The market for cottages and other recreational properties in Quebec should experience the largest price decrease in the country in 2023, according to the latest forecasts from broker Royal Lepage.
The decreases expected in all regions of the province this year are in the order of 8%. Thus, on average, a single-family home in the recreational real estate markets in Quebec cost around $373,400 in 2022, and is expected to cost $343,528 in 2023.
Last year, the province had nevertheless experienced the largest price increase in the country (+16.1% between 2021 and 2022).
For 2023, demand for recreational properties also appears to have declined significantly, with 76% of brokers surveyed indicating that demand was lower this year than last, and 35% stating that it was lower than in a typical pre-pandemic year.
“We are in a two-speed market in which we observe very contrasting scenarios. On the one hand, we have a continuous increase in the inventory of properties for sale and motivated sellers ready to adjust their price downwards, and on the other, situations of multiple offers when the property is ideally located, well maintained and displayed at a fair price,” said Éric Léger, chartered real estate broker, Royal LePage Humania in the Laurentians.
Mr. Léger believes that in the coming months, owners of second homes in the region “may have to review their priorities when they are called upon to renegotiate their mortgage agreement at a considerably higher interest rate.”
More thoughtful buyers
For Véronique Boucher, residential real estate broker, Royal LePage Au Sommet in Magog, buyers this year “are more composed, negotiate and take the time to properly analyze their needs and their financial capacity before launching”.
“Multiple bids and overbidding scenarios are no longer the norm, but arise when the property is listed at the right price and offers turnkey,” she pointed out.
Decreases everywhere except Alberta
Ontario is the second province expected to experience the largest price decline, -5%, from 2022.
The only province where prices are expected to increase slightly is in Alberta (+0.5%). Nationally, the expected drop is around 4.5%.
The Royal LePage survey was conducted with 34 brokers in Quebec between March 1 and March 18, 2023.