Interest from out-of-province and American buyers drives prices and sales upwards
CHARLOTTETOWN, June 20, 2017 /CNW/ – Recreational property prices in Prince Edward Island (PEI) saw year-over-year1 price increases when compared to the same period last year, rising to an aggregate2 price of $225,500 in May 2017, according to the 2017 Royal LePage Canadian Recreational Housing Report3 released today. Increased demand from out-of-province and American Baby Boomers has caused sales to increase slightly, while the number of listings also saw a significant uptick, as residents looked to capitalize on current market conditions and sell their properties.
Unlike most provinces, where foreign buyers make up under five per cent of the market, foreign ownership in Prince Edward Island is slightly higher, accounting for between five and 10 per cent of the recreational property segment. For the remainder of the year, sales are forecasted to continue their upward ascent as interest from other Canadian regions and the U.S. heats the market.
The typical buyer purchasing recreational property in Prince Edward Island is in the process of retiring or is at a point of financial security where owning additional property is viewed as a good investment, and one that is supported further by a continued low-interest rate environment. According to real estate experts in the province, 15 to 20 per cent of recreational property buyers made purchases as an investment strategy, with the intention of renting them out throughout the year.
“Prince Edward Island’s affordable price points coupled with low interest rates have led to a notable increase in foreign investment in the province in recent years,” said