The price of recreational property in Canada is expected to decrease in 2023, but the Central Okanagan market is in a strong position after significant increase in value over the last 12 months.
Royal LePage released its annual spring recreational property survey findings this week, and it is forecasting there will be a 4.5% decrease in the aggregate price of a single-family recreation home this year. That includes a projected 2% drop in B.C. Royal LePage’s forecast for 2023 is not broken down by region.
“After two years of relentless year-round competition, Canada’s recreational property markets have slowed and returned to traditional seasonal sales patterns,” Royal LePage CEO Phil Soper said in a press release.
“While interest rate hikes have less of an impact on the recreational market than homes in urban settings, because families typically put more money down and borrow less, general consumer inflation combined with a severe lack of inventory has dampened sales activity.
“Buyers who are active in today’s market appear willing to wait for the right property—a sharp contrast to what we experienced during the pandemic.”
The report found that single-family recreational home prices in the Central Okanagan increased 16.3% between 2021 and 2022, jumping from $886,000 to $1,030,000. The increase in condominium recreational home cost had a similar jump, increasing 16.2%, from $415,000 to $482,300.
According to the survey, 54% of B.C. recreational property experts said the trend of homeowners moving back to urban or suburban communities after relocating to their region full-time during the pandemic was not common, which is one of the reasons there is a supply shortage.
At the same time, respondents to the survey said demand for recreational properties in B.C. had decreased significantly.