69% of recreational property specialists report steady demand in their regions
According to Royal LePage, 38 per cent of regional specialists also observed a noticeable uptick in inquiries following the April announcement of capital gains tax changes which took effect on June 25.
Unlike urban buyers, recreational homebuyers tend to have equity tied up in their primary residences, which makes interest rates particularly important in their decision making. As Soper explained, “Though some buyers pay in cash or use equity from their primary home, many still watch interest rates closely as an indicator of the economy’s health and whether it’s the right time to buy their dream vacation home.” As borrowing costs drop, buyer confidence typically rises, encouraging those sitting on equity in their primary homes to act.
However, Soper also notes that additional factors like wildfires in Alberta’s Jasper National Park are contributing to today’s market dynamics: “Recent capital gains tax changes and frequent climate events… are factors buyers also consider in today’s market.”