2024. “While demand has weakened and supply has increased compared to the pandemic-fueled boom, market activity is trending back to normal historical levels,” said Aunger. “This will keep prices on a modest upward trajectory in the coming year as Canadians continue to seek out a spot on some of the world’s most desirable slopes.”
To learn more about the current state of Canada’s ski property market and the factors contributing to the slowdown, read the full article on Storeys.com.
Orginal article: Link To Article – provided by Kansas City Realtors