Canadian property market tide shows sign of turning

A vacation home in one of the world's most coveted recreational playgrounds is fun to have during good times, but one of the first things to go - along with the yacht and the fancy weekend wheels - when the economy goes pear-shaped. Even the mighty Canadian Rockies, for all their rugged beauty and appeal, did not escape the global downturn.

Alberta and British Columbia, the states straddled by the famed alpine ranges, are not alone. Across Canada, prices have contracted in many of the popular winter and summer resort areas, according to a new report.

But data from the RE/MAX Recreational Property Report suggests the tide is turning again. Affordability factors have spurred greater demand for vacation homes this year, with sales ahead of last year in 70 per cent of 33 markets surveyed nationally. Sales were on par with 2011 in only 6 per cent of the surveyed markets.

"Canadian recreational property markets have been reinvigorated, with softer values, increased selection and a rebound in consumer confidence," the report says.

Noting that greater affordability was due in large part to rising inventory and low interest rates, downward trending in starter prices was reported in 49 per cent of markets, while 33 per cent experienced no change. Nineteen per cent posted a rise in starter values year over year.

In Canmore, the region in the RE/MAX report covering the Rockies, recreational areas are "still feeling the pinch". On the upside, inventory is "ample", and quality product is "beginning to move". It notes that starting prices are down marginally year on year, making today's climate "one of the most affordable in recent years". Buyers are beginning to take note, cherry-picking well-priced condominiums near the ski hills, according to the report.