The market for cottages and other leisure properties in Quebec is set to experience the largest price drop in the country in 2023, according to the latest forecasts from real estate agent Royal Lepage.
The decreases expected for this year in all regions of the province are of the order of 8%. For example, a single-family home in Quebec’s recreational real estate markets averaged around $373,400 in 2022 and is expected to cost $343,528 in 2023.
Last year, however, the province experienced the largest price increase in the country (+16.1% between 2021 and 2022).
For 2023, demand for leisure property also appears to have declined significantly, with 76% of agents surveyed saying demand was lower this year than last year, and 35% saying it was lower than a typical year the pandemic.
“We are in a two-speed market where we see very contrasting scenarios. On the one hand we have a continuous increase in the inventory of properties for sale and motivated sellers willing to adjust their price downwards and on the other hand multiple offer situations when the property is ideally located, well maintained and on one Fair is price,” said Éric Léger, licensed real estate agent at Royal LePage Humania in the Laurentians.
Mr Léger believes that second home owners in the region “may need to reassess their priorities in the coming months if they are asked to renegotiate their mortgage contract at a significantly higher interest rate”.
More thoughtful shoppers
For Véronique Boucher, residential real estate agent at Royal LePage Au Sommet in Magog, buyers this year are “calmer, negotiating and taking the time to properly analyze their needs and financial capacity before starting”.
“Multiple bids and outbid scenarios are no longer the rule, but occur when the property is listed at the right price and offered turnkey,” she stressed.
Declining everywhere except Alberta
Ontario is the second province where the biggest price decrease is expected from 2022 at -5%.
The only province where a slight price increase is expected is Alberta (+0.5%). Nationwide, the expected decline is around 4.5%.
Royal LePage’s survey was conducted between March 1st and March 18th, 2023 with 34 brokers in Quebec.