Neighboring Markets Receive Spillovers From Toronto And Vancouver

The sizzling housing markets in Toronto and Vancouver are spilling over to neighboring markets and cottage countries a recent report from Royal LePage specified.

This conversely, is a much probable scenario as many people moving away from the blazing Canadian markets are searching in neighboring markets that are more affordable.

On Tuesday, the 2017 Royal LePage Canadian Recreational Housing Reports pointed out that a related competitive trend present in the Vancouver and Toronto housing markets are showing up into leisure properties.

According to Kevin Somers, chief operating officer at Royal LePage Real Estate Services Limited, in recent months, an increase in sales activities and on the prices of properties in several cottage populations in Ontario and British Columbia were visible. This proliferation is mostly powered by high housing activities in hot housing markets such as Toronto and Vancouver.

As the home prices in these markets continue to rise, many home buyers are searching for other affordable properties. Hence, recreational properties have been enticing a lot of buyers. Countless people have also been buying recreational properties for future use or to scale back when they retire.

In an assessment conducted by Royal LePage, it was found that majority of recreation property specialists across the housing market, distinguished that they are expecting an increase in sales for this year.

During the first quarter of the year, the Canadian recreation property market had a pronounced start with property markets across the nation presenting remarkable growth rates in both prices and sales. According to Somers, this trend is expected to continue all through the year, plus the coming weather conditions are likely to play a role in the market as it will help to moderate the new listings entering the market.

In May, the average price for a recreational property was at $439,000 with Alberta documenting the highest prices gained, as the area experiences a scarcity in property. Royal LePage also noted that New Brunswick logged the lowest average property price.

It was also discovered that foreign investors played very little role in the recreational property market with less than 5% sales to foreign buyers.

J C Loum