Gen X Leads the Charge in Canada's Cottage Market: Remax 2023 Cottage Trends Report
Saturday May 13th, 2023
Gen X Leads the Charge in Canada's Cottage Market: Remax 2023 Cottage Trends Report
The Canadian cottage market has witnessed a significant shift as Generation X takes the lead in recreational property transactions, fueled by the $1 trillion transfer of wealth from Baby Boomers and the search for more affordable housing options. With 91% of recreational regions surveyed experiencing increased activity from Gen X buyers, this trend is reshaping the landscape of cottage country. This blog delves into the details of the Remax 2023 Cottage Trends Report, discussing the performance of various regions in Canada, the preferences of buyers, and the factors driving the market.
Key Statistics:
11% of Canadians currently own a cottage, and an equal percentage plan to purchase one.
36% of Canadians are attracted to the quality of life that a cottage affords compared to urban/larger city centers.
51% of those who own or plan to buy a cottage cite the opportunity to pass it down to family as a key motivator.
69% of Canadians are hesitant to invest in a cottage due to economic uncertainty.
57% of those set to inherit a cottage are confident they can handle the associated costs.
18% of Canadians who plan to buy a recreational property intend to rent it out for income purposes.
42% of cottage owners are purposely waiting to sell to have the opportunity to pass it down.
48% of cottage owners said working with a real estate agent led them to consider succession planning.
74% of cottage owners believe they can pass down their property with proper planning.
Provincial Overview:
Alberta:
Canmore: Canmore's average residential sale price rose by 8.2% to $974,000. However, the number of sales decreased by 49.71% to 87, compared to
173 sales in Q1 2022. The year-end average price estimate for 2023 is $1,051,920, a 20% drop from the previous year.
Sylvan Lake and surrounding areas: The average sale price increased by 20.6% to $509,500, but the number of sales dropped by 24.39% to 31,
compared to 41 sales in Q1 2022. The year-end average price estimate for 2023 is $509,500, a 5% decrease from the previous year.
British Columbia:
Tofino: There is no available data for the average residential sale price in Tofino for Q1 2023. The number of sales decreased to 0, a 100% drop compared to
4 sales in Q1 2022. No year-end average price estimate data is available for 2023.
Ucluelet: The average sale price increased by 12% to $764,000. However, the number of sales decreased by 45.45% to 6, compared to 11 sales in Q1 2022.
The year-end average price estimate for 2023 is $764,000, a 46% decrease from the previous year.
Whistler: Whistler's average residential sale price decreased by 13.4% to $1,623,452. The number of sales dropped by 48.2% to 115, compared to
222 sales in Q1 2022. There is no available data for the year-end average price estimate for 2023.
Ontario:
Ontario's cottage market experienced varied trends in Q1 2023:
Bruce Peninsula & Sauble Beach: The average sale price dropped by 18.8% to $633,772, and the number of sales decreased by 33.33% to 48, compared to
72 sales in Q1 2022. The year-end average price estimate for 2023 is $560,888, with no data available for the year-over-year change.
Grand Bend: The average residential sale price decreased by 16.7% to $912,135, while the number of sales dropped by 31.58% to 26, compared to 38 sales
in Q1 2022. The year-end average price estimate for 2023 is $912,135, a 10% decrease from the previous year.
Greater Sudbury, Manitoulin & French River: The average sale price decreased by 20.7% to $553,665, and the number of sales dropped by
42.50% to 23, compared to 40 sales in Q1 2022. The year-end average price estimate for 2023 is $581,348, a 5% decrease from the previous year.
Haliburton: The average residential sale price decreased by 26% to $643,549, and the number of sales dropped by 57.84% to 43, compared to 102 sales in
Q1 2022. The year-end average price estimate for2023 is $656,420, a 10% decrease from the previous year.
Kenora and Lake-of-the-Woods: The average sale price dropped significantly by 59.9% to $341,700, while the number of sales decreased by 28.57% to 5,
compared to 7 sales in Q1 2022. The year-end average price estimate for 2023 is $319,490, a 25% decrease from the previous year.
Lake Simcoe: The average residential sale price increased by 5.9% to $1,800,000, but the number of sales dropped by 60% to 10, compared to
25 sales in Q1 2022. The year-end average price estimate for 2023 is $1,904,400, with no year-over-year change.
