Property prices in Quebec’s cottage country are expected to increase by as much as 15 per cent in 2021, according to a new report by Royal LePage.
Single-family homes, waterfront properties, condominiums — a sellers’ market is expected to continue for all these types of properties in the “recreational regions” of the province, from Orford and Bromont in the Eastern Townships all the way to Saguenay and Gaspé.
“Demand remains excessively strong in Quebec’s recreational markets,” says Éric Léger, a real estate broker for Royal LePage Humania in the Laurentians. “We are at the height of the wave of demand right now and there is a desperate need for more inventory.”
“On average, selling times have gone from around 60 days in 2019 to around 10 days in 2020 and it’s common to receive more than five offers on a property today.”
Overall, 81 per cent of Royal LePage’s recreational property representatives in Quebec report a significant decrease in inventory over the past year, due in part to older sellers being absent from the market since the onset of the pandemic.
The effect of that absence on supply is only deepened by an upswing of young buyers looking for opportunities to leave the city or anticipating the need for larger property in cottage country to improve their quality of life.
A jump in prices for such properties is expected across Canada following Royal LePage’s survey of 190 brokers and sales representatives in recreational property regions, with 72 per cent of respondents saying their market has “significantly less” inventory than what’s typical for their areas.
Getaway property markets in Ontario and Atlantic Canada are expected to see the highest price gains in 2021, pegged at 17 per cent , while in B.C. they’re expected to rise by 13 per cent.
Royal LePage says supply shortages are forcing buyers into multiple-offer situations, with selling prices often above the original asking price.
In Ontario, 87 per cent of recreational real estate professionals said more than half of properties available on the market are selling above the asking price. In Quebec and B.C., 65 and 52 per cent, respectively, reported the same.
“Eventually, the progress in the vaccination rollout should lead to increased inventory,” Léger said. “And a return of regular activities, such as travel, will lessen demand.”
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