Majority of Canadians prefer long weekends at the cottage or cabin over big city getaways

Low Canadian Dollar and Foreign Buyers Creating Demand in Well-Established Canadian Recreational Property Markets

TORONTO and KELOWNA, BC, June 24, 2015 /CNW/ - According to the 2015 RE/MAX Recreational Property Report, almost 68 per cent of Canadians would rather spend a long weekend at the cottage or cabin over a big city getaway. The survey, conducted by Leger, found that Canadians, of all ages and from all regions, were enthusiastic about spending time at the cottage or cabin.

"In our recent survey of Canadians, we looked at what they would consider sacrificing to afford their dream cottage or cabin. Interestingly, giving up destination vacations was listed as number one on our list. Another notable finding is that 21 per cent of Canadian homeowners would downsize their main residence in order to purchase a cottage, cabin or ski chalet," said Elton Ash, Regional Executive Vice President at RE/MAX of Western Canada. "The cottage and cabin lifestyle is very much in-demand and Canadians are looking for alternative ways to finance their dream property."

In a separate RE/MAX survey of brokers and agents, almost half of the regions reported an increase in buyers looking to rent out their recreational properties part- or full-time and this trend was most common in Ontario and British Columbia. However, very few regions listed investors as primary market drivers. Typically, recreational property buyers in Canada are families with children, and retirees.

The low Canadian dollar is having a positive effect on local recreational property markets as Canadians are choosing to stay in Canada where their dollar will go further. The low Canadian dollar is also attracting foreign buyers to well-established recreational property markets across the country including Whistler, Tofino, Muskoka, Shediac and PEI. Regions that reported seeing an impact from the low Canadian dollar but no increase in foreign buyers included Shuswap, Lake Winnipeg, Penticton, and Thunder Bay.

"We are seeing Canadians who took advantage of the downturn in the US property market in 2008 selling their US recreational properties, which have increased in value over recent years, and taking advantage of the low Canadian dollar to purchase their dream cottage or cabin in Canada," said Gurinder Sandhu, Executive Vice President, RE/MAX INTEGRA Ontario-Atlantic Canada Region. "This is a trend that we expect to continue."

In large markets where there are large enough sample sizes within housing types for year-over-year comparisons, all regions witnessed year-over-year price appreciation and an increase in sales, with the exception of PEI's coastal properties where prices remained flat but sales rose. Markets with both increased year-over-year median prices and sales include Muskoka, Whistler, the Kawarthas, Haliburton, and Wasaga. Peterborough and the Kawarthas witnessed a 27.9 per cent increase in median price, attributed to a surge of sales in the upper-end of the market, as buyers from the GTA look to properties on Stony Lake and Clear Lake as alternatives to more developed Muskoka lakes.

The low price of oil has had an effect on recreational property markets in regions where buyers are typically employed by the oil industry in both Western Canada and Newfoundland. However, in Newfoundland, waterfront properties located within a two hour drive to St. John's are seeing a respectable start to 2015 with relatively flat sales.  

The recreational property market buying season has had a strong start and is expected to remain active throughout the summer as continued low interest rates and consumer demand fuel activity.  

For the full 2015 RE/MAX Recreational Property Report, which includes median prices for key recreational property markets in Canada, click here.

2015 & 2014 Median Prices (Large Markets)

Region

Housing Type

2015 Median

Price

2014 Median

Price

Year-Over-Year

(%)

Whistler

Chalet

$1,315,000

$1,250,000

+5.2%

Collingwood

Non-Waterfront

$327,910

$300,209

+9.2%

Wasaga

Non-Waterfront

$295,658

$279,805

+5.6%

Haliburton

Non-Waterfront

$267,400

$251,000

+6.5%

Muskoka

Waterfront

$429,000

$405,000

+5.9%

Peterborough &

The Kawarthas

Waterfront

$515,700

$403,000

+27.9%*

PEI (Coast)

Waterfront

$110,388

$110,596

0%

*Increase in Peterborough & the Kawarthas year-over-year median price is attributed to a surge of sales in the upper-end of the market. 

Key Findings from 2015 RE/MAX Recreational Property Report Omnibus Survey

Canadians would rather spend a long weekend at the cottage or cabin than go on a big city getaway

  • Canada = 67.8%
  • Atlantic = 70.9%
  • Quebec = 66.1%
  • Ontario = 66.3%
  • Manitoba/Saskatchewan = 65.6%
  • Alberta = 74.1%
  • BC = 69.8%

Some Canadians would consider downsizing their home in order to buy a recreational property such as a cottage or cabin

  • Canada = 21.0%
  • Atlantic = 31.3%
  • Quebec = 17.5%
  • Ontario = 24.0%
  • Manitoba/Saskatchewan = 16.6%
  • Alberta = 15.6%
  • BC = 20.8%

