Royal LePage survey finds recreational property prices continue to rise

TORONTO, June 5, 2007 - Despite rising cottage and gas prices, the number of Canadians committed to owning their own getaway retreat has increased since last summer, with 12 per cent of Canadians planning to or considering buying a recreational property in the next three years, according to the 2007 Royal LePage Recreational Property Report released today.

However, the rising prices at the pumps may trump the passions of some, as almost one quarter (23%) of Canadian cottage owners will reduce the number of trips they make to their cottages this summer, while 12 per cent of owners may consider selling their property if gas prices continue to rise.

The 2007 Royal LePage Recreational Property report comprises a nationwide research poll of Canadian cottage owner and buyer attitudes and actions (conducted by Maritz Research) and an extensive 51-market analysis of recreational property prices, trends and activity in selected leisure markets across Canada.

Those looking to buy recreational properties will find more affordable properties in the east, as balanced markets and anticipated new developments characterize the majority of Atlantic Canada, while stronger demand and cottage prices that commonly inch up toward $500,000 typify Ontario's market. Looking west to Alberta and British Columbia, cottage seekers will find some of the country's most expensive cottage real estate, accompanied by very tight inventory levels.

"Our research reveals that the demand for recreational property continues to far exceed supply across Canada, causing cottage prices to rise at a much quicker rate than the overall housing market. A standard waterfront, land access property increased by 13 per cent over the past year, with properties ranging from under $100,000 to over $1 million," said Phil Soper, president and CEO, Royal LePage Real Estate Services. "Families are managing the affordability challenge with creativity and personal flexibility. Prospective purchasers on a budget can still find a cottage or cabin, but they may have to accept a longer weekend commute, seek alternate ownership options or subsidize ownership through rental income."

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Lisa Tollis, Sales Representative

Royal LePage State Realty, Brokerage.

www.LisaTollis.ca

courtesy: Royal LePage Canada