Prices of recreational properties expected to continue to rise in 2021
If you are hoping to purchase a property soon, but you're waiting for the prices to drop (or even level out), you might be waiting for a while.
Royal LePage is predicting prices for recreational properties are going to increase 15 per cent in 2021 for an average of $502,730--this is in addition to the 16-per-cent price increase recreational properties experienced during 2020.
According to experts, this is due to the fact the demand significantly outweighs the supply, as many Canadians are eschewing city life and moving to cottage country.
Additionally, real estate professionals are reporting more than half of Ontario's recreational properties are selling for more than the asking price.
“The low inventory, high demand scenario that is defining Canada’s current real estate landscape can be frustrating for buyers and their agents,” Phil Soper, president and CEO of Royal LePage, said in a news release.
“Without enough supply to meet demand, prices continue to increase at above normal rates. And with so few listings to choose from, owners are concerned they will have nowhere to go if they sell before buying, so they hesitate to list. This cycle makes it difficult for anyone to move ahead," he continued.
Further, in Ontario, real estate professionals are reporting their clients are getting an average of four to 10 offers before selling.
“As no one has been able to travel for the last year, buyers of all ages and stages of life are looking for recreational properties that offer the flexibility, and internet quality, that will allow them to work remotely if they choose, but also have rental potential," Chris Winney, a broker with Royal LePage ProAlliance Realty, said in the same release.
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