In order to afford a dream cottage or cabin, Canadians would likely buy with family

  • Canada = 40.5%
  • Atlantic = 44.8%
  • Quebec = 34.1%
  • Ontario = 41.7%
  • Manitoba/Saskatchewan = 46.7%
  • Alberta = 29.3%
  • BC = 51.9%

In order to afford a dream cottage or cabin, Canadians would likely give up going abroad for their summer annual vacation

  • Canada = 41.1%
  • Atlantic = 50.4%
  • Quebec = 39.5%
  • Ontario = 40.0%
  • Manitoba/Saskatchewan = 44.4%
  • Alberta = 37.5%
  • BC = 43.1%

About the RE/MAX Network:

RE/MAX was founded in 1973 by Dave and Gail Liniger, with an innovative, entrepreneurial culture affording its agents and franchisees the flexibility to operate their businesses with great independence.

Over 100,000 agents provide RE/MAX a global reach of nearly 100 countries.

RE/MAX, LLC, one of the world's leading franchisors of real estate brokerage services, is a wholly-owned subsidiary of RMCO, LLC, which is controlled and managed by RE/MAX Holdings, Inc. (NYSE: RMAX).

With a passion for the communities in which its agents live and work, RE/MAX is proud to have raised more than $150 million for Children's Miracle Network Hospitals® and other charities.

For more information about RE/MAX, to search home listings or find an agent in your community, please visit www.remax.ca.

About RE/MAX INTEGRA and RE/MAX INTEGRA, Ontario-Atlantic Canada      

RE/MAX INTEGRA, founded in 1980, is a privately held company by Canadian entrepreneurs. With regional headquarters in Toronto, Boston, Minneapolis, Zug, and Vienna, RE/MAX INTEGRA represents nearly a third of all RE/MAX Sales Associates worldwide. RE/MAX INTEGRA was founded on the premise of providing outstanding service and support both at the regional level and to the end consumer.

The Ontario-Atlantic Canada region, is driving towards 10,000 quality Associates; The US regions — New England and the Mid West (including the following states: Minnesota, Wisconsin and Indiana) – account for more than 6,300 Associates with over 2,600 and 3,600 Associates respectively; and the European region leads with more than 14,000 Associates.

For more information about RE/MAX INTEGRA, visit www.remaxintegra.com

2015 RE/MAX Recreational Property Broker and Agent Survey 

The 2015 RE/MAX Recreational Property Broker and Agent Survey measures year-over-year median prices, listings and sales for waterfront, non-waterfront, and water access housing types in key recreational property regions. In addition to providing data from local boards and brokerages, brokers and agents are surveyed on trends, local development and features.  

About Leger

Leger is the largest Canadian-owned full-service market research firm. A survey of 1538 Canadians was completed online between June 8 and June 11, 2015 using Leger's online panel, LegerWeb. A probability sample of the same size would yield a margin of error of +/- 2.5%, 19 times out of 20.

Forward-Looking Statements 
This press release includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "anticipate," "believe," "intend," "expect," "estimate," "plan," "outlook," "project" and other similar words and expressions that predict or indicate future events or trends that are not statements of historical matters. These forward-looking statements include statements regarding the future performance of the housing market, the Company's financial and operational outlook, the Company's belief that business fundamentals remain strong, as well as other statements regarding the Company's strategic and operational plans. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward looking statements are based on information available at the time those statements are made and/or management's good faith belief as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward looking statements. Such risks and uncertainties include, without limitation, (1) changes in business and economic activity in general, (2) changes in the real estate market, including changes due to interest rates and availability of financing, (3) the Company's ability to attract and retain quality franchisees, (4) the Company's franchisees' ability to recruit and retain agents, (5) changes in laws and regulations that may affect the Company's business or the real estate market, (6) failure to maintain, protect and enhance the RE/MAX brand (7) fluctuations in foreign currency exchange rates, as well as those risks and uncertainties described in the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operation" in the most recent Form 10-K filed with the Securities and Exchange Commission ("SEC") and similar disclosures in subsequent reports filed with the SEC, which are available on the investor relations page of the Company's website at www.remax.com and on the SEC website at www.sec.gov.  Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made. Except as required by law, the Company does not intend, and undertakes no duty, to update this information to reflect future events or circumstances. 

SOURCE RE/MAX Ontario-Atlantic Canada

For further information: To coordinate interviews, please contact: Western Canada, Wade Paterson, O. 1-800-563-3622; Grace Hon, O. 604-688-2549; C. 604-839-6770; E: grace.hon@fleishman.ca; Ontario and Atlantic Canada, Shelby Schneider, O. 905-542-2400, Rachael Factor, O. 416-645-3660; C. 416-460-5744; E: rachael.factor@fleishman.ca


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