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Cottage Life

Cottage Q&A: Should we disclose that we’re renting out the cottage?

We’re no longer using our cottage as frequently as we used to, but we aren’t ready to sell. We want to start renting it out. Should we tell our neighbours that this is our plan?—Torrie Samson, via email

Yes. A million times, yes. Reverse the situation: “Would you want to be advised?” asks Suzanne Nourse, an etiquette consultant with the Protocol School of Ottawa. “Well, then, there’s your answer.”

We certainly understand why you’re asking. Renters get blamed for all kinds of lakeside sins: playing loud music, partying late, drinking too much, setting off fireworks, attracting bears, owning poorly trained dogs, parenting children who shriek all of the time while swimming…You’re probably dreading a tense and uncomfortable conversation. But telling them “is 100 per cent the polite thing to do,” says J.T. Lowes with All-Season Cottage Rentals in Haliburton, Ont. “We encourage all of our owners to let their neighbours know that they are renting.”

That said, you’re best not to open the door to a discussion by making it seem as if you’re asking their permission (“Would you be okay if…”). Instead, say something like, “ ‘Just giving you a heads-up, the cottage is being rented for the first two weeks of July,’ ” says Nourse. If the neighbours respond that they’re not comfortable with that plan, “I would bite my tongue from saying, ‘Well, that’s not up to you,’ ” says Nourse. “And ask them, ‘Is there anything in particular that you’re concerned about?’ Ask them to be specific, but don’t be confrontational.”

Assure your neighbours that you’ll be vetting the renters and that you’ll have clear rules in place about noise, music, pets, water safety, etc. (Because you will, right?) 

“And let them know that they can alert you when someone is not following those rules, or if they feel that things are getting out of hand,” suggests Jay Simpson, the owner of A Shuswap Holiday in Lee Creek, B.C. One snag: this could backfire if something does go wrong, and the neighbours call expecting an immediate response—not realistic if you live far away. 

In that case, “it’s best to have someone local involved—for example, a property management company,” says Simpson. “That way, if there’s a problem at any time, the neighbours can call someone to go over and have a talk with the renters if need be.” (Bonus? It would also give the renters someone local to call: “We don’t know what’s wrong, but now the toilet just won’t flush!”) 

Good luck, and happy renting.

Got a question for Cottage Q&A? Send it to answers@cottagelife.com.

This article was originally published in the May 2022 issue of Cottage Life magazine.

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Cottage Life

CREA announces pilot project that will show buyers bids in real-time

The Canadian Real Estate Association (CREA) is launching a pilot project that will allow buyers to see registered offers placed on a property as they are submitted.

In partnership with Australian software company Openn Negotiation, CREA, which is in charge of setting national standards for Canadian realtors, has created Openn Offers; a management software that will track real estate offers in real-time, displaying them on a property’s REALTOR.ca listing.

The goal of Openn Offers is to increase transparency and provide buyers with more information when purchasing a property, says Pierre Leduc, media relations spokesperson for CREA. The project is still in the planning process, but Leduc says the association’s aim is to test Openn Offers in select markets across Canada this summer.

Which markets will be selected is still up in the air. Since Canadian real estate is governed at a provincial level each province has its own rules around how a real estate transaction is conducted and what information is allowed to be disclosed. CREA is currently in talks with 11 real estate regulators across the country to determine how Openn Offers will operate in each province.

“Our first step is to define the provincial [regulations] that actually allow this project to be more transparent,” Leduc says. “Then it’s finding boards within the province that are willing to host.”

If Ontario is selected as a host, Leduc says that at a minimum, Openn Offers will show buyers how many offers have been made on a property and what the highest offer is. A recent announcement made by the Ontario government could expand these parameters, though. As of April 1, 2023, sellers in Ontario will have the option to disclose offer amounts in a multi-offer scenario. This option will be voluntary, but it could give buyers a sense of where they rank among the bids and ensure they don’t overpay for the property. This feature wouldn’t kick in on Openn Offers until next year.

Leduc adds that for an offer to be recognized by Open Offers, the buyer needs to be working with a licensed realtor who can process their bid through the system.

CREA’s announcement came only a week after the federal government released its 2022 Budget, in which the feds pledged to eliminate blind bidding from real estate transactions in an effort to make housing prices more affordable.

