House prices in Canada's popular ski regions soar 23.5% as demand continues to outstrip supply

Single-family detached homes forecast to increase 9.5% in 2022

• Quebec's Bromont region posted the highest year-over-year median price appreciation in the single-family detached segment (58.7% to $607,000)
• Median price of Ontario's Southern Georgian Bay condominiums increased 51.4% year-over-year to $651,000; the highest appreciation of all recreational areas surveyed
• Whistler, B.C., and Mont-Tremblant, Quebec, are the only two regions that reported an increase in U.S. buyer demand since the reopening of the land border earlier this year

TORONTO, Dec. 8, 2021 /CNW/ - According to a recent Royal LePage report, year-over-year home price appreciation¹ in Canada's popular ski regions has soared since the beginning of 2021, driven by strong demand amid continued low supply. Nationally, the median price of a single-family detached home increased 23.5% year-over-year to $791,100.

Canadians' ability to work remotely, an increased desire for more space with access to nature, and the opportunity to reconnect with family continues to draw buyers to recreational markets. The strength of the demand pipeline is a result of new buyers competing against those who were unable to transact last year, due to low inventory.  

"For those who can continue to work from home indefinitely, 'home' can be just about anywhere in the country with a decent Wi-Fi connection, including at the base of a mountain," said Phil Soper, president and CEO, Royal LePage. "Despite the easing of travel restrictions and the reopening of some international borders, the global pandemic, which confined millions of people to their own homes in 2020, remains a real concern. As such, many Canadians are choosing to take advantage of local recreational markets over travelling abroad."

All regions surveyed reported having less inventory this year, compared to 2020 and compared to a typical pre-pandemic year. According to Royal LePage recreational market experts, there was no increase in demand from U.S. buyers following the lifting of land border restrictions in any of the regions surveyed, with the exception of Whistler, British Columbia, and Mont-Tremblant, Quebec; two internationally-recognized ski regions. Most regions surveyed reported an increase in demand for luxury properties.²

"Canada's recreational housing markets, just like major urban centres and suburbs from coast to coast, are experiencing a chronic supply shortage as growing demand persists, fuelling strong price appreciation. This demand is consistent across all price ranges, including in the luxury recreational market," added Soper.

Royal LePage is forecasting that the median price of a single-family detached home in Canada's recreational ski regions will increase 9.5 per cent over the next year to $866,300.

Price data and insights for the Royal LePage 2021 Winter Recreational Property Report were compiled at the start of November, 2021, prior to the flooding in British Columbia. As the impact on recreational property activity in and around the affected regions is yet to be determined, some B.C. markets have been removed from this report.

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¹ Median price and sales data for 14 popular ski regions across Canada was compiled and analyzed by Royal LePage for the periods between January 1, 2021 and October 31, 2021, and January 1, 2020 and October 31, 2020. Data was sourced through local brokerages and boards in each of the surveyed regions.

²The luxury market is defined regionally by local Royal LePage market experts.

Data chart - Royal LePage 2021 Winter Recreational Property Report:
rlp.ca/table_2021winterrecreationalreport

REGIONAL SUMMARIES

Quebec

Mont-Tremblant (Mont-Tremblant, Saint-Faustin-Lac-Carré, La Conception)

Since the beginning of the year, the median price of a single-family detached home near Mont-Tremblant increased 21.8 per cent year-over-year to $405,000, while sales increased 7.4 per cent during the same period. The median price of a condominium in the region remained stable, decreasing 0.3 per cent year-over-year to $329,000, while sales increased 29.6 per cent during the same period. For those looking for a property slopeside or within walking distance of the base of the mountain, the starting price is typically $1,000,000 for a single-family detached home and $500,000 for a condominium.

"During the pandemic, the Mont-Tremblant region welcomed many new households looking for a secondary or primary residence," said Louis Bernier, manager and real estate broker, Mont-Tremblant Real Estate, a division of Royal LePage. "The region attracted not only buyers from within the province; we are also seeing a significant increase in demand from the United States as well. Affordability, its multitude of lakes and the variety of year-round activities available, not to mention the fact that Mont-Tremblant is a world class resort in North America, are just some of the reasons the area has garnered international attention."

Bernier added that demand for luxury homes in Mont-Tremblant has risen since the onset of the pandemic.

