Whereas fewer Canadians could also be trying to purchase a vacation home in some areas in contrast with years previous, a brand new report says costs are anticipated to extend in 2025 as demand nonetheless outpaces provide throughout most markets.
The report launched Wednesday by Royal LePage forecasts the median worth of a single-family residence in Canada’s so-called leisure areas to rise 4 per cent year-over-year to $652,808.
The nationwide improve displays anticipated worth boosts in every provincial market, led by an eight per cent appreciation in Atlantic Canada to a median worth of $498,852, and a 7.5 per cent improve in Quebec to $457,198.
Alberta stays the priciest province to personal a leisure residence, with Royal LePage forecasting a two per cent bump within the median worth of a single-family property to almost $1.3 million, adopted by B.C. at $951,762 — additionally a two per cent improve.
Ontario is available in third at an anticipated median worth of $647,107, which might be one per cent above 2024.
Within the least costly area, which mixes Manitoba and Saskatchewan, the report forecasts the median worth to go up 4.5 per cent to $310,052.
Royal LePage president and CEO Phil Soper stated demand for leisure properties stays robust however balanced after three years of double-digit worth progress throughout and after the pandemic.
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He stated many households nonetheless have a “deep-rooted want” to personal a trip residence and that’s unlikely to alter, even amid financial uncertainty and geopolitical tensions.
“The pandemic-era scramble for leisure properties, as soon as paying homage to a modern-day gold rush, has fortunately eased — together with the chaos of bidding wars and skinny inventories,” Soper stated in an announcement.
“Whereas the mainstream market is extra delicate to financial shifts, demand within the leisure phase stays steadfast, even during times of market hesitation.”
In a survey of greater than 150 Royal LePage actual property representatives who concentrate on the leisure market, 46 per cent reported demand was about the identical in contrast with final yr. Just below one-quarter reported extra demand, whereas the identical quantity reported much less demand.
The report famous that falling rates of interest have helped maintain demand for trip properties. Three-quarters of brokers surveyed say leisure homebuyers of their area sometimes get hold of financing, comparable to a mortgage or mortgage, when making a purchase order.
One-third of respondents stated provide was decrease than final yr whereas 39 per cent reported comparable stock. Regardless of these indications of provide falling, 55 per cent reported a rise within the common days a property has spent in the marketplace in contrast with final yr.
“Trying forward, leisure property costs are anticipated to rise modestly, pushed by ongoing provide shortages,” stated Soper.
“New cottages and cabins aren’t being constructed quick sufficient to fulfill purchaser demand, which is able to proceed to help long-term worth progress.”
In 2024, the general weighted median worth of a trip residence elevated 2.3 per cent year-over-year to $627,700. The weighted median worth of a single-family waterfront property fell 3.6 per cent in contrast with 2023 to $1,063,400, whereas the value of a condominium remained flat at $431,700.
© 2025 The Canadian Press
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