| Cottage properties a valuable commodity; prices
rising across the country, says RE/MAX |
| MISSISSAUGA, ON, June 26 /CNW/ - Demand for
affordable, entry-level recreational properties has placed upward
pressure on starting prices across the country, according to the
RE/MAX 2001 Cottage Country Report. |
| "Although recreational property owners will be
delighted with the news, some of the country's most affordable
cottage country is slipping from consumer grasp," says Pamela
Alexander, CEO, RE/MAX Ontario-Atlantic Canada. "Less than half
of the markets surveyed offered year-round cottages priced at under
$150,000. Those that could be purchased at reasonable prices were
situated on smaller lakes and quite a distance away from major
epicenters." |
| The RE/MAX 2001 Cottage Country Report covered 31
recreational property markets from New Brunswick to British
Columbia, including 21 in Ontario. Although demand was greatest for
entry-level cottages under $150,000, only 14 of the areas surveyed
offered three-bedroom, winterized cottages starting within the
$150,000 price range. |
| "Long gone are the cottages of our youth,"
says Alexander. "Rustic cottages, especially those located in
prime areas like Muskoka, Georgian Bay, and Lake Simcoe, are often
demolished to make room for larger, 'boomerized' year-round
residences that offer all the amenities of home. The trend towards
construction has now clearly expanded to include smaller lakes and
river systems across Canada." |
| Winterized cottages in both Ontario's Pembroke and
Kingston areas rose approximately 12 per cent to $90,000 this year.
In the Parry Sound District, values for a three-bedroom, winterized
cottage have appreciated 10 per cent to $110,000. |
| Starting prices in more expensive recreational
property markets have also increased. For example, the starting
price for a three-bedroom winterized cottage on Lake Okanagan in
Kelowna, B.C. appreciated 28 per cent over one year ago to $225,000.
In Ontario, the same property on the western shore of Lake Simcoe
between Innisfil and Oro appreciated close to 21 per cent to
$290,000. Bracebridge, Gravenhurst, Wasaga Beach, Collingwood, and
Midland Point all reported waterfront increases in excess of 10 per
cent. In Quebec's Mt. Tremblant, starting prices for winterized
cottages jumped 14 per cent. |
| The report also found that the lack of inventory on
the market has had an impact on sales of recreational properties
year to date, as has one of the worst winter seasons on record. |
| "The market for recreational properties is
surprisingly strong," says Alexander. "It has continued to
thrive, in spite of inclement weather, volatile stock market
activity, and an economic downturn." |
| The demand for waterfront property reflects a return
to a more traditional lifestyle, one that solely concentrates on the
family, explains Alexander. "At this pace, pressure on existing
cottage properties across the country is expected to have a
substantial impact on both sales and prices. We've already
experienced a shift toward secondary markets -- we suspect that
cottaging will evolve even further in the years to come." |
| Other highlights include: |
- Baby boomers continue to fuel demand for waterfront
properties.
- Starting prices for waterfront properties are most expensive
in Whistler. A three -bedroom cottage on a 75 ft. lot starts at
$1.5 million.
- American buyers have played a role in fueling activity for
waterfront properties from Lake Okanagan and Sylvan Lake in the
West to the picturesque shores of Prince Edward Island and Nova
Scotia.
- Sales over $1 million have tapered on Lakes Muskoka, Rosseau,
and Joseph. Over 60 properties are listed for sale for between
$1 million and close to $5 million. One-third of the cottages
have been recently constructed.
- On Lake Simcoe, between Innisfil and Oro, prices for
waterfront properties have now reached 1988 levels.
- A growing number of empty nesters are purchasing year-round
lakefront residences and commuting to and from larger centers,
in large part due to the advent of the internet and relaxed
company policies.
- Condominiums in areas like Collingwood, Mt. Tremblant,
Whistler and Kelowna offer an affordable alternative to
waterfront cottages.
|
| RE/MAX is Canada's leading real estate organization
with over 10,000 Sales Associates situated throughout its more than
500 independently owned and operated offices across the country.
RE/MAX lists and sells more real estate than any other real estate
network in the world -- more than one million transaction sides in
the last year. |
|
| http://files.newswire.ca/40/remaxreport.pdf |
| (*)Based on publicly available information and on an
audit by Arthur Anderson of 1997 RE/MAX residential real estate
transaction sides in North America only. |
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