2021 Cabin & Cottage Trends Across Canada

 

Canadians opt for more affordability and new lifestyle, flocking to recreational property market

57 per cent of markets offer properties below $500K, according to RE/MAX brokers and agents

• Average sale price anticipated to rise up to 30% in some recreational property markets, according to RE/MAX brokers and agents.
• 44 per cent of recreational property buyers are budgeting $200,000-$500,000 in the next 12 months.
• 57 per cent of Canadian recreational markets include at least one property type within the $200K-$500K price range.

Kelowna, BC and Toronto, ON, May 18, 2021 – The red-hot demand seen in Canada’s urban centres has migrated into recreational markets, as interest and activity in suburban and rural properties continues to grow. Despite rising demand, 57 per cent of Canadian recreational markets still have at least one property type with an average price below $500,000, according to the 2021 RE/MAX Recreational Property Report. Furthermore, 57 per cent of RE/MAX brokers and agents in recreational markets anticipate single-digit price growth over the remainder of 2021.

According to a Leger survey conducted on behalf of RE/MAX, more than half of those who plan to purchase a recreational property in the next year (59 per cent) are first-time recreational property buyers. Twenty-one per cent of Canadians are looking to recreational markets after being priced out of an urban centre. Low borrowing rates are working in their favour, with 22 per cent saying the lower rates have increased their ability to buy.

The survey also found that 11 per cent of Canadians were searching for a recreational property prior to the start of the pandemic and are still searching, and 15 per cent of Canadians who were not searching for a recreational property prior to the pandemic are now looking.

DOWNLOAD THE COMPLETE REPORT HERE

Shifting home-buying trends, as prompted by the pandemic, are exacerbating inventory challenges in a majority of recreational markets across Canada. The growing demand in these regions is also putting upward pressure on prices which is impacting affordability in many recreational markets, which RE/MAX brokers anticipate will be a long-term trend. Tofino, Ucluelet and Niagara regions, to name but a few, are experiencing low inventory levels, bidding wars and sky-high prices.

“There’s intense competition among buyers in Canada’s recreational property markets and inventory is stretched thin,” says Christopher Alexander, Chief Strategy Officer and Executive Vice President, RE/MAX of Ontario-Atlantic Canada. “But Canadians recognize that recreational properties remain an affordable option in such a turbulent market. There are still many recreational markets across Canada that are deemed affordable, despite the growing demand and rising prices.”

Affordability Outlook

According to RE/MAX brokers and agents, sellers’ market-like conditions are anticipated to persist for the remainder of the year in 97 per cent of regions examined in the report. These conditions are typically accompanied by rising prices, which has been a trend in 2020 that is expected to continue through 2021. RE/MAX brokers report that 57 per cent of Canada’s recreational markets include at least one property type priced in the $200,000 – <$500,000 range. This is down from 87 per cent in 2019.

The most affordable recreational regions for waterfront properties across Canada include Thunder Bay ($425,805), Charlottetown ($334,447) and the Interlake Region of Manitoba ($363,833), while Okanagan ($2,430,434), Barrie-Innisfil ($1,841,217) and Niagara region ($1,546,561) are the most expensive recreational property markets for waterfront properties.

Western Canada Focus (Average Sale Price)

Click HERE for the Regional Breakdown

Regional Market Highlights

Western Canada

A majority of Western Canada’s recreational markets are sellers’ markets, including Whistler, Shuswap, Canmore, Tofino, Ucluelet, Central Okanagan and Interlake Region of Manitoba. Most regions are seeing multiple offer scenarios, driving prices up for most property types. Out-of-province buyers – typically from Ontario – are looking to Canmore in pursuit of recreation and achieve greater work-life balance. With work-from-home conditions, demand has spiked and prices of non-waterfront properties in Canmore have increased by 26 per cent since 2019. Out-of-province buyers from the Lower Mainland and Vancouver Island are eyeing Tofino and Ucluelet, as well as out-of-country buyers from California. Both are looking to the region for the desire to relocate from urban centres and for a secondary residence.

With low inventory in Manitoba’s Interlake Region, prices of waterfront properties have increased by 43 per cent since 2019. Most activity is driven by buyers from within the province, typically families, millennial couples or investors looking for an affordable option outside of urban centres. With most buyers working from home in the region, good Wi-Fi access has become a top priority.

