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Lakeside communities in the Edmonton region saw declining or slowing price growth in 2022 amid higher borrowing costs, but the province’s recreational properties market overall is still expected to see a modest price gain this year unlike other major rec markets in Canada, a new report forecasts.
Driving the province’s rec market is Canmore, which attracts many Edmonton buyers, says Tom Shearer, broker/owner of Noralta Royal LePage in Edmonton.
“When you think about what was happening during the pandemic, everyone was going to Banff and Canmore.”
With hotels and campsites fully booked during the pandemic, more Edmontonians looked to purchase their own vacation home in Canmore amid rock-bottom interest rates on mortgages, which made purchasing a second property more attainable, Shearer adds.
Indeed, the Royal Lepage 2023 Spring Recreational Property Report and Forecast found growing demand in Canmore where the average price of a single-family detached home increased about 16 per cent last year to reach nearly $1.53 million.
While Canada’s overall market is expected to see the average price of a single-family detached recreational property fall 4.5 per cent to $592,005, Alberta’s market is forecast to see the average price grow 0.5 per cent, reaching $1.17 million.
Alberta has consistently been Canada’s most expensive recreational market due to ongoing high demand for Canmore homes, a jurisdiction with limited supply partly due to geography and its regulatory environment that limits new development, Shearer says.
In contrast, British Columbia, Canada’s second most expensive market, is forecast to see average prices fall two per cent in 2023 to about $1.05 million.
Yet not all recreational communities in Alberta have seen demand like Canmore. Some of the most popular lake communities — all near Edmonton — saw only modest growth or price declines last year.
Pigeon Lake’s average price for a single-family home fell about one per cent to $386,300. The average price lakeside also fell about one per cent to $674,500 in 2022.
Lac Ste. Anne’s average price for a home fell more significantly, down 16 per cent to $360,700. For lakeside, the average price declined 11 per cent to $534,700.
Wabamun Lake homes, however, experienced slight growth, rising four per cent to $439,800, though lakeside homes fell nearly eight per cent to $820,200.
A realtor in the region expects the rec property market to see more demand this spring with buyers becoming more confident about mortgage rates.
“We are anticipating the market to return to pre-pandemic levels for listing and buying activity,” says Charlene Anderson, realtor with Re/Max Real Estate.
She notes Wabamun remains a preferred destination for prospective buyers.
“Its proximity to Edmonton gives it a mixed population of recreational users and permanent residents.”
Yet one challenge for buyers is understanding the lake geography, given one property lakeside can be priced differently than another due to water conditions and land features, she adds.
The bigger challenger, “especially the waterfront properties, is supply available,” says realtor Kevin Vandasselaar with Re/Max Real Estate in the region.
Consequently, buyers seeking the best properties in regional lake communities are advised to move fast, given these homes do not come on the market often as they are typically passed from one generation to the next, Shearer says.
“If you find one, seize on the opportunity because someone else is likely hot on your heels.”