Blind bidding is the default practice used by real estate agents across Canada in multi-offer scenarios. It requires buyers to bid for a property without knowing the amout of competing offersa common scenario seen in Ontario’s cottage country over the last two years. The crackdown on blind bidding comes after some critics have pointed to it as a culprit in driving up real estate prices. But Katie Steinfeld, broker of record for real estate agency On The Block, disagrees.

“There are situations where one buyer will significantly overpay versus everybody else, and in those situations, I would say for sure that will not help decrease prices.” But this tends to be an exception, Steinfeld says. On The Block operates its own auction platform, providing similar information to what Openn Offers plans to disclose. When the size of competing bids are disclosed in auctions, Steinfeld says she found that prices jumped higher.

“A lot of buyers, their argument is when they’re in a blind bidding situation, they don’t want to go up any higher because they don’t know what the next highest offer is. They don’t want to overpay,” she says. “But if they know what they need to pay in order to get the home, that can push them up even higher.”

Steinfeld says she doesn’t believe eliminating blind bidding will suddenly tame Ontario’s runaway real estate prices, but she does think that CREA’s attempt to provide buyers with more information is a step in the right direction.

“I don’t think this will have an immediate impact. I think opening things up and making things more transparent is going to be a process. But I think it will start helping [the market] out and bring more opportunities and options to buyers and sellers,” she says. “Having more information at their disposal is always a good thing.”

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Cottage Life

Check out these riverfront rentals that are a short drive from Ottawa

With more than 900 lakes and four major river systems, the Ottawa Valley is a nature-lover’s dream. These cottage rentals give you the perfect home base to enjoy it all.

Known as the whitewater capital of Canada, the Ottawa Valley offers some of the fastest, cleanest, and safest rivers in the country, including the Ottawa River. If you and the family are into adventure, it’s the perfect spot to hop in a chartered raft and experience some rapids.

If you’re not looking for quite that much adrenaline, go for a hike in Gatineau Park, with its rugged terrain and stunning views of nearby Ottawa and Gatineau. Or consider touring the area’s local towns. Hawkesbury, Merrickville, and Montebello—among others—offer small-town charm with quaint shopping boutiques, art galleries, and restaurants.

Regardless of how you spend your day, end it on the deck of one of these rentals, drink in hand, as you watch the sun set over the Ottawa River. 

Only a 50-minute drive from Ottawa, Kanien’kehá:ka Roundhouse is located on seven acres of private forest. The rental offers eclectic decor with rockstar memorabilia. Take advantage of the property’s above-ground pool and gazebo, or head into nearby Merrickville to check out the village’s gift shops, art galleries, and restaurants.

Location: Merrickville, Ont.

Price: Averages $229 per night

Sleeps: 4

Bedrooms: 3

Notes:

  • Internet included
  • Laundry on site
  • Above-ground swimming pool
  • BBQ available for use
  • Fire pit

Click here to book


 

This rental features a private dock on the Baie de Carillon, just off of the Ottawa River. Bring your own boat and putter around, play some pool in the game room, or relax in the property’s outdoor hot tub.

Location: Lachute, Que.

Price: Averages $323 per night

Sleeps: 10

Bedrooms: 3

Notes:

  • Riverfront property
  • Internet included
  • Laundry on site
  • Outdoor hot tub
  • BBQ available for use
  • Fire pit

Click here to book


 

Unwind along the Ottawa River in this log cabin. The rental is a short trip from Omega Park, a 12-kilometre driving safari where you can see some of North America’s most unique wildlife, as well as the iconic Château Montebello, from which the cottage gets its name. If you need extra space, the rental also offers a beach house at an extra cost.

Location: Grenville-sur-la-Rouge, Que.

Price: Averages $195 per night

Sleeps: 16

Bedrooms: 5

Notes:

  • Riverfront property
  • Internet included
  • Outdoor hot tub
  • BBQ available for use
  • Kayak available for use

Click here to book


 

Enjoy sunsets over the Ottawa River on this rental’s expansive deck. Take the property’s kayak out for a spin, test your mettle on the foosball and ping pong tables, or sip a drink in the outdoor hot tub. The cottage is only 12 minutes from the Lachute Golf Club and eight minutes from the Presqu’ile-Robillard Ecological Reserve.