Ontario

All of Ontario’s recreational markets are sellers’ markets, with low inventory and high demand. These regions include Bancroft, Barrie-Innisfil, Haliburton, Kenora, Muskoka, Niagara region, Parry Sound, Peterborough and The Kawarthas, Prince Edward County, Sudbury and Thunder Bay to name a few.

Young families, many from the GTA and Hamilton, are now looking to Muskoka after feeling priced out of urban centres. This is impacting supply and affordability in the region, with average sale price of waterfront properties in Muskoka anticipated to increase by 20 per cent this year. Prince Edward County is seeing an uptick in buyers with work-from-home allowances, as well as retirees, who are considered to be driving the most market activity in the region.

In Niagara region, the average sale price of waterfront properties reached $1,546,561 in the first four months of 2021, a 77-per-cent increase from an average sale price of $875,036 in 2019. Strong price growth since 2019 was also evident in Niagara’s water-access properties, which increased 160 per cent, from $506,700 in 2019 to $1,317,500 in 2021. Continued price growth for these property types is anticipated through the remainder of the year, by nine per cent and eight per cent, respectively. Families looking for a secondary residence are the key drivers of market activity in the region. Strong interest from this cohort is anticipated to continue, with Niagara’s close proximity to Crystal Beach, Port Colborne, Niagara Falls and Grimsby.

Atlantic Canada

In Atlantic Canada, recreational property markets are experiencing similar conditions as local residential markets and other recreational markets nation-wide, with low inventory and high demand putting upward pressure on prices.

Charlottetown is a sellers’ market, with sales being driven by out-of-province buyers. A local RE/MAX broker reports that the region has become more attractive thanks to the province’s positioning as one of the safer communities in Canada, based on the number of COVID-19 cases and hospitalizations. This has put pressure on the region’s inventory, which was already struggling to meet demand. In 2021, recreational property prices in Charlottetown are anticipated to increase by five per cent for waterfront properties and seven per cent for non-waterfront properties.

The Halifax region is also experiencing sellers’ market conditions, with low inventory and high demand. Market activity is being driven by out-of-province buyers, with increased interest resulting from the pandemic and strict lockdown measures in other parts of Canada, along with increased flexibility to work remotely. The average sale price of waterfront properties in Halifax is $698,104, a 53-per-cent increase from 2019 ($456,515). In 2021, the average sale price of waterfront properties is projected to increase by seven per cent.

New Brunswick is also experiencing sellers’ market condition. For example, recreational property sales in St. Andrews are being driven by out-of-province buyers, thanks to the region’s lower average sale price compared to large urban centres. Low inventory is putting an upward pressure on waterfront properties, average sale price saw an increase of 132 per cent since 2019, rising from $320,000 to $741,650. The average sale price of waterfront properties is anticipated to increase by five per cent over the remainder of the year.

“In today’s real estate landscape, with increased demand and ongoing supply issues putting pressure on prices and sparking bidding wars, industry professionalism is of utmost importance,” says Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. “Recreational markets across Canada are feeling the pressure, and without a solution to address supply issues, we are running out of affordable options for Canadians.”

Unsurprisingly, affordability remains the top buying criteria for 41 per cent of Canadians who are in the market for a recreational property, followed by proximity to water or waterfront, amenities and good Wi-Fi. With demand for recreational properties anticipated to remain strong for the remainder of the year, lifestyle factors typically found in city homes, such as restaurants, Internet connection and office space are expected to remain a priority among buyers.

About the 2021 RE/MAX Recreational Property Report

The 2021 RE/MAX Recreational Property Report includes data and insights from RE/MAX brokerages. RE/MAX brokers and agents are surveyed on market activity and local developments. Average sale price prediction range is reflective of all property types in a region and varies depending on the region. Regional summaries with additional broker insights can be found at RE/MAX.ca.

Know someone moving ANYWHERE in the WORLD? 

Call us today--we know the BEST agents everywhere!!

 

Serving Abbotsford, Chilliwack, Mission, Langley, Surrey and the WORLD!

