Winter cottage prices increased 7.8% this year, Royal LePage says

2023-11-29 15:53:17

The winter cottage market is resisting the effect of rising interest rates. Despite a moderation in activity, prices are increasing at most resorts, according to a report released Wednesday by Royal LePage.

During the first 10 months of the year, the median price of single-family homes located near ski resorts increased 7.8% to $501,600 compared to the previous year. Condominiums in the same sectors, for their part, saw their value increase by 4.9% to stand at $399,300.

People who buy winter recreational property are wealthy and feel less of the effects of rising interest rates, says Éric Léger, real estate broker in the Laurentides sector at Royal LePage.

“We don’t feel too much of a major impact on our markets because these people still have a certain level of savings and financial stability which has allowed them to realize this dream,” he answers in an interview.

Properties therefore have no difficulty finding buyers. “This is why we are not seeing a significant increase in the inventory of properties for sale in our regions. »

The market is still showing signs of moderation. The number of single-family transactions in the sector fell by 8.5%, still for the first ten months of the year. The drop is 22.8% for co-ownerships.

In this context of moderation, Royal LePage anticipates that prices for single-family homes in areas near a ski resort will increase by 1.8%.

The rarity of this type of property, however, allows prices to be supported, despite this lull. In this context, demand remains strong, but overbidding situations are now much rarer, observes Véronique Boucher, broker in the Estrie region at Royal LePage.

She emphasizes that sales times are a little longer and that the negotiation process has returned to “normal”. “So, we observe that there are negotiations on the prices displayed, currently. These are not huge negotiations, but we are really in a situation of one-upmanship. With a few exceptions, but it’s not like it used to be. »

Both brokers believe that this is still a seller’s advantage market. “I don’t think the buyer has the big end of the negotiation stick, because there is still a scarcity,” replies Mr. Léger.

Even if they have the “big end of the stick”, many owners are not in a hurry to sell in a tight market. “You know, selling is a great deal, but you have to relocate and costs are high everywhere,” adds the broker.

The end of short-term rentals?

One thing is certain, the interest of investors who buy with a view to renting their property short-term on a platform like Airbnb has faded while several municipalities tighten their rules.

“Definitely, someone who wants to rent short term and who is considering buying, it is a market that is shrinking, shrinking, shrinking, not to say that it is destined to disappear in a good number of municipalities,” notes Mr. Léger.

This trend will probably not have a big impact on the market while several popular sectors already imposed constraints on short-term rentals, adds Ms. Boucher. “It was already very difficult in our area. It’s not really welcome. »

To watch on video

1701293213
#Winter #cottage #prices #increased #year #Royal #LePage