As winter activities ramp up across Canada, so will the home prices nearest to ski hills, according to a report by Royal LePage.
The real estate brokerage notes in its 2023 Winter Recreational Property Report that the median price of a single-family detached home near Canada’s ski regions is expected to increase in 2024.
Over the next year, the median is likely to rise by 2.9 per cent to $1,099,661, the report reads.
This comes as a contrast to a possible cooling in the overall housing market, where prices could drop as much as 10 per cent by early 2024, a TD Bank report forecast.
Pauline Aunger, broker of record at Royal LePage Advantage Real Estate, said in a news release accompanying the firm’s latest report that the increase to homes around ski hills is expected to be “modest.”
“Recreational house prices in Canada’s popular ski regions are expected to remain stable in the year ahead,” she said. “While demand has weakened and supply has increased compared to the pandemic-fueled boom, market activity is trending back to normal historical levels.”
At the beginning of this year, home prices in ski regions did post a year-over-year decline, Royal LePage noted, largely due to high interest rates and the increased cost of living.
“Uneasiness” about the economy also played into the decline in price, the report reads.
Within the first 10 months of 2023, the median sale price for a single-family detached winter recreational home remained flat, decreasing just 0.7 per cent year-over-year to $1,068,200.
But since that time, the report says, “market activity is trending back to historical norms, following an unprecedented boost in activity during the pandemic.”
WHERE ARE PRICES INCREASING?
A large portion of Canada’s ski hills are located in Quebec, where many communities are expected to see high year-over-year increases in price.
The Royal LePage report notes homes around Mont Sutton, including Brome and Lac-Brome, are expected to rise in price by 8 per cent in 2024.
Homes in this area could rise from a median price of $697,500 for a single-family detached home to $753,300, according to the just-released predictions.
Near Mont-Tremblant, including in the areas of Mont-Blanc and La Conception, prices in 2024 could rise by 4 per cent, from a median 2023 price of $539,000 to $560,560, the report predicts.
A 4 per cent increase is expected for homes near Mont Saint-Sauveur, Morin-Heights and Piedmont.
In Ontario, homes are likely to increase by 4.5 per cent near Georgian Bay, including in Collingwood, Meaford and Thornbury, the report predicts.
The median sale price in the region in 2023 was around $800,000, and could increase to $836,000 in 2024.
While Royal LePage predicts most buyers will pay more in 2024, that is not the case in some areas.
Homes in Canmore, Alta., saw a leap this year of 9.6 per cent compared to 2022, with a median price of $1.7 million for the region. The report says home prices are expected to decrease by a median of 0.5 per cent in 2024.
But in British Columbia, where sellers of homes near ski hills this year saw, at times, double-digit price losses, single-family detached homes are expected to rebound slightly in 2024, the report notes.
In the Sun Peaks region, home prices dropped 21.3 per cent between 2022 and 2023. A gain of 3 per cent is expected next year, bringing the median from $1.21 million to $1.24 million.
Bucking the 2023 provincial trend, homes near Mount Washington and in the Comox Valley jumped 26.5 per cent year-over-year. Prices are likely to keep climbing by 0.5 per cent, according to the report.
Royal LePage predicts that one of the province’s best-known ski towns, Whistler, will see home price increases close to 5 per cent on average in 2024, rising from a median price of $3.6 million to $3.8 million.
“Although recreational real estate markets vary greatly from one region to the next, activity on the whole in Canada’s winter recreational communities has noticeably slowed,” Aunger said in the press release. “Annual sales are down in most regions and inventory has climbed modestly as the market continues to regain balance. This has not, however, translated to steep price declines in a majority of markets.”