Muskoka: The average sale price decreased by 14% to $841,887, and the number of sales dropped by 34.51% to 186, compared to 284 sales in Q1 2022.
The year-end average price estimate for 2023 is $858,725, a 5% decrease from the previous year.
Peterborough and the Kawarthas: The average residential sale price decreased by 31% to $855,858, while the number of sales dropped by 48.39% to 32,
compared to 62 sales in Q1 2022. The year-end average price estimate for 2023 is $890,092, a 15% decrease from the previous year.
Prince Edward County: The average sale price increased by 16.8% to $1,373,069, but the number of sales decreased by 31.82% to 15, compared to
22 sales in Q1 2022. The year-end average price estimate for 2023 is $1,400,530, a 2% increase from the previous year.
Rideau Lakes: The average residential sale price decreased by 5% to $939,950, and the number of sales dropped by 9.09% to 10, compared to 11 sales
in Q1 2022. The year-end average price estimate for 2023 is $930,551, a 5% decrease from the previous year.
Southern Georgian Bay: The average sale price decreased by 18.5% to $870,899, while the number of sales dropped by 39.65% to 309, compared to
512 sales in Q1 2022. The year-end average price estimate for 2023 is $857,836, a 4.5% increase from the previous year.
Windsor-Essex: The average residential sale price decreased by 22.61% to $541,356, and the number of sales dropped by 44.12% to 988, compared to
1,768 sales in Q1 2022. The year-end average price estimate for 2023 is $557,597, a 35% increase from the previous year.
Nova Scotia:
Annapolis Valley: The average sale price increased by 3.5% to $244,166, but the number of sales decreased by 33% to 6, compared to 9 sales in Q1 2022.
The year-end average price estimate for 2023 is $256,374, a 20% decrease from the previous year.
Sydney/Cape Breton: The average residential sale price increased by 15.3% to $197,861, while the number of sales dropped by 37% to 173, compared to
273 sales in Q1 2022. The year-end average price estimate for 2023 is $214,877, with no data available for the year-over-year change.
Prince Edward Island:
Central PEI: No data is available for the average residential sale price or the number of sales in Central PEI for Q1 2023. There is also no data available for the
year-end average price estimate for 2023.
Charlottetown Area: The average sale price increased by 9.2% to $292,550, but the number of sales decreased by 29% to 17, compared to 24 sales in
Q1 2022. No year-end average price estimate data is available for 2023, but there is a 5% year-over-year change.
Newfoundland and Labrador:
St. John's: The average residential sale price increased by 3% to $251,667, while the number of sales dropped by 46% to 7, compared to 13 sales in Q1 2022.
The year-end average price estimate for 2023 is $264,250, a 30% decrease from the previous year.
Market Outlook:
Following record-setting activity in 2022, 50% of recreational markets have now shifted towards more balanced conditions. Economic uncertainties in late
2022 and early 2023 have led to a tapering of demand, but real estate professionals expect consumer confidence to rise as "cottage season" approaches and
throughout the year. Overall, average residential sale prices are anticipated to rise by 0.9%.
Top Consumer Segments and Preferences:
Retirees (82%), families (68%), and couples (55%) are the top three consumer segments driving activity in the market. Waterfront properties (77%) and access to recreational activities (59%), such as skiing and water sports, are the most sought-after features of recreational markets.
In conclusion, the Canadian cottage market trends in Q1 2023 varied across provinces, with some regions experiencing growth in average sale prices while others saw declines. Additionally, the number of sales generally decreased across the board. It is essential to monitor local market trends and consult with real estate professionals to make informed decisions when buying or selling a cottage.
The trends observed in this report suggest that potential buyers and sellers must be aware of the fluctuations in the market and tailor their decisions based on the specific region they are interested in. With the constantly changing market conditions, it's crucial to stay informed and adapt to the prevailing trends.
Summary:
The Remax 2023 Cottage Trends Report highlights the growing influence of Generation X in the Canadian cottage market, as the intergenerational wealth transfer provides them with the means to drive demand. Understanding the regional trends and preferences of buyers is crucial for both buyers and sellers to make informed decisions and achieve their real estate goals. With the market expected to heat up in tandem with the temperature, it's essential to stay informed and adapt to the prevailing trends in the dynamic Canadian cottage market.
Source: 2023 Remax Cottage Trends Report
This report was prepared by.
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Sami Chowdhury
Broker
RE/MAX Realtron Realty Inc., Brokerage
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