 

Office Phone: 604-743-7653

The Gelderman.ca Real Estate Team general WEB SITE: gelderman.ca

The Gelderman.ca Real Estate Team Luxury Division: fvluxuryhomes.com

 

Near record-breaking new listings in the 

Fraser Valley not enough to match 

insatiable buyer demand

Fraser Valley’s extraordinary pandemic real estate market continued to break  sales records – for the ninth consecutive month – while at the same time,  reaching near-historic levels of new listings in May.      In May, the Fraser Valley Real Estate Board (FVREB) processed 2,951 sales  on its Multiple Listing Service® (MLS®), an increase of 267 per cent compared  to May 2020 and a 2 per cent decrease compared to April. (Note that last year,  the market was significantly restricted due to the lockdown.) The previous record  high for sales in May for the Fraser Valley region was 2,911 in 2016.      Larry Anderson, President of the Board, said, “Demand hasn’t changed. What’s  changed is supply. In the last three months, buyers have 40 per cent more  inventory to look at in the Fraser Valley and it’s allowed them to take back a little   control.    “We’re seeing resistance to multiple offers and buyers adjusting their offers, or  even waiting, because they have more selection. We’re a long way from a  balanced market, but supply is helping us to head in the right direction.”   In May, the Board received the second-highest volume of new listings ever;   approaching May 2018 levels. The Board received 3,926 new listings in May,  an increase of 78 per cent compared to last year, and a decrease of 22 per cent   compared to April 2021. The month ended with total active inventory sitting at  5,868, a 3 per cent decrease compared to April, and 9 per cent less than May  of last year.      Baldev Gill, Chief Executive Officer of the Board, added, “In the context of   BC’s Restart Plan, it’s important to remind consumers that for now, when it comes  to working with a real estate professional or booking a private showing, it’s  status quo. Currently, there is no easing of pandemic restrictions in the real estate  sector and our Board does not anticipate new guidelines for several weeks.  Your REALTOR® will continue to guide you safely through the buying and selling  process, following all public safety protocols, for as long as necessary.”   Across Fraser Valley, in May, the average number of days to sell a single-family  detached home was 14 and a townhome was 12 days. Apartments took, on  average, 20 days to sell. MLS® HPI Benchmark Price Activity Single Family Detached: At $1,323,300, the Benchmark price for an FVREB single-family detached home increased 2.3 per cent compared to April 2021 and increased 33.6 per cent compared to May 2020. Townhomes: At $670,000, the Benchmark price for an FVREB townhome increased 2.7 per cent compared to April 2021 and increased 20.7 per cent compared to May 2020. Apartments: At $488,500, the Benchmark price for an FVREB apartment/condo increased 2.0 per cent compared to April 2021 and increased 12.6 per cent compared to May 2020. For the FULL Statistics Package click HERE Know someone moving ANYWHERE in the WORLD?  Call us today--we know the BEST agents everywhere!!   Serving Abbotsford, Chilliwack, Mission, Langley, Surrey and the WORLD!   Office Phone: 604-743-7653 Visit our main Web Site gelderman.ca Visit our Luxury Property Web Site fvluxuryhomes.com

Fraser Valley Housing Market Statistics - April 2021

Monthly sales and new listings in the Fraser Valley continue blistering pace; surge in inventory starting to calm prices

 

For the eighth consecutive month, Fraser Valley real estate saw record-breaking  sales with April topping the previous monthly high set in 2016. The 2020/2021  pandemic seller’s market in the Fraser Valley has now surpassed the previous  longest stretch of seven consecutive, record-breaking months, last set in  2015/2016. In April, the Fraser Valley Real Estate Board (FVREB) processed 3,016 sales  on its Multiple Listing Service® (MLS®), an increase of 338 per cent compared  to April 2020 and a 9 per cent decrease compared to March. (Note that sales  and new listings in April 2020 were significantly restricted due to the pandemic  lockdown.) The previous record high for sales in April was 2,969 in 2016. Larry Anderson, President of the Board, said, “Although it remains very  competitive and challenging for buyers, April could be the turning point in this  historic market. In the last couple of weeks, we have seen evidence of a  change in pace.   “In general, we’re seeing fewer multiple offers, fewer subject-free offers, and  homes over-priced are starting to sit longer. These are positive signs that the  market is responding to near-record levels of new inventory.”   The Board received the highest volume of new listings ever in March 2021 and  that elevated pace continued in April. Last month, the Board received 5,018 new  listings, an increase of 254 per cent compared to April 2020, and a decrease of  1 per cent compared to March 2021. The influx of new listings improved supply  with total active inventory reaching 6,030 in April 2021, 20 per cent higher than  in March and the highest it’s been in six months.   Baldev Gill, Chief Executive Officer of the Board, added, “Buyers and sellers will  note that we’re already seeing increases in home prices start to slow in response  to the new supply. “If you have an active listing now or are thinking of selling, it’s critical to work  with a professional REALTOR® to ensure your asking price is realistic and  competitive based on today’s market, not yesterday’s.”   Across Fraser Valley, in March, the average number of days to sell a  single-family detached home was 13 and a townhome was 10 days. Apartments took, on average, 22 days to sell. MLS® HPI Benchmark Price Activity Single Family Detached: At $1,293,300, the Benchmark price for an FVREB single-family detached home increased 4.5 per cent compared to March 2021 and increased 30.3 per cent compared to April 2020. Townhomes: At $652,400, the Benchmark price for an FVREB townhome increased 4.5 per cent compared to March 2021 and increased 18.0 per cent compared to April 2020. Apartments: At $478,700, the Benchmark price for an FVREB apartment/condo increased 2.9 per cent compared to March 2021 and increased 9.3 per cent compared to April 2020. For the FULL STATISTICS Package, click HERE Know someone moving ANYWHERE in the WORLD?  Call us today--we know the BEST agents everywhere!! Serving Abbotsford, Chilliwack, Mission, Langley, Surrey and the WORLD!   Office Phone: 604-743-7653 Visit Our Web Site: geldmerna.ca Visit Our Luxury Home Web Site: fvluxuryhomes.com