Royal LePage is forecasting that the median price of a single-family detached home in Mont-Tremblant will increase 8.0 per cent over the next year.

Mont Saint-Sauveur (Saint-Sauveur, Morin-Heights, Piedmont)

Since the beginning of the year, the median price of a single-family detached home near Mont Saint-Sauveur increased 32.4 per cent year-over-year to $470,000, while sales decreased 16.6 per cent during the same period. The median price of a condominium in the region increased 26.4 per cent year-over-year to $312,300, while sales remained stable, decreasing 0.8 per cent during the same period. For those looking for a property slopeside or within walking distance of the base of the mountain, the starting price is typically $500,000 for a single-family detached home and $300,000 for a condominium.

The ability to continue working remotely and an increase in demand for luxury real estate are among the driving forces of price growth in the area, according to Royal LePage experts.

"We've seen a strong migration of buyers from the Greater Montreal Area in search of a peaceful and spacious place to work since the onset of the pandemic," said Éric Léger, real estate broker, Royal LePage Humania. "As proximity to the workplace is no longer a priority, the Laurentians quickly became a top choice for buyers."

Royal LePage is forecasting that the median price of a single-family detached home in Mont Saint-Sauveur will increase 7.5 per cent over the next year.

Mont Bromont, Sutton and Orford

Much like other regions, single-family detached homes in Estrie's recreational markets have seen significant price appreciation. Since the beginning of the year, the median price of a single-family detached home in Bromont, Sutton and Orford increased 58.7 per cent, 2.3 per cent and 30.2 per cent year-over-year to $607,000, $452,500 and $410,000, respectively. In terms of sales, single-family detached homes in Bromont, Sutton and Orford posted a decline of 36.7 per cent, 25.8 per cent and 10.0 per cent, respectively during the same period. Meanwhile, the median price of a condominium rose 41.1 per cent to $381,000 in Bromont and 15.2 per cent to $230,000 in Orford, while sales decreased 33.9 per cent and 32.2 per cent, respectively. For those looking for a property slopeside or within walking distance of the base of the mountain, the starting price is typically between $400,000 and $450,000 for a single-family detached home, and between $140,000 and $250,000 for a condominium, across the regions surveyed.

"Real estate demand around Estrie's popular ski mountains has been strong since the start of the year, with buyers coming in droves from Montreal's south shore," said Christian Longpré,  co-owner and real estate broker, Royal LePage Au Sommet. "We anticipate a modest increase in supply between now and the spring, which could slow price appreciation in the region."

Royal LePage is forecasting that the median price of a single-family detached home will increase by 6.0 per cent in Bromont, 3.0 per cent, in Sutton and 5.0 per cent over the next year.

Stoneham and Lac-Beauport
(Stoneham-et-Tewkesbury, Lac Delage, St-Gabriel-de-Valcartier, Lac-Beauport)

Since the beginning of the year, the median price of a single-family detached home in the Stoneham and Lac-Beauport areas increased 17.1 per cent year-over-year to $410,000, while sales decreased 19.7 per cent during the same period. For those looking for a property slopeside or within walking distance of the base of the mountain, the starting price is typically $700,000 for a single-family detached home and $250,000 for a condominium.

"Properties in the region around the $400,000 mark are virtually non-existent as demand in the  mid-range continues to be strong," said Marc Bonenfant, real estate broker, Royal LePage Inter-Québec. "As a result, many properties are being sold at a significantly higher price than the valuations of financial institutions. The upcoming interest rate increases are expected to slow price appreciation in the second half of 2022, resulting in some much-needed supply."

Bonenfant added that price appreciation in 2022 is expected to be driven by the high-end segment of the market, where room for growth remains.

Royal LePage is forecasting that the median price of a single-family detached home in the Stoneham and Lac-Beauport region will increase 3.5 per cent over the next year.

Data chart - Royal LePage 2021 Winter Recreational Property Report:
rlp.ca/table_2021winterrecreationalreport

Ontario

Southern Georgian Bay (Collingwood/Meaford/Thornbury)

Since the beginning of 2021, the median price of a single-family detached home in Southern Georgian Bay's recreational property market increased 29.5 per cent year-over-year to $725,000, while the median price of a condominium increased 51.4 per cent to $651,000. However, for those looking to buy a house or condominium slopeside or at mountain base, starting prices are typically $1,500,000 and $900,000, respectively. Total sales were up just two per cent in the region year-over-year, as a result of extremely low inventory.