Location: Lachute, Que.

Price: Averages $345 per night

Sleeps: 8

Bedrooms: 3

Notes:

  • Riverfront property
  • Internet included
  • Laundry on site
  • Outdoor hot tub
  • Kayak available for use
  • Fire pit

Click here to book


 

A historic property located on the shore of the Ottawa River, Duldraeggan was founded in 1805, making it one of the oldest remaining accommodations in Ontario. Walled in by gardens and trees, the cottage offers peace and privacy. Plus, it’s a short drive from Hawkesbury.

Location: L’Orignal, Ont.

Price: Averages $135 per night

Sleeps: 2

Bedrooms: 1

Notes:

  • Riverfront property
  • Internet included
  • BBQ available for use

Click here to book


 

Nestled on Corbu Bay off of the Ottawa River, this rental’s waterfront feels like a lake. Relax beneath the living room’s cathedral ceiling or on the cottage’s terrace overlooking the water. The property, which is surrounded by trees, offers complete privacy, but if you need something, Ottawa is a quick 35-minute drive away.

Location: Pontiac, Que.

Price: Averages $325 per night

Sleeps: 8

Bedrooms: 4

Notes:

  • Riverfront property
  • Internet included
  • Washing machine on site
  • BBQ available for use
  • Fire pit
  • Two kayaks available for use
  • Summer bookings must be a minimum of seven nights

Click here to book


 

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Cottage Life

Critics of Ontario’s new open bidding policy say it will do little to curb prices

Ontario’s soaring cottage real estate prices may finally see some friction. The province’s Ministry of Government and Consumer Services is rolling out new regulations that will allow people selling their properties to disclose the details of competing offers.

Currently, the Trust in Real Estate Services Act, 2020 (TRESA), forces buyers in a multi-offer scenario to submit a bid without knowing how much competitors are offering, otherwise known as blind bidding. This practice forces buyers to guess what they should offer; in some cases paying thousands of dollars more than the next highest bid.

Over the last two years, multi-offer scenarios have become common in cottage country fueled by high demand being driven by low mortgage rates and an urban exodus during the pandemic. The new TRESA regulations give sellers the option to opt-in for an “open-offer” process, disclosing details of competing bids.

“Sellers will no longer be limited to selling their property through a closed or traditional offer system,” said minister of government and consumer services, Ross Romano, in a statement.

Ontario Real Estate Association (OREA) CEO, Tim Hudak, voiced his approval of the new regulations, saying in a statement that it will make the buying process more transparent while giving homeowners a choice of how they want to sell their properties.

Some critics, however, are saying that by empowering the sellers with the choice to disclose offer details, the new regulations will do little to curb prices. “Home sellers shouldn’t be able to pick and choose when the bidding process is transparent and when it is blind. That defeats the purpose of ending blind bidding since it’s in sellers’ best interest to keep buyers in the dark,” said Ontario’s Green Party leader Mike Schreiner in a statement.

“A consistently transparent bidding process will help bring down the skyrocketing price of houses, and along with other key policies, like expanding zoning and investing in affordable rentals, will help us build an Ontario where everyone has an affordable place to call home.”

The Ontario government announced its “open-offer” alternative just a few weeks after the federal government released its 2022 Budget, which tasked minister of housing, Ahmed Hussen, with creating a Home Buyers’ Bill of Rights. As part of the bill of rights, Hussen will work with each province and territory to end blind bidding and make housing more affordable. It’s uncertain whether Ontario’s new TRESA regulations will meet the bill of rights’ requirements.

The new TRESA regulations are set to take effect on April 1, 2023. On top of providing the “open-offer” alternative to blind bidding, the government is also introducing a new code of ethics for real estate brokerages, brokers, and salespersons, improving professionalism and disclosure obligations.

As part of this process, the Real Estate Council of Ontario (RECO), which is in charge of regulating real estate professionals on behalf of the provincial government, will provide buyers and sellers with a fact-based information guide detailing their rights and options. The government is also expanding RECO’s disciplinary scope to encompass all aspects of the TRESA.

“By giving RECO these powers, we’re streamlining and speeding up the process needed to resolve issues and ensure real consequences for those acting in bad faith,” Romano said.

