Economic recovery to power Alberta’s recreational property sales volume

THINK OUTSIDE THE BOX: “Very little can replace the magnificent experiences and memories a recreational sanctuary away from the city can bring.”

Sales activity in Alberta’s recreational property market is set to experience a boost as an effect of a steadily improving economy, according to Royal LePage’s 2017 Canadian Recreational Housing Report released last week.

“Market conditions are favourable to buyers in the province’s recreational property segment, with prices having declined or remained flat for the last couple years during the economic slowdown,” Royal LePage Benchmark sales representative John Hripko said. “Buyers are currently recognizing that they’re in the midst of a very opportune time, cashing in on depressed property values while they can.”

“With the economy improving, and consumer confidence strengthening across the province, we expect to see an upswing in demand for discretionary purchases like recreational properties in the near term, which will ultimately put upward pressure on prices,” he added.

Alberta proved to be a study in contrasts, with mixed performances in regional markets.

“Particularly, regions closest to the major centres of Calgary and Edmonton have begun to see their markets turn a corner, with slight year-over-year 2 price increases so far in 2017, while those closer to harder-hit regions, like Red Deer, have witnessed a slight depreciation during the same period,” the Royal LePage report explained.

Overall, however, Alberta posted the highest provincial aggregate price in Canada at $816,700, “as a result of the province’s limited availability of lakefront property near major metropolitan areas and a growing level of demand from buyers electing to stay within the province due to current economic realities.”

“There is a perception in the Alberta marketplace that recreational properties are undervalued,” Hripko noted. “Buyers purchasing recreational homes believe they are making a sound investment that enables them to capture a piece of the good life. Very little can replace the magnificent experiences and memories a recreational sanctuary away from the city can bring.”

Ephraim Vecina         MortgageBrokernews.ca            26 Jun 2017

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