"In addition to its proximity to the ski hills of Blue Mountain, the region is a great place to live and work, all year round," said Desmond von Teichman, broker, Royal LePage Locations North. "Prices have been rising at a historic pace for the last several years, as demand continues to increase across all property types. Luxury recreational properties have been in particularly high demand, compared to the pre-pandemic market."

While Blue Mountain remains a significant draw to the region, properties located in Southern Georgian Bay are also in close proximity to a number of private ski clubs, including Craigleith, Alpine and Osler Bluffs.

Royal LePage is forecasting that the median price of a single-family detached home in Southern Georgian Bay will increase 15.0 per cent over the next year, and expects even greater price appreciation in the condominium segment, popular among city dwellers who enjoy skiing on the weekends.

Data chart - Royal LePage 2021 Winter Recreational Property Report:
rlp.ca/table_2021winterrecreationalreport

Alberta

Canmore

Since the beginning of 2021, the median price of a single-family detached home in Canmore's recreational property market increased 25.2 per cent year-over-year to $1,234,000, while the median price of an apartment/condominium increased 6.0 per cent to $585,000. However, for those looking to buy a house or condominium slopeside or at mountain base, starting prices are typically $725,000 and $595,000, respectively. Total sales were up 67 per cent in the region year-over-year.

"Since the first lockdown was lifted in May of 2020, Canmore has seen home sales volumes jump to record highs. An increasing number of buyers are looking for properties that can be used for short-term and long-term rental," said Brad Hawker, sales representative, Royal LePage Solutions. "This level of activity is unsustainable, however, as the current low inventory will not be able to keep up with growing demand. This imbalance continues to put upward pressure on prices."

Hawker added that demand is driven by retirees looking to relocate to a dynamic community like Canmore where they can be close to Banff National Park, as well as remote workers who are seeking a quieter lifestyle with access to nature and outdoor activities.

Royal LePage is forecasting that the median price of a single-family detached home in Canmore will rise 10.0 per cent over the next year, led by increased activity in the single-family detached home segment.

Data chart - Royal LePage 2021 Winter Recreational Property Report:
rlp.ca/table_2021winterrecreationalreport

British Columbia

Whistler

Since the beginning of 2021, the median price of a single-family detached home in Whistler's recreational property market increased 12.2 per cent year-over-year to $2,200,000, while the median price of a condominium increased 17.7 per cent to $798,000. However, for those looking to buy a house or condominium slopeside or at mountain base, starting prices are typically $2,225,000 and $800,000, respectively. Total sales were up 44 per cent in the region year-over-year.

"Home prices in the region have reached historically high levels, as demand continues to outstrip available inventory," said Frank Ingham, associate broker, Royal LePage Sussex. "Most buyers are in their mid-forties to mid-fifties from Vancouver, looking for a secondary property - a place to escape the city and enjoy winter activities on the weekends."

Ingham noted a significant increase in demand for luxury recreational properties this year, compared to a typical season prior to the pandemic, as buyers are seeking accommodations for more people, and for longer stays.

"We've also seen an uptick in activity from our neighbours south of the border. Whistler and the surrounding areas of Pemberton and Squamish have always been popular recreation destinations for skiers and mountain bikers from Seattle, Washington. With the beneficial exchange rate and Canada's handling of the COVID-19 pandemic, I'm not surprised that so many Americans are looking to purchase properties here," added Ingham.

Ingham added that the recent flooding in southwestern B.C. has not impacted market activity in the region. A fresh snowfall made for an excellent opening ski day on Whistler and Blackcomb Mountains at the end of November.

Royal LePage is forecasting that the median price of a single-family detached home in Whistler will rise 4.0 per cent over the next year, due to a continued shortage of housing supply.

Invermere

Since the beginning of 2021, the median price of a single-family detached home in Invermere's recreational property market increased 20.5 per cent year-over-year to $559,000, while the median price of a condominium increased 27.0 per cent to $244,200. However, for those looking to buy a house or condominium slopeside or at mountain base, starting prices are typically $380,000 and $225,000, respectively. Total sales were up 48 per cent in the region year-over-year.