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Cottage Life

How the federal government’s affordable housing strategies will affect buyers and sellers

On April 7, the federal government released its 2022 budget, which included strategies designed to tackle Canada’s housing crisis, including the lack of affordable housing. Low inventory combined with high demand has driven up housing prices across the country, says a Royal LePage report. In the first quarter of 2022, the price of a single-family home in Canada increased by 25.1 per cent to $856,900.

The cottage market has seen similar effects. In 2021, the national aggregate price of a single-family waterfront home jumped 21.5 per cent to $976,000, according to a Royal LePage report.

“Young people cannot imagine being able to afford the house they grew up in,” reads the 2022 budget. “Foreign investors and speculators are buying up homes that should be for Canadians to own. Rents in our major cities continue to climb, pushing people further and further away from where they work.”

To fill the housing demand, Finance Canada and the Canada Mortgage and Housing Corporation estimate that the country will need to build 3.5 million new homes by 2031. To achieve this goal, the federal government has committed $72 billion in financial support over the next six years towards its affordable housing plan.

The plan’s strategies range from a Home Buyers’ Bill of Rights to tax credits for first-time home buyers. But not everyone’s convinced these strategies will accomplish the federal government’s goal of making housing more affordable.

“[The plan] will not lower housing prices,” says Frank Clayton, a professor at the Toronto Metropolitan University’s Centre for Urban Research and Land Development, in an email. “The best they can do is to slow down price growth over a longer term.”

Clayton does, however, say that he thinks the budget’s Housing Accelerator Fund could be effective. The fund commits $4 billion over the next five years to support the housing development needs of municipalities. How municipalities use the money is flexible, but the goal of the fund is to create 100,000 new housing units over the next five years.

The budget includes a long list of other strategies. To get a better understanding of how the government’s plan will affect buyers and sellers, here’s a breakdown of the key strategies:

A tax-free first home savings account

The budget will introduce a tax-free savings account to help Canadians with the down payment on their first home and ultimately create a more affordable housing strategy. The account will function similar to an RRSP with tax-deductible contributions, and, similar to a TFSA, withdrawals will be non-taxable.

Prospective first-time home buyers will be able to save up to $40,000, with an $8,000 maximum annual deposit. The federal government says it plans to launch the Tax-Free First Home Savings Account in 2023.

Doubling the First-Time Home Buyers’ Tax Credit

On top of the tax-free savings account, the federal government has doubled the First-Time Home Buyers’ Tax Credit to $10,000 in an effort to assist with the significant closing costs associated with buying a home. The tax credit applies to homes bought on or after January 1, 2022.

Creating a Home Buyers’ Bill of Rights

The federal government has pledged to create a Home Buyers’ Bill of Rights to eliminate real estate practices it feels are driving up prices. This includes cottage real estate, not just homes. The two practices the government is targeting are buyers having to forgo property inspections to make their offers more desirable and blind bidding.

The federal government says it will work with provinces and territories to make home inspections a legal right while phasing out blind bidding altogether. Blind bidding is the default practice real estate agents use across Canada when they engage in a multi-offer scenario. It requires buyers to bid for a property without knowing the size of competing offers. In certain circumstances, it can cause a buyer to significantly overbid, inflating the property’s selling price.

But Katie Steinfeld, broker of record for real estate agency On The Block, says that eliminating blind bidding might actually drive up real estate prices. “A lot of buyers, their argument is when they’re in a blind bidding situation, they don’t want to go up any higher because they don’t know what the next highest offer is. They don’t want to overpay,” she says. “But if they know what they need to pay in order to get the home, that can push them up even higher.”

Steinfeld sides with professor Frank Clayton, saying that many of the federal government’s housing policies don’t speak to one another. If Canada wants to see affordable housing, it needs a lot more new inventory than what was proposed in the 2022 budget, she says, especially since the government has opened up its immigration policy and is planning to welcome over 400,000 new immigrants each year.

A two-year ban on foreign investment in Canadian housing

While foreign investment doesn’t play a major role in cottage country, the federal government has argued that it is pricing Canadians out of homes in urban centres, such as Vancouver and Toronto. That’s why the 2022 budget proposes a regulation that would prohibit all foreign commercial enterprises and non-permanent residents from buying residential property for two years. It has yet to be announced when this regulation would go into effect.

