Recreational property prices in Quebec’s major ski areas continued to rise in 2023, despite economic instability
According to Royal LePage, prices are expected to stabilize in 2024, while higher interest rates and living costs cool demand
- Median single-family detached home price in Quebec’s winter recreational market rose 7.8% year over year in the first 10 months of 2023
- Royal LePage forecasts the price of a single-family detached home near one of the province’s main downhill ski resorts will increase modestly by 1.8% over the next 12 months, as buyers’ purchasing power erodes under the weight of rising borrowing costs
- In 2023, recreational real estate markets across the province responded unevenly to higher interest rates and elevated inflation
- Of all real estate markets analyzed, Mont Sutton saw the greatest price appreciation for single-family detached properties (27.3%) in the first 10 months of 2023 compared to the same period in 2022
- In the condominium segment, the median price in Mont Sainte-Anne was up 83.4% year over year, the highest in the province
- Tightening restrictions on short-term rentals in some of Quebec’s resort regions is reducing demand for investment properties
MONTREAL, November 29, 2023 – According to the 2023 Royal LePage Winter Recreational Property Report,[1] which analyzes the residential real estate markets near Quebec’s major ski areas, the recreational property segment proved resilient overall in response to the economic downturn of 2023, although price appreciation and activity differed greatly from one region to the next.
The median price of a single-family detached property rose 7.8% in the first 10 months of the year, compared to the same period in 2022, to $501,600, reflecting the relative strength of the market, which became more apparent in the first part of the year. Similarly, the median price of a condominium rose 4.9% during the same period to $399,300. Of the ten regions studied, eight saw an appreciation in the median price of single-family properties, three of them by more than 20%, while three of the five regions with a significant condominium market saw median prices increase.
“The rush of urban households into recreational real estate markets, which marked the pandemic years, has subsided. However, this era has contributed to the long-term popularity of these regions, as they have had to adapt their local services and infrastructures to a rapidly growing population,” said Dominic St-Pierre, vice-president and general manager of Royal LePage in Quebec. “Even though the inventory of properties available for sale was up this year, the scarcity of supply compared to demand continued to maintain prices, particularly in the first half of the year. Then, consumer caution in the face of higher borrowing costs slowed activity at the start of the summer season.”
The rise in recreational property prices was, however, accompanied by a contrasting sales picture in 2023, as the Bank of Canada continued to increase its key lending rate until July, altering the purchasing behaviour of aspiring buyers and homeowners. The number of single-family detached recreational home transactions in the province declined 8.5% over the reporting period, and 22.8% in the condominium segment, echoing the wait-and-see approach of many buyers who chose to put their plans on hold, hoping for better days to acquire a home in one of the province’s most desirable winter resort regions.
The impact of legislative changes on short-term rentals
In response to the Quebec government’s Bill-67 provisions approved in March of 2021 and in effect as of March 2023,[2] some resort municipalities, including Saint-Sauveur, Magog and Stoneham-et-Tewkesbury, have tightened their bylaws on short-term rentals to curb misuse of the legislation and limit the areas where the practice is permitted, therefore reducing opportunities for some buyers looking for an investment property.
“Buying a recreational home for investment purposes can be an excellent way to leverage savings,” said St-Pierre, stressing the importance of being well prepared and doing your due diligence, especially regarding short-term rentals. “A real estate broker is an important ally in this type of transaction, since they will inform their buyer about the compliance related to this practice, about obtaining a permit from the Corporation de l’industrie touristique du Québec (CITQ) and about the property’s eligibility under current municipal bylaws.”
Recent legislative changes were also announced last week in the Government of Canada’s Fall Economic Statement,[3] with the aim of encouraging homeowners to put their homes up for sale or rent them out for longer periods, adding a further challenge for owners wishing to offset their increased expenses by renting out their chalets.
Forecast
Although it is widely expected that the Bank of Canada will keep its overnight lending rate stable for most of 2024, Royal LePage expects that the pressure exerted by recent interest rate hikes and increased inflation on households’ budgets will continue to weaken their purchasing power and, consequently, curb property price appreciation, particularly in resort markets where most properties are secondary residences. In the current economic climate, secondary residence owners may make concessions to avoid accumulating unmanageable debt and put their property on the market instead of renewing their mortgage at a much higher rate. However, the scarcity of homes for sale in the province’s winter recreational markets will prevent prices from sliding downward in most sectors.
