Fri. Apr 12th, 2024

8.3% decrease in the price of waterfront chalets

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The median price of a single-family waterfront property was $424,900 in the area resort properties in Quebec, according to Royal LePage.

The Canadian Press

The price of waterfront chalets, coveted properties, has fallen by nearly 8.3% in 2023, according to a Royal LePage report released Wednesday.

The median price for a single-family waterfront property was $424,900 in the resort areas of Quebec, according to a review by the brokerage firm.

Waterfront properties still have a strong appeal among buyers who aspire to purchase a second home, judges Éric Léger, real estate broker in the Laurentides sector at Royal LePage. I just think that it was consumers' budgets that made them go for something that was more affordable, he explains.

The location of transactions carried out in 2023 could also explain this drop, adds Annick Fleury, broker in the Outaouais region for the same brand.

She notes that more clients favor lakes further from major centers, in order to have more privacy. The price of these properties is generally lower.

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The market is still favorable for rental cottage owners, according to some.

It allows a “waterfront” budget slightly lower, but that does not necessarily mean that the value of houses decreases along the lakes, she explains.

Overall, the median price saw slight gains for single-family properties in major resort markets, despite rising interest rates. The median price increased by 2.6% in 2023 to $396,900.

LoadingNL. postpones the publication of its budget due to a demonstration by fishermen

ELSEWHERE ON INFO: NL. postpones the publication of its budget due to a demonstration by fishermenLoading in progressNL postpones the publication of its budget due to a demonstration by fishermen

ELSE ON NEWS: NL. postpones the publication of its budget due to a demonstration by fishermen

Prices had experienced significant increases during the pandemic and they stabilized in 2023, summarizes Véronique Boucher, broker in the Estrie region at Royal LePage. The recreational market is still doing well despite the economic context which is a little different from other years.

However, activity moderated in the recreational property market, despite prices remaining stable. 6,956 single-family homes were sold in resort markets in 2023. This represents an 11% decrease from last year.

The three brokers note that transaction times are longer than during the euphoria of the pandemic, but this situation of overbidding and haste was unusual.

In its report, Royal LePage predicts that the median price of a single-family property in recreational areas will increase by 2% in 2024.

The firm anticipates that hopes of lower interest rates should provide a boost to resort markets. I have the impression that this will encourage those who were perhaps waiting to know if the mortgage rate was going to increase, comments Ms. Fleury.

Because if interest rates fall further, demand will be even greater, she explains. Then at that time, the rivalry between buyers will again manifest itself as we have already experienced.

Certain owners will also think about their mortgage renewal of 2025. For those who made their purchase during the pandemic for a five-year term, the renewal should be done at a significantly higher rate.

Some owners could choose to sell their second home rather than see their budget eaten away by an increase in their mortgage payments.

This would not be the majority people, maybe not so much in the recreational sector either, but some people will have to plan for the future, underlines Ms. Boucher. So we will probably be lucky to have a better inventory of houses to offer to clients, she predicts.

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