Steinfeld, however, argues that the federal government is aiming its restrictions at the wrong group. According to the Canadian Housing Statistics Program, 2.2 per cent of residential properties in Ontario were owned by non-residents in 2020, and 3.1 per cent in B.C. Whereas multiple-property owning Canadians made up 31 per cent of Ontario’s residential real estate market in 2020 and 29 per cent in B.C., with many of the properties used as rentals.

“That is much more significant than the foreign investment piece,” Steinfeld says. “I think that if they would have created policies to require increased down payment from [multiple-property owning Canadians], perhaps that might have had more of an impact versus just banning foreign buyers altogether.”

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Cottage Life

East Coast expected to see biggest cottage price hike in Canada in 2022

Atlantic Canada’s cottage market is expected to remain hot in 2022. Tied with Quebec’s 15 per cent increase, the East Coast is predicted to have the highest recreational property price gain in Canada this year. That includes waterfront cottages, chalets, cabins, and even recreational land used for camper trailers. According to Royal LePage’s Recreational Property report, the average price in Atlantic Canada will rise from $237,000 to $272,550 in 2022.

Following the rest of the country’s cottage markets, the price of an East Coast cottage has been on the rise since the start of the pandemic. Closed borders compelled Canadians to look for domestic retreats, and since many cottage owners have held onto their properties throughout COVID, it has kept inventory low, driving up prices with multiple offers.

Nova Scotia’s market, in particular, has piqued the interest of buyers. Thanks to the province’s affordable prices, Nova Scotia has become a compelling location for Ontario and Quebec prospective owners who have been priced out of their local markets.

“It’s about 50/50,” says Corey Huskilson, a real estate agent in South Shore, N.S. “Maybe even more Nova Scotians, actually. But with regular residential homes, we’re seeing a lot more out-of-province buyers.”

Further out on the Atlantic coast, Newfoundland’s waterfront cottage market has also experienced a jump. Combined with Nova Scotia’s market, the two provinces saw a 39.3 per cent increase in the price of a waterfront cottage between 2020 and 2021, rising from $239,000 to $333,000.

Year-over-year increase of recreational property price in Nova Scotia in 2021

Nova Scotia’s waterfront properties were in demand in 2021. The Annapolis Valley, which is located between two mountain ranges on the western side of the province, near the Bay of Fundy, led the way with a 70 per cent increase. The average price of a cottage rose from $210,000 to $357,000.

Cape Breton, on Nova Scotia’s eastern coast, followed with a 31.6 per cent increase from $266,000 to $333,000. Finally, the South Shore, near Halifax, saw a 16.8 per cent price increase, jumping from $315,000 to $368,000.

Who are the buyers?

As Huskilson said, Nova Scotia’s cottage market has seen interest from both Ontario and Quebec, but that segment will likely taper off in 2022 due to the government introducing a new property tax and a deed transfer tax aimed at out-of-province buyers.

“People who have not just purchased but inherited properties are now going to be paying more than double their yearly expenses for taxes. It’s a big hit. You can’t just sit on it like you normally would. It’s a full-on liability for people,” Huskilson says.

Aside from out-of-province buyers, there’s a lot of interest from young Nova Scotian families, Huskilson says. This segment could continue to grow as remote work becomes more established and out-of-province buyers are dissuaded by the new taxes.

What’s selling and what isn’t?

Waterfront properties are a key commodity right now, both oceanfront and lakefront. Oceanfront properties are more popular as four-season homes or cottages, while lakefront properties are in demand among those looking to take advantage of recreational boating.

“They’re all moving,” Huskilson says. “Everything from three-season, non-insulated, small little camps to high-end cottages.”

Future predictions for Nova Scotia real estate

Even with the new taxes and the reopening of international borders, Huskilson expects 2022 to be a strong year for cottages.

“I think it will hit pretty similar till at least the fall,” he says. “I don’t see a whole lot of change. I see a lot more [cottages] coming on the market, but more buyers are coming out of the woodwork. So, I don’t think it’s going to switch to a buyers’ market by any means.”