According to Royal LePage, the price of a single-family detached home in the province’s alpine markets will increase modestly by 1.8 % to $510,629 over the next 12 months. This forecast is based on stable interest rates for most of 2024 or a modest decline.
Data chart – Royal LePage 2023 Winter Recreational Property Report (Quebec): rlp.ca/table_2023winterrecreationalreport_QC
REGIONAL SUMMARIES
Mont-Tremblant
(Mont-Tremblant, Mont-Blanc, La Conception)
In the first 10 months of the year, the median price of a single-family detached home in Mont-Tremblant increased 7.8% compared to the same period in 2022, reaching $539,000, while sales fell 13.2% year over year. The median price of a condominium in the region declined 2.1% over the same period, while sales in this market segment decreased 33.5% year over year.
“During periods of rising interest rates, the luxury real estate market in the Mont-Tremblant area is typically less affected, since a significant proportion of buyers do not finance their homes. This accounts for the fact that prices continued to rise in the region this past year,” said Corina Enoaie, residential and commercial real estate broker at Mont-Tremblant Real Estate, a division of Royal LePage. “Although we’re noticing that buyers are more confident when it comes to negotiating for a better price, sellers still have the advantage as they’re not exposed to strong market competition from fellow sellers.”
The real estate professional reiterated that while the law prohibiting the purchase of residential property by non-Canadians does not apply to many areas of Mont-Tremblant, foreign buyers should always be sure to do their due diligence before making a purchase.
For those looking for real estate near the slopes, the current minimum price threshold is around $1,400,000 for a single-family home and $150,000 plus taxes for a condominium (condotel).
“Year after year, Mont-Tremblant ranks among the top ski resorts in North America,” said Corina Enoaie. “We are fortunate to live in a four-season resort close to two major urban centers, Montreal and Ottawa. Although economic conditions have limited household purchasing power, Mont-Tremblant’s real estate market should still do well and remain slightly up in 2024.”
Royal LePage forecasts that the median price of a single-family detached home in the region will appreciate 4.0% over the next 12 months. This forecast is based on stable interest rates for most of 2024 or a modest decline.
Data chart – Royal LePage 2023 Winter Recreational Property Report (Quebec): rlp.ca/table_2023winterrecreationalreport_QC
Mont Saint-Sauveur
(Saint-Sauveur, Morin-Heights, Piedmont)
In the first 10 months of the year, the real estate markets near Mont Saint-Sauveur showed contrasting trends between property types, as the median price of a single-family home rose 6.7% over the same period in 2022 to reach $600,000, while sales fell 7.2% year over year. Conversely, the median price of a condominium in the region fell 6.5% compared to the first 10 months of 2022 to $357,500, while sales declined 2.3% year over year.
“Prior to the COVID-19 pandemic, the local real estate market was more vulnerable to economic fluctuations. However, improved high-speed internet access and the flexibility of remote working has created steady demand, making the market more resilient. The region is now home to a significant proportion of primary residence owners,” said Éric Léger, residential and commercial real estate broker, Royal LePage Humania E.L.
As for the dynamic between buyers and sellers, Léger believes that sellers still have room to maneuver when it comes to selling prices, as a result of the considerable increases in the market value of their properties over the last few years. However, the rate of appreciation is set to slow in the coming months.
For those looking for a property near the slopes in Saint-Sauveur, the current minimum price threshold is around $800,000 for a single-family home and $600,000 for a condominium.
“The scarcity of supply should prevent property prices in the Saint-Sauveur region from softening in 2024, but sales are still expected to decline as households act with more caution and wait for lower interest rates,” said Léger. “Consumers are advised to plan carefully for major purchases, including the acquisition of a property, and surround themselves with experts such as a real estate broker, financial advisor and mortgage broker, to inform their decisions.”
Royal LePage forecasts that the median price of a single-family detached home in the region will increase 4.0% over the next 12 months. This forecast is based on stable interest rates for most of 2024 or a modest decline.
