Vancouverites and Torontonians may be sparking bidding wars over vacation homes in their provinces, but it’s Alberta that has Canada’s priciest cottages.
That’s according to the latest analysis of the Canadian recreational property market by Royal LePage.
A home away from home in Alberta costs $816,700, said the real estate agency. The price reflects a weighted average that takes into account different property types.
That’s significantly more than buyers are paying even in British Columbia and Ontario, where the frenzied mindset of the Vancouver and Toronto real estate markets is spreading to cottage country, according to Royal LePage.
WATCH: Personal finance guru Preet Banerjee on buying or selling a cottage
Why do Alberta’s cottages cost so much?
Prices in the province were driven primarily by a “limited availability of lakefront property in close proximity to major city centres,” as well as a growing demand stemming from a recovering local economy, the report noted.
READ MORE: To buy or rent a cottage? These 5 questions will help you decide
“Unlike many other oil-producing provinces, where home values have remained constrained, in part due to the impact of commodity prices, recreational properties near Calgary and Edmonton have held their value remarkably well in the face of the recent economic downturn, especially when compared to other market segments,” said Kevin Somers, chief operating officer at Royal LePage Real Estate Services.
Here’s how much it costs to buy a cottage in each Canadian province, from the priciest to the least expensive market:
1) Alberta – $816,700.
Not the whole province is doing as well as Calgary and Edmonton. Markets near major oil-producing cities like Red Deer reported price declines, according to Royal LePage’s survey. Across the region, though, sales volumes should pick up as the economy continues to improve.
2) British Columbia – $595,100.
It’s a hot hot recreational real estate market that awaits B.C. buyers this summer. Both prices and sales are expected to keep climbing.
3) Ontario – $413,000.
Lots of buyers are chasing a decreasing number of available vacation homes in Ontario. Prices are trending up as a result.
4) Quebec – $318,700.
Buyers from Ontario and the U.S. are propping up property prices here. “The Mont-Tremblant and Charlevoix regions saw an increase in buyers from Toronto, possibly a result of the staggering rise in property prices in Ontario that has crossed well beyond the major centres,” said François Léger, agency owner, Royal LePage Humania. Americans, on the other hand, are taking advantage of the weak Canadian dollar to snatch some prime vacation real estate.
5) Saskatchewan – $297,200.
With oil and potash prices languishing, prices and inventory levels are flat-lining as well.
6) Nova Scotia – $260,700.
The province has the priciest cottages of any Atlantic province, and prices are up from 2016.
7) Manitoba – $238,600.
The story here is the same as in Saskatchewan: Flat readings as the economy muddles through.
8) Prince Edward Island – $225,500.
A cottage in P.E.I. is a steal compared to the rest of Canada – and some international buyers have noticed. Unlike most other provinces, where foreign ownership accounts for less than five percent of the market, in P.E.I. that’s between five and 10 percent.
9) Newfoundland – $191,700.
Prices and sales are down compared to 2016, as a sputtering energy sector continues to create economic uncertainty.
10) New Brunswick – $179,500.
You can buy a lakefront property near Fredericton for only $86,700, roughly one-sixth of what you’d likely have to fork out for a similar cottage in the B.C. coastline.
Comments