Year-over-year increase of recreational property price in Newfoundland in 2021

According to the Royal LePage report, most of Newfoundland’s cottage market is around the island in the province’s Central Region. Between 2020 and 2021, the area’s waterfront cottages saw a 22.1 per cent price increase, raising the average cost from $131,000 to $160,000.

Who are the buyers?

Unlike Nova Scotia, Newfoundland hasn’t had the same attention from out-of-province buyers. Instead, cottages are being snapped up by locals in their 30s or older with secure incomes, says Glenn Larkin, a realtor in Newfoundland’s Avalon Peninsula. Since some sections of the island lack cell service, remote work hasn’t factored into driving sales, but the inability to travel has played a major role.

“People who have a good bit of equity in their house, now they’re saying, ‘Listen, we can’t travel to Florida, let’s let’s buy a summer cottage,’” Larkin says. During the pandemic, he even encountered some buyers who’d sold their Florida properties in favour of a local cottage.

Larkin isn’t convinced that the reopening of international borders in recent months has swayed too many Newfoundland buyers back to sunnier waters as the cottage market remains strong.

What’s selling and what isn’t

It’s not oceanfront that’s attracting cottagers in Newfoundland, it’s pond frontage. Rather than the large chains of lakes found in central Canada, the province features small ponds. Anything within a two-hour drive from St. John’s on a pond is popular, Larkin says.

“Those have sold very well, and have multiple offers, and are not on the market very long.”

Future predictions for Newfoundland real estate

Same as the rest of Canada, Newfoundland is experiencing a lack of inventory, especially in cottages, Larkin says. Compared to 2021, he feels there’s even less inventory on the market, but sales volume remains just as high.

Despite these trends, Larkin says he believes 2022 is going to be a changing of the seasons in terms of Newfoundland’s cottage real estate.

“Interest rates are getting hit. Gas is high. So, the problem you’re gonna run into is: I’m not going to buy a summer cottage that’s two hours away because the gas is too expensive to go to it,” he says. “It will have an effect. The farther [the cottage is] from St. John’s, the harder it’ll be to sell.”

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Cottage real estate region: Haliburton

In Haliburton, with its wide swaths of Crown land, the granite shore can be steep and rugged, flanked by white pines and leafy trees that turn fiery bright in fall. Many lakes are sparsely inhabited by cottagers, but filled with fish. In winter, groomed trails draw recreational snowmobilers. Haliburton’s true claim to superiority over some other Ontario cottage areas, however, may be the drive. Avoid the multi-lane highway, if you like, and the route takes you on two-lane highways and county roads that wind past grain silos, grey barns, and blue lakes.

Cottagers are drawn to Haliburton’s small, quiet lakes, though Kennisis, Kawagama, and Kashagawigamog offer big stretches of water for sailors and windsurfers. Many lakes in this region are reservoirs for the Trent-Severn Waterway farther south. Water levels are controlled by a series of dams and can fluctuate greatly over the course of a season.

For many years, Haliburton was under­valued. But as more buyers from Toronto discover this Shield country, within three hours of the city, those days are ending. As seen in most parts of cottage country, the COVID-19 pandemic has also increased demand in the area. A boat-access cottage that cost $7,000 in the early 1970s could fetch nearly a million dollars or more now.

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A new demographic could be driving up recreational property prices in Alberta

Same as the rest of the country, Alberta isn’t exempt from Canada’s rising recreational property prices, says Royal LePage’s Recreational Property report. Alberta’s average price will continue to go up in 2022 at a nine per cent clip to an average of $1,170,660. Average prices in Alberta had already soared in 2021 by 31.5 per cent to $1,074,000.

Waterfront property isn’t as widely available in the western provinces. Instead, its ski chalets and mountain retreats that are driving up the price. “All properties have been selling extremely well,” says Brad Hawker, the associate broker with Royal LePage Solutions in Canmore, Alta. “It’s not limited to one segment or another.”

Year-over-year increase of recreational property price in Alberta in 2021

When it comes to Alberta, most of the province’s recreational property market is clustered around Edmonton, at least in terms of waterfront properties. Lac Ste. Anne saw the largest recreational property price increase, rising 44.2 per cent from $416,000 to $600,000; Pigeon Lake rose 20.4 per cent from $565,000 to $680,000; and Wabamun Lake rose 16.7 per cent from $762,000 to $889,000. In terms of non-waterfront properties, Canmore had the biggest jump, rising 32.7 per cent from $1,025,000 to $1,360,000.