Canadian Real Estate Renovation Trends (2021)

 

Canadians invest in home renovations 

to improve quality of life, not to add value in current 

Canadian real estate market

• Challenging Canadian housing market conditions put additional importance to home renovations since the start of COVID-19, both for those looking to stay and those selling
• More than half of Canadians renovated their home in 2020 with the intention of living in it, with 29% renovating to enhance their lifestyle for non-essential reasons (aesthetic and/or recreational purposes) and 29% doing so for essential reasons (safety and maintenance)
• Only 16% of Canadians said they renovated to increase the market value of their home in order to sell within in the next one to three years 

A new report by RE/MAX Canada is shedding light on shifting consumer trends in home renovations and the perceived return on investment (ROI), as impacted by COVID-19 and historically tight conditions across the Canadian real estate market. The RE/MAX 2021 Renovation Investment Report found that more than half of Canadians renovated their home last year for personal or “non-ROI” purposes, with three in 10 (29 per cent) choosing to renovate for non-essential “lifestyle” reasons, such as recreation-inspired projects.

A Leger survey conducted on behalf of RE/MAX Canada found lifestyle impact to be the top reason for renovating during the course of the pandemic, ahead of motives such as making essential renovations to accommodate life in lockdown (17 per cent), or to increase the value of the home with the intention of selling in the next one to three years (16 per cent).

Despite the trend of home renovations for personal use and enjoyment, 59 per cent of Canadians still said they always consider the return on investment that a renovation will have on their home’s overall market value, so while there is a current renovation trend based on lifestyle aspirations, practicality is never far from the surface.

“The notion of the home as an investment continues to be an important consideration for Canadian homeowners; however, they clearly value the home for what it is meant to be: a place to live and enjoy spending time,” says Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. “The pandemic has influenced virtually every aspect of our lives, including what Canadians want and need in a home. The uncertainty also compelled many sellers to move to the sidelines or renovate their home to accommodate current quality-of-life needs, which has further tightened conditions across many Canadian real estate markets.”

This lack of inventory is expected to be a continuing factor in the spring housing market across Canada. In its market outlook for 2021, RE/MAX identified seller’s market conditions in 82 per cent of regions, with a noted spike in demand for single-family dwellings putting additional pressure on already limited supply.

“Canadian real estate has continued to perform above and beyond expectations, with an increased opportunity for sellers to see a strong return on their investment given current demand,” says Christopher Alexander, Chief Strategy Officer and Executive Vice President, RE/MAX of Ontario-Atlantic Canada. “As we’ve seen over the past year, strong seller’s markets continue to dominate many regions across Canada, with homes selling in record time and at record prices. While the impact that specific renovations have on ROI will vary by regional conditions, the Canadian housing market has generally shown us that you can’t go wrong with anything that improves your home in any way.”

With this in mind, nearly one year after the start of cross-country lockdowns, Canadians are still making renovation decisions based on pandemic living, with over half (55 per cent) of survey respondents stating that they have already done or would like to do a home renovation within the next year. Of this group, 35 per cent say they would opt for minor renovations, such as painting.

RE/MAX brokers across Canada were also surveyed for the report and identified fresh paint and landscaping as two upgrades that yield a high ROI, despite being low-budget and minor in nature. This is in alignment with and good news for the nearly half (47 per cent) of Canadians who said they would want to keep their home improvement budget below $10,000, even if the guaranteed ROI was at least 10 per cent. Three in 10 Canadians (31 per cent) would bump up their spending from $10,000 to just under $50,000, and only four per cent would consider spending more than $50,000.