"Over the last two years, demand in the region has remained consistently higher than in the years prior to the pandemic, as many Canadians re-evaluate their lifestyles and what they want out of a home and a community," said Barry Benson, broker, Royal LePage Rockies West Realty. "Invermere is more than just a recreational destination. It offers great value for buyers who are looking for more space, work-life balance and a better quality of life, year-round. The ability to work remotely has made that option possible for more families."

Benson added that activity in the region has not been directly affected by recent flooding elsewhere in the province, as the main source of demand comes from Alberta buyers.

Royal LePage is forecasting that the median price of a single-family detached home in Invermere will increase 7.0 per cent over the next year, as demand continues to rise.

Revelstoke

Since the beginning of 2021, the median price of a single-family detached home in Revelstoke's recreational property market increased 19.3 per cent year-over-year to $751,500, while the median price of a condominium increased 6.2 per cent to $563,000. However, for those looking to buy a house or condominium slopeside or at mountain base, starting prices are typically $3,000,000 and $450,000, respectively. Total sales were up 30 per cent in the region year-over-year.

"New developments will be completed in Revelstoke over the course of the next two years, which will help to relieve some of the pressure on supply. However, prices are expected to continue rising, as demand remains very strong across all housing types," said Don Teuton, broker and owner, Royal LePage Revelstoke. "As a popular destination for skiing, snowboarding, snowmobiling and other outdoor winter adventures, the region has always attracted recreational property buyers. Today, there is increased demand for primary residences from those who wish to work remotely from a small town."

Teuton noted that while the region has not been directly affected by recent flooding elsewhere in the province, market activity is currently experiencing its usual seasonal slowdown.

Royal LePage is forecasting that the median price of a single-family detached home in Revelstoke will rise 10.0 per cent over the next year, as high demand continues to outstrip supply. The total number of sales is expected to decrease over the coming year, due to a significant lack of inventory.

Mount Washington/Comox Valley

Since the beginning of 2021, the median price of a single-family detached home in the Mount Washington/Comox Valley region's recreational property market increased 33.3 per cent year-over-year to $800,000, while the median price of a condominium increased 19.1 per cent to $375,000. However, for those looking to buy a house or condominium slopeside or at mountain base, starting prices are typically $900,000 and $325,000, respectively. Total sales were up 14 per cent in the region year-over-year.

"Mount Washington is a popular choice among ski and snowboard enthusiasts, as well as families looking to get away from the city and enjoy nature together," said Rick Gibson, sales representative, Royal LePage in the Comox Valley. "There is strong appeal in the summer months as well. Being just 45 minutes from the coast and close to lots of great restaurants, shops and golf courses, the region is in high demand among buyers seeking a year-round recreational property, as well as those looking to relocate permanently; a growing trend in recent years."

Gibson noted that demand from lower mainland buyers has increased in recent months, as a result of forest fire and flooding issues elsewhere in the province.

Royal LePage is forecasting that the median price of a single-family detached home in the region of Mount Washington/Comox Valley will rise 10.0 per cent over the next year, due to continued strong demand and low supply.

Data chart - Royal LePage 2021 Winter Recreational Property Report:
rlp.ca/table_2021winterrecreationalreport

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About the Royal LePage Winter Recreational Property Report

The 2021 Royal LePage Winter Recreational Property Report compiles insights, data and forecasts from 14 popular ski regions. Median price and sales data was compiled and analyzed by Royal LePage for the period between January 1, 2021 and October 31, 2021 and January 1, 2020 and October 31, 2020. Data was sourced through local brokerages and boards in each of the surveyed regions. Data availability is based on a transactional threshold and whether regional data is available using the report's standard housing types.

About Royal LePage

Serving Canadians since 1913, Royal LePage is the country's leading provider of services to real estate brokerages, with a network of approximately 19,000 real estate professionals in over 600 locations nationwide. Royal LePage is the only Canadian real estate company to have its own charitable foundation, the Royal LePage Shelter Foundation, dedicated to supporting women's and children's shelters and educational programs aimed at ending domestic violence. Royal LePage is a Bridgemarq Real Estate Services Inc. company, a TSX-listed corporation trading under the symbolTSX:BRE. For more information, please visit www.royallepage.ca.

SOURCE Royal LePage Real Estate Services

Meghan Edwards, North Strategic on behalf of Royal LePage, [email protected], [phone]