Who are the buyers?

Canmore broker Brad Hawker has been selling properties in the Canmore area for 30 years. Twenty-eight of those years he’s sold to the same demographic: young people looking for a welcoming community where they can raise a family. Most often, they’re from Western Canada and are also looking for a recreational location. But in the last two years, he’s started to get a lot more interest from Ontario and Quebec retirees.

“A lot of their kids have relocated to Alberta. So, when they look to retire, where do they want to be? Close to their kids and grandkids. Edmonton and Calgary would be nice, but they also want to be active.” he says. “They want to come out to the mountains and ski and hike and mountain bike. That’s been a big part of our market.”

Similar to the rest of the country, Hawker adds that Canmore has also seen its share of millennial families who now work remotely and are looking to get away from the city.

Whereas Alberta’s lake district tends to be popular with Edmonton residents due to its proximity. “Since pandemic restrictions have limited Canadians’ ability to travel abroad, that demand has skyrocketed. Line-ups at boat launches and campgrounds are longer than ever,” says Tom Shearer, a Royal LePage broker with Noralta Real Estate, in the company’s report.

What’s selling and what isn’t?

The short answer is that everything’s selling. This includes waterfront cottages around Alberta’s lakes, as well as mountain retreats in Canmore. However, Canmore tends to be a unique situation. Similar to the rest of Canada, the area is seeing low inventory rates, but this is exacerbated by Canmore’s geography.

“We have very limited inventory, very limited construction, and very limited approval for new projects,” Hawker says, “so, we’re not even getting any relief on the supply side.”

Canmore is located in a valley between two mountain ranges. Both slopes of the mountain ranges have strict no-building policies, the area being used as a wildlife corridor to let animals pass unhindered. To the west, the town has Banff National Park, and to the east is Bow Valley Provincial Park.

“Getting a new land area approved for development takes an extremely long time because of the environmental side of things,” Hawker says. He predicts that within the next 15 years, all of Canmore’s available land will be developed.

Future predictions for Alberta real estate

Both waterfront property and chalet prices are expected to remain high in 2022. “Strong demand for waterfront properties continues to put upward pressure on prices in the region, and I don’t expect there will be any relief this spring,” Shearer said.

The same can be said for Canmore. In 2021, the town saw a record year in real estate sales, but despite the soaring prices, Hawker says he doesn’t expect them to keep rising at the same rate. In fact, he’s already seeing some levelling off. “You can’t keep having record year after record year of sales volume.” Already the first quarter of 2022 has been slower than 2021. Keep in mind, that 2022 sales volume is still 64 per cent higher than the first quarters of the four years preceding the pandemic.

As for what could be causing the levelling off, Hawker points to rising interest rates on mortgages. He expects the rates to start easing back to pre-pandemic levels. And if the pandemic causes a recession, people might not be able to afford their mortgages, making more properties available.

Regardless, Hawker expects that the lack of available land in Canmore will keep supply low, meaning that for the time being, demand will stay high, keeping prices competitive.

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Cottage Life

‘You’re not buying a $4 million property unless you have a lot of dough.’ B.C. recreational property prices skyrocket

It’s no secret—similar to the rest of the country, Western Canada’s cottage prices are on the rise. According to Royal LePage’s Recreational Property report.  B.C. is expected to see the average price of a cottage jump in 2022—a 12 per cent increase to a $1,029,280 average. This trend has continued from 2020, as the average price of a recreational property in B.C. increased by 22.4 per cent to $919,000 in 2021.

The closure of international borders during the pandemic drove cottage prices up as many Canadians sought domestic retreats. But even with international borders reopening, the prices continue to rise.

Unlike Ontario and Quebec, B.C. and Alberta don’t have well-defined “cottage countries.” Any waterfront properties that the provinces have are on the ocean or on a few specific lakes.

Since the areas where you can buy a recreational property in B.C. and Alberta are limited compared to central Canada, the surge in demand during the pandemic has kept inventory low and prices high.

