Canadian cottage market shows signs of slowing: Re/Max report
Fewer people ore looking at buying a recreational property, resulting in slower sales, an increased number of listings on the market and prices that are only slightly higher or flat compared with a year ago, according to a report from Re/Max.
The real-estate sales company said Tuesday that of the 45 markets surveyed across the country, about 91 per cent were considered to be transitioning away from a strong selling conditions to one that's more balanced between buyers and sellers.
Only a handful of markets managed to buck the trend - in Saskatchewan, Salt Spring Island, B.C., and Newfoundland's east coast - mostly because fewer properties were listed in those areas.
Despite stabilizing prices, the Canadian recreational market saw a "substantial increase" in property listings for the first four months of this year, Re/Max said.
But fewer properties were selling, Re/Max said. About 67 per cent of the markets reported softer year-to-date sales at the end of April, while average prices were stable or moderately higher over 2007.
Contributing to the slowdown were adverse winter weather conditions during the first four months of the year, worries about a turbulent economy and higher gasoline prices.
Some Canadians are using the stronger loonie as motivation to invest in properties south of the border, especially in states like Florida, Arizona, Texas, and California.
Also biting into the market's strength was affordability, which was cited as a key issue in 35 per cent of the markets surveyed. Prices have climbed in recent years as demand for waterfront locations soared.
"Market conditions have shifted, but don't expect to see bargain-basement prices or fire sales," said Michael Polzler, executive vice-president of Re/Max Ontario-Atlantic Canada.
"The influx of new listings has yet to translate into downward pressure on recreational property prices. Prime waterfront properties, while more plentiful than in year's past, will still command top dollar."
Re/Max said that a good selection of entry-level waterfront is available across the country with 18 per cent of the markets offering locations with an asking price below $200,000.
By David Friend, The Canadian Press