This just published today on Castanet.net

Recreational Property

The full impact of an aging baby boom generation is hitting recreational property markets across the country, according to a report released today by RE/MAX.

The RE/MAX Recreational Property Report, which highlights activity in 40 major Canadian centres, found that older boomers are fueling unprecedented demand for major recreational properties in 67 per cent (27) of markets surveyed during the first quarter of 2006. Never before have those aged 50 plus been such a strong segment of the recreational property market.

Boomer demand has also sparked an upswing in starting prices for three-bedroom, winterized recreation properties on waterfront lots. Virtually every market surveyed reported an increase. Once again, the most expensive markets are found in the West, with Whistler ($1.1 million), Salt Spring Island ($1 million), Shuswap lake ($1 million), Kelowna (Lake Okanagan - $1 million), Penticton ($800,000 - $1 million), Sylvan lake ($800,000 - $850,000) and Vernon ($800,000) represent the top seven. Ontario's Bala/Port Carling area in Muskoka ($500,000 - $550,000) is the most expensive recreational property market in Ontario-Atlantic Canada. Some of the most affordable oceanfront properties can be found on Canada's east coast, where starting prices are under $200,000.

Highlights:

• International purchasers from Europe, Asia, Australia, and New Zealand are fueling demand for big-ticket recreational properties in Salt Spring Island, Whistler, Sylvan Lake, Bala/Port Carling and Newfoundland.
  
• Americans, particularly those in the northern U.S. states, continue to play a major role in the sale of recreational properties across the country. The higher Canadian dollar has done little to dissuade buyers as prices for recreational properties in the U.S. reach peak levels.
  
• Condominium units on the water's edge and the slopes continue to gain in popularity. The promise of a turnkey, low maintenance property, with full-time security has really truck a chord with today's purchasers.
  
• Affordability is an issue in many recreational property markets. Some purchasers are looking at more reasonably priced back log properties (some with deeded access to the water), second and third row homes, and raw acreage as an alternative to waterfront. Purchasers willing to make real concessions are considering remote properties on smaller lakes and rivers without hydro.