Year-over-year increase of recreational property price in B.C. in 2021

All of British Columbia’s landlocked recreational properties saw an average price increase in 2021. Invermere, near the Alberta border, saw the largest change with an 88.1 per cent increase from $354,000 to $666,000. This was followed by the Comox Valley area, which saw a 28.7 per cent increase from $610,000 to $785,000. And then Pemberton, 25 minutes north of Whistler, increased 24.7 per cent from $1,000,000 to $1,247,000.

In terms of waterfront properties, Central Okanagan saw the biggest jump, with a 20.2 per cent increase from $1,955,000 to $2,350,000.

Who are the buyers?

The people buying waterfront recreational properties in B.C. right now are wealthy families, says Francis Braam, a Royal LePage broker in Kelowna. “Nobody else can afford it. You’re not buying a $4 million property to use on the weekend unless you have a lot of dough.” The same holds true for ski chalets, Braam says.

Interestingly, what Braam isn’t seeing lately is foreign buyers. He points to Big White Ski Resort in Kelowna as an example. “At Big White, we used to have a lot of foreigners who bought property—Europeans, Australians, Americans, they’re gone. It’s 100 per cent a Canadian market now,” he says. “They couldn’t get in for the last two years. Will they ever return? I don’t know. It’ll take time.”

What’s selling and what isn’t?

The average price of a recreational property in B.C. tends to balloon thanks to a couple exclusive areas, namely Whistler and Okanagan Lake. In 2021, the average price of a recreational property in Whistler increased by 14 per cent to $2,738,000. Whistler’s considered one of the best ski resorts in Canada, making chalets close to the hill extremely desirable.

The same applies to Okanagan Lake, which stretches 135 kilometres in length and is home to around 400,000 people. Although, many of the properties on Okanagan Lake are permanent homes, not just cottages, Braam notes. Since Royal Lepage isn’t able to discern what the property’s being used for, these waterfront homes are included in the company’s report, driving up the aggregate price of recreational properties in the area.

Another peculiarity with the report is that it recorded a drop in price for North Okanagan waterfront properties. Out of every cottage market in Canada, this is the only one to see a decrease in price, dropping 3.8 per cent from $1,403,000 in 2020 to $1,350,000 in 2021.

“That would be an anomaly,” Braam says. “If you took a house that sold 18 months ago on the water and then put it on the market today, it’d be worth more money.” What likely happened is that the more affordable properties on the lake sold in the last 18 months or in the last quarter, skewing the aggregate price, he says. “There’s no way the price of that product has gone down.”

Future predictions for B.C. real estate

In the real estate market around Kelowna, Braam says he’s already seeing prices settle. “I don’t think prices are going to drop, but we’re not going to maintain the same pace of two to three per cent per month the way it’s been going up for the last 18 months.”

Thanks to the province’s limited supply of available cottages, Braam doesn’t expect the market to crash. Even now, he only has a month’s worth of available listings. Supply in B.C. is likely to stay low. When you look at the province’s geography, Braam says development is restricted by lakes and mountains. Plus, B.C. has an agricultural land reserve, where large swaths of land are devoted to agriculture.

This means that the province is often restricted to tearing down old homes and building new ones, which is more expensive than developing on available land, Braam says.

“Thirty years ago, we could build a house in 90 days. That same house takes nine months to build now or a year,” he says. “It’s more complicated to build, the consumer has demanded more, they’re not as simple houses to build, and the building code has also made it much more difficult.”

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Cottage Life

Cottage real estate region: South Shore, Nova Scotia

The most famous town on Nova Scotia’s South Shore lends its name to a prized Maritime architectural feature: the “Lunenburg bump,” a protruding dormer over a house’s main entrance. It’s not exclusive to Lunenburg but is seen as a mark of historical authenticity. Chester, closer to Halifax, is known as a summer playground for the well-heeled. Gatsby-esque waterfront places here are priced accordingly, so many people settle for a cottage on a side street, within walking distance of pubs and restaurants, the yacht club, and the theatre. From Chester, the ferry goes to Tancook Island, with its isolated, less expensive waterfront properties. Just west of Lunenburg, Bridgewater is the area’s commercial centre. Downstream, on both sides of the LaHave River, are some lovely shoreline properties with boating opportunities on the tidal estuary.

Along the South Shore, an affordable waterfront home may require some work and renovations to retain its historical character. Drive toward Liverpool and Shelburne and there are spectacular white-sand beaches.