After a soft 2024, Canada's recreational property regions bounced back in the first nine months of 2025
The outlook for Canada's recreational property markets has brightened considerably.
According to Royal LePage's latest Winter Recreational Property Report, median single-family home prices across 18 popular ski regions climbed 3.8% year-over-year through September 2025 to $982,000.
"Following a year of sluggish activity and stagnant prices in 2024, the real estate markets in Canada's most popular ski destinations rebounded in 2025," said Phil Soper, president and chief executive officer at Royal LePage.
"Modest interest rate relief and a growing 'Buy Canadian' mindset helped reignite demand for slopeside chalets and mountain retreats."
Sixteen of 18 recreational markets tracked in the survey posted sales gains, while 78% recorded increases in median single-family home prices. Notably, 89% of markets saw year-over-year sales activity climbs.
Interest rate cuts fueling buyer confidence
Lower borrowing costs have played a meaningful role in the rebound. The Bank of Canada cut rates seven times between June 2024 and March 2025, providing relief to buyers weighing purchase decisions.
Among Royal LePage's recreational property experts surveyed, 47% said lower rates encouraged increased buyer demand in their markets. That support translated into action, with 80% of experts reporting similar or increased demand compared to 2024.
Yet recreational markets have proven more resilient than their urban counterparts. Canada's aggregate home price posted virtually no change in the third quarter of 2025, rising just 0.1% year over year to $816,500.
By contrast, recreational properties demonstrated staying power even as economic uncertainty persisted. "Buyers of second homes tend to have more financial flexibility and are less sensitive to short-term interest rate changes," Soper noted.
'Buy Canadian' movement shifts vacation patterns
Geopolitical tensions between Canada and the United States have accelerated a shift in consumer behaviour.
Statistics Canada has reported year-over-year declines in Canadian-resident return trips by automobile from the US every month in 2025. This trend is rippling through recreational real estate.
Forty-seven percent of Royal LePage's recreational property experts reported more domestic inquiries for recreational properties, signalling a marked preference for getaways closer to home.
The shift has extended to property owners south of the border. According to Royal LePage's recent survey, more than half (54%) of Canadians holding residential property in the US plan to sell within the next year, with a majority (62%) citing the