Data chart – Royal LePage 2023 Winter Recreational Property Report (Quebec): rlp.ca/table_2023winterrecreationalreport_QC
Val Saint-Côme et Mont Garceau
(Saint-Côme, Saint-Donat)
During the first 10 months of the year, the median price of a single-family home near Val Saint-Côme and Mont Garceau remained essentially flat, decreasing 0.9% compared to the same period in 2022, to $431,000. Sales also stabilized, increasing 0.7% year over year.
For those looking for real estate near the slopes, the minimum price threshold is around $500,000 for a single-family home.
“The market was very active up until the summer, when days on market became longer and sellers began to make concessions on prices. This explains why prices and sales have stabilized,” said Éric Fugère, real estate broker, Royal LePage Habitations. “These are direct effects of the rise in interest rates that are starting to be felt.
“Access to winter sports and tranquility continue to be important factors for buyers in Lanaudière. High-speed internet access is essential for buyers, especially those wishing to settle permanently and work remotely,” he said, adding that the territory is increasingly well connected.
Fugère believes that Lanaudière markets could be among the most affected markets by rising interest rates in 2024.
“The Bank of Canada’s aggressive efforts to slow inflation initiated in March of 2022 are now showing results, putting a lid on real estate demand,” he said. “Lanaudière was one of the first markets in our report to show a decline in recreational property prices in the first 10 months of 2023, and all indicators are pointing to the expectation that they will continue to soften, given households’ reduced purchasing power.”
Royal LePage forecasts that the median price of a single-family detached home in the region will decrease 2.0% over the next 12 months. This forecast is based on stable interest rates for most of 2024 or a modest decline.
Data chart – Royal LePage 2023 Winter Recreational Property Report (Quebec): rlp.ca/table_2023winterrecreationalreport_QC
Bromont, Mont Sutton (Sutton, Brome et Lac Brome) et Mont Orford (Orford et Magog)
The median price of a single-family detached home in all Eastern Townships ski area markets increased during the first 10 months of the year.
Of the three regions analyzed, Sutton saw the biggest increase in the median price of single-family homes, rising 27.3% between January 1 and October 31, 2023 compared to the same period in 2022 to $697,500, surpassing the median price in Bromont for the first time since this report has been published. The median price of a single-family home in Bromont reached $650,000, an increase of 10.9% during the first 10 months of the year, a noticeable change after declining 0.9% between 2021 and 2022. Meanwhile, the median single-family home price in the Mont Orford region saw a moderate increase of 5.3% compared to the same period in 2022, rising to $495,000. As for condominiums, the median price increased 11.3% in Bromont year over year to $555,000, and 4.8% in the Mont Orford area, to $305,000. During the same period, condominium sales decreased 4.3% and 30.8%, respectively.
“Like in 2022, the Eastern Townships’ winter recreational markets showed great disparity this year, but proved extremely resilient in the face of economic ups and downs,” said Véronique Boucher, real estate broker at Royal LePage Au Sommet. “Property prices in Sutton surpassed those in Bromont for the first time, with an unprecedented annual increase approaching 30%. At the same time, Bromont once again reported price gains, after experiencing a slight decline in 2022. Meanwhile, the Orford/Magog market recorded a healthy rise in prices, but a considerable decline in sales.”
Boucher notes that this price appreciation has taken place despite an environment of rising property taxes and rising interest rates, demonstrating that real estate demand is still strong in the region.
For those looking for real estate near the slopes, the current minimum price threshold is around $1.5 million for a single-family home in Bromont, while it stands at $800,000 and $900,000 in Mont Orford and Mont Sutton, respectively. A condominium slopeside starts at $550,000 in Orford and $1,000,000 in Bromont.
“Currently, the luxury real estate market is more buoyant than the mid-range,” said Boucher, adding that multi-million-dollar purchases don’t require lending in many cases. “In Sutton, for example, we’re seeing an increase of around 30% in sales above the million-dollar mark for 2023 compared to 2022.
“The rest of the market remains active, but selling times are longer compared to this time last year,” she said. “First-time homebuyers remain on the sidelines, waiting for more favourable conditions to enter the real estate market with a better quality-price ratio.”
In 2024, Boucher expects the effects of this year’s interest rate hikes to be felt more strongly, limiting the growth in property prices around the region’s ski areas.
Royal LePage forecasts that the median price of a single-family detached home will increase 2.0% in Bromont, 8.0% in Sutton and 2.0% in Orford over the next 12 months. This forecast is based on stable interest rates for most of 2024 or a modest decline.
Data chart – Royal LePage 2023 Winter Recreational Property Report (Quebec): rlp.ca/table_2023winterrecreationalreport_QC
Mont Sainte-Anne
(Beaupré, Sainte-Anne-de-Beaupré, Saint-Ferréol-les-Neiges, Saint-Joachim)
In the Mont Sainte-Anne region, the median price of a single-family home rose 1.3% year over year during the first 10 months of 2023 to $290,000, while sales fell 24.6%. For condominiums, the median price jumped 83.4% year over year to $266,000, while sales fell 10.8% over the same period.
For those looking for real estate near the slopes, the entry-level price is around $600,000 for a single-family home and $300,000 for a condominium.
According to Marc Bonenfant, chartered real estate broker, Royal LePage Inter-Québec, the sharp rise in the median price of a condominium near the slopes of Mont Sainte-Anne reflects the wide disparity in property types in the region and the scarcity of properties for sale.
“The condominium segment in the Mont Sainte-Anne region is highly varied, with apartments of all sizes, as well as townhouses in very luxurious complexes, so prices can fluctuate greatly from one year to the next,” he explained. “For example, in 2022, the most expensive property sold for $725,000, whereas we’re talking about $1,215,000 in 2023. The appeal of ski-in, ski-out continues to be the main driver of real estate demand in the region.”
According to the broker, property prices are likely to experience a moderate decline in 2024 in the region, in response to the environment of higher borrowing costs that will continue to weigh on buyers’ wallets. He admits, however, that recent updates in the short-term rental framework could cool sales in areas that no longer allow it, but on the other hand, push up prices in areas where it is still permitted.
Royal LePage forecasts that the median price of a single-family home in Mont Sainte-Anne will dip 4.0% over the next 12 months. This forecast is based on stable interest rates for most of 2024 or a modest decline.
Data chart – Royal LePage 2023 Winter Recreational Property Report (Quebec): rlp.ca/table_2023winterrecreationalreport_QC
Stoneham/Lac-Beauport
(Stoneham-et-Tewkesbury, Lac Delage, St-Gabriel-de-Valcartier, Lac-Beauport)
In the first 10 months of the year, the median price of a single-family detached home in Stoneham/Lac-Beauport decreased 3.9%, compared to the first 10 months of 2022, to $457,000, while sales increased 10.0% over the same period.
“The real estate markets near Stoneham/Lac-Beauport remain very popular with young households looking for a recreational property to enjoy the slopes on evenings and weekends,” said Marc Bonenfant, chartered real estate broker, Royal LePage Inter-Québec.
For those looking for a property near the slopes, the minimum price threshold today is around $600,000 for a single-family home and $300,000 for a condominium.
Since 2019, home prices in the region have grown nearly 50%, said Bonenfant, who is concerned about the financial capacity of households as mortgage renewals come due. Households that purchased a property before 2022 at an interest rate below 2% will now be renewing over 7%.
“Rising borrowing costs are affecting more and more households who are about to renew their mortgages, and some are now realizing the impact on their monthly payments,” said Bonenfant. “When investing in the purchase of a higher-end property, it’s important to anticipate that the cost of living will also increase, usually in addition to property taxes and other maintenance costs that come with the purchase of a property.”
Royal LePage forecasts that the median price of a single-family home will decrease 3.0% in the Stoneham/Lac-Beauport market over the next 12 months. This forecast is based on stable interest rates for most of 2024 or a modest decline.
Data chart – Royal LePage 2023 Winter Recreational Property Report (Quebec): rlp.ca/table_2023winterrecreationalreport_QC
Massif de Charlevoix
(Baie-Saint-Paul, Les Éboulements, Isle-aux-Coudres, Petite-Rivière-Saint-François, Saint-Hilarion, Saint-Urbain)
In the first 10 months of the year, the median price of a single-family detached home near Le Massif de Charlevoix climbed 21.8%, compared to the same period in 2022, to $398,800. Meanwhile, sales fell 28.3% year over year.
For those looking for real estate near the slopes, the minimum price threshold today is around $450,000 for a single-family home.
“The arrival of Club Med de Charlevoix has certainly turned the area into a major attraction, and is a major driver of local economic activity,” said Denis Lavoie, residential and commercial real estate broker at Royal LePage Blanc & Noir. “The new facilities have boosted tourism in the region, in addition to stimulating other real estate investments and the creation of new infrastructures, such as the construction of a brand new hospital in Baie-Saint-Paul.”
According to the broker, the recent influx of real estate developers into the region should push up inventory levels in the coming year, a trend that would slow price appreciation.
Royal LePage forecasts that the median price of a single-family home in the region will increase 3.0% over the next 12 months. This forecast is based on stable interest rates for most of 2024 or a modest decline.
Data chart – Royal LePage 2023 Winter Recreational Property Report (Quebec): rlp.ca/table_2023winterrecreationalreport_QC
Mont Grand Fonds
(La Malbaie, Clermont, Saint-Siméon, Saint-Aimé-des-Lacs, Notre-Dame-des-Monts, Sainte-Irénée, Baie Sainte-Catherine)
In the first 10 months of the year, the median price of a single-family detached home near Charlevoix’s Mont Grand Fonds climbed 21.6%, compared to the same period in 2022, to $231,000. Meanwhile sales fell 21.1% year over year.
“The area attracts real estate investors, mainly from France, who are attracted to the riverside landscape, mountains and our four seasons of recreational options,” said Denis Lavoie, residential and commercial real estate broker, Royal LePage Blanc & Noir. “Many consider Mont Grand Fonds to be the best-kept secret in Eastern Charlevoix, a family ski resort that drives sales in the real estate market. In addition to the large pool of rental cottages, real estate activity is largely stimulated by the many winter sports available, from downhill and cross-country skiing to snowmobiling.”
Royal LePage forecasts that the median price of a single-family home in the region will increase 3.0% over the next 12 months. This forecast is based on stable interest rates for most of 2024 or a modest decline.
Data chart – Royal LePage 2023 Winter Recreational Property Report (Quebec): rlp.ca/table_2023winterrecreationalreport_QC
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About the Royal LePage Winter Recreational Property Report
The 2023 Royal LePage Winter Recreational Property Report compiles insights, data and forecasts from 10 popular ski regions in the province of Quebec. Median price and sales data were compiled through Centris and analyzed by Royal LePage for the period from January 1 to October 31 in 2023 and for the same period in 2022. Data availability is based on a transactional threshold and whether regional data is available using the report’s standard housing types. 2022 price data may vary from the 2022 Winter Recreational Property Report as a result of updated transaction records from local real estate boards.
About Royal LePage
Serving Canadians since 1913, Royal LePage is the country’s leading provider of services to real estate brokerages, with a network of approximately 20,000 real estate professionals in over 670 locations nationwide. Royal LePage is the only Canadian real estate company to have its own charitable foundation, the Royal LePage Shelter Foundation, which has been dedicated to supporting women’s shelters and domestic violence prevention programs for 25 years. Royal LePage is a Bridgemarq Real Estate Services Inc. company, a TSX-listed corporation trading under the symbol TSX:BRE. For more information, please visit www.royallepage.ca.
Media contact:
Yasmine Gholam
North Strategic on behalf of Royal LePage
yasmine.gholam@northstrategic.com
438-275-5122
[1] The 2023 Royal LePage Winter Recreational Property Report compiles insights, data and forecasts from 10 popular ski regions in the province of Quebec. Median price and sales data were compiled through Centris and analyzed by Royal LePage for the period from January 1 to October 31 in 2023 and for the same period in 2022. Data availability is based on a transactional threshold and whether regional data is available using the report’s standard housing types. 2022 price data may vary from the 2022 Winter Recreational Property Report as a result of updated transaction records from local real estate boards.
[2] Gouvernement du Québec, 26 mars 2021: Adoption du projet de loi 67 – Hébergement collaboratif dans les résidences principales : mieux encadré et plus accessible
[3] 2023 Fall Economic Statement, Government of Canada, November 21, 2023
