This past year, during the pandemic, has kept us all close to home and redefined how we plan to spend vacations and downtime. We moved in the new direction of desiring a home in the country or on a lake. Somewhere we can wake up and see beautiful, picturesque views with nature right on our doorstep. A home kept safely nestled away from the hustle and bustle of a big city. This yearning to stay close to home has started a ripple effect in the Canadian real estate market. The market is no longer strictly about buyers and sellers. It has now branched out to include people wanting to own homes that can make every day feel like a holiday. This is the driving force behind the upward trend we are now witnessing on the recreational property sales side of the market. As more and more people make the transition to working from home and move towards finding the perfect work-life balance this trend will continue.
2021 Canadian Recreational Property Forecast
Royal LePage has just released a very interesting and informative article on this topic. They have revised their 2021 recreational property forecast (originally released in November 2020) to reflect the upward trajectory of the market. In November 2020, they predicted that the price of a recreational home in Canada would increase by 8% in 2021. Flashing forward to March 2021, they have updated their projection to a rise in the cost of 15%. The forefront of the reason behind such dramatic inflation being the demand from buyers outpacing the existing properties currently available on the market. Royal LePage is stating that 91% of recreational real estate experts in Canada are reporting a significant supply and demand shortfall than is typical. These shortfalls are leading buyers into a multiple-offer position, which in turn is steering properties to sell well above their original asking prices. This situation has led to a cyclical domino effect wherein a buyer, seeing there are so few properties on the market, will hesitate to list their home, concerned they will be unable to locate a new home to purchase before they sell. Focusing on British Columbia’s recreational property market, Royal LePage is disclosing that 40% of buyers are making an average of four to seven offers before completing a home purchase and 88% of recreational experts are reporting a notable decrease in inventory in their markets.
The Right Realtor For You
Now, after going over all of those statistics, it can seem like a daunting task to either put your home on the market or to start your recreational home buying journey. It can be assured that it doesn’t have to be. Finding the right realtor that exclusively understands their market inside and out is the key. They bring with them an in-depth perception of the most current real estate trends and will help guide you through the buying/selling trek. Desiree Brodhurst, from Kelowna Art and Home, can assist you with finding or listing your recreational property today! Check out her available listings below.