Short breaks cost more
Photo: Glacier Media
Expect recreational property prices in Okanagan to rise in 2021 along with the regular housing market.
Royal LePage published its Spring Recreational Property Report on Tuesday. The real estate company is forecasting a 13% price increase in BC for BC this year.
The forecasts aren’t broken down by region, but the average BC recreational property is projected to check in at $ 781,918 in 2021.
The average single-family home price increased 11.5% in Central Okanagan from $ 650,000 to $ 725,000 from 2019 to 2020, but the average waterfront home cost only increased 0.3% from $ 1.95 million to 1.955 Million USD.
The number of recreational condominiums in Central Okanagan rose a modest 2.4% from 2019 to 2020, averaging $ 344,000.
“Our biggest challenge right now is extremely low inventory levels and increased buyer demand,” said Francis Braam, broker for Royal LePage Kelowna, in a press release. “I expect we will see double-digit price increases in central Okanagan in the spring. Canadians will be spending another summer at home, further increasing their interest in the recreational property market. “
It’s similar in North Okanagan, but the prices there are cheaper than in Central Okanagan. Single-family homes rose 10.3% to $ 530,000, waterfront properties rose 12.2% to $ 1.4 million, and condos rose 5.6% to $ 228,000.
According to the report, 68% of BC recreational property experts said there was an increase in the number of buyers from other provinces. The survey also found that buyers made between four and seven offers before finalizing the deal.
The national average price for recreational properties is expected to rise 15% this year due to the lack of inventory that is putting pressure on prices across the country.