Sixty-five per cent of RE/MAX brokers surveyed also claim that kitchen upgrades, including cabinets, countertops and appliances, yield the highest ROI for sellers, with 87 per cent of brokers naming the kitchen renovation as the top home improvement resonating with buyers in the Canadian real estate market.

Download the infographic HERE

Download the table HERE

Renovations and Canadian Real Estate: Regional Market Insights

In Western Canada, Calgary, Edmonton and Victoria, homebuyers want the move-in-ready experience, with homes that are already entirely renovated being most in demand. Given this, sellers in these regions have the potential to see a large return on their renovation investment. In Greater Vancouver, outdoor improvements are one of the optimal ways for homeowners to get the best ROI, with landscaping among the top five renovations to undertake. It’s also one of the most common renovations that homeowners in this region are taking on themselves, versus hiring a professional to do the work.

Throughout Ontario, RE/MAX brokers are reporting that listings are selling quickly, regardless of their condition or renovation status. Regions including Toronto, Ottawa, Hamilton-Burlington, Niagara, London and Kingston/Napanee saw a strong shift toward outdoor upgrades and amenities in 2020, specifically the addition of a pool or larger exterior living area. Much of this demand was prompted by COVID-19 and the desire for more recreational space within the home – a trend that is not anticipated to be a permanent one. Bathroom renovations and new flooring are highly regarded as yielding the best return on investment. Across markets such as Mississauga, Thunder Bay, London, Barrie and Ottawa, painting is noted by RE/MAX brokers as the top renovation that homeowners are doing themselves, as well as one of the best ways to also see an improvement on ROI.

In Atlantic Canada provinces, RE/MAX brokers also placed importance on upgraded kitchens, but noted flooring upgrades as one of the best renovations for homeowners to get optimal ROI in regions including Fredericton, Saint John and St. John’s. Meanwhile in Charlottetown, roofing upgrades and landscaping are two of the top renovations that can be done relatively quickly to improve ROI, along with painting, as echoed across nearly all regions surveyed. In Saint John, the finished basement is one of the most sought-after renovations by buyers and creating more open-concept spaces is noted as one of the top three ways for sellers to get the best return on their investment.

Consumers’ Understanding of ROI

Only 51 per cent of Canadians claimed to have a thorough grasp of the renovation process and nearly half either don’t know or disagree that they have the understanding needed to make ROI-enhancing renovation decisions. Furthermore, 50 per cent of Canadians surveyed said they expect their REALTOR® to advise them on the right renovations to take on if they expressed interest in doing so when purchasing a home. This reliance on external professionals to guide home-buying decisions is anticipated to continue.

Additional highlights from the 2021 RE/MAX Renovation Investment Report

• When it comes to the renovations that yield the best return on investment, Canadians see these as the best renovations to undertake:
  • 70% of Canadians state redesigning larger spaces, such as kitchens or washrooms
  • 56% of Canadians state minor updates, such as refreshing paint
  • 55% of Canadians state landscaping the outdoor space
  • 50% of Canadians state changing the home layout, including adding rooms or knocking down walls
  • 32% of Canadians state updating décor and furniture
• 49% of Canadians prefer to contract out most or all of the renovation work
• 33% of Canadians consider themselves to be very capable when it comes to home renovations, and don’t need professional help

About the 2021 RE/MAX Renovation Investment Report
The 2021 RE/MAX Renovation Investment Report includes data from RE/MAX brokerages. RE/MAX brokers and agents are surveyed on insights and local developments. Regional summaries with additional broker insights can be found at remax.ca.

About Leger
Leger is the largest Canadian-owned full-service market research firm. An online survey of 1,540 Canadians was completed between February 4-7, 2021, using Leger’s online panel. Leger’s online panel has approximately 400,000 members nationally and has a retention rate of 90 per cent. A probability sample of the same size would yield a margin of error of +/- 2.5 per cent, 19 times out of 20.

Visit our Web sites and check out what we have going on!

gelderman.ca

And for our Luxury Home Division 

fvluxuryhomes.com

Know someone moving ANYWHERE in the WORLD? Call us today--we know the BEST agents everywhere!!

 

Serving Abbotsford, Chilliwack, Mission, Langley, Surrey and the WORLD!

 

Office Phone: 604-743-7653