Price of Quebec waterfront cottages fell in 2023

The price of waterfront cottages fell by nearly 8.3 per cent in 2023 in the wake of high interest rates, according to a Royal LePage report released Wednesday.

The median price of a single-family home located on the waterfront stood at $424,900 in Quebec vacation spots, according to a review by the real-estate brokerage firm.

“Properties on the waterfront still have a strong appeal among buyers who aspire to purchase a second home,” says Éric Léger, real estate broker in the Laurentides sector at Royal LePage.

“I simply think that it was consumers’ budgets that made them go for something that was more affordable.”

The location of transactions carried out in 2023 could also explain this drop, according to Outaouais real-estate broker Annick Fleury. She points out that more clients favour lakes further from major centres, to have more privacy. The price of these properties is generally lower.

“It allows for a slightly lower ‘waterfront’ budget, but it doesn’t necessarily mean that the value of homes decreases along the lakes,” she adds.

Overall, the median price saw slight gains for single-family properties in major resort markets, despite rising interest rates. The median price increased by 2.6 per cent in 2023 to reach $396,900.

Prices drastically increased during the pandemic, and they stabilized in 2023, explains Véronique Boucher, a broker in the Eastern Townships. “The recreational market is still doing well despite the economic context which is a little different from other years.”

The three brokers note that transaction times are longer than during the pandemic rush, but that situation of overbidding was unusual.

What does 2024 look like?

Royal LePage predicts that the median price of a single-family property in recreational areas will increase by 2 per cent in 2024.

The firm anticipates that the hope of lower interest rates should provide a boost to resort markets.

“I have the impression that this will encourage those who were perhaps waiting to know if the mortgage rate was going to increase,” comments Fleury.

“If interest rates fall further, demand will be even greater,” she explains.

Some owners will also think about their mortgage renewal in 2025. For those who made their purchase during the pandemic for a five-year term, the renewal should be done at a significantly higher rate.

Some homeowners may choose to sell their second home rather than see their budget eat into an increase in their mortgage payments.

It would not be “the majority of people, perhaps not so much in the recreational sector either, but some people will have to plan for the future,” underlines Boucher. “So, we’ll probably have a better inventory of houses to offer to clients,” she predicts.

-This report by La Presse Canadienne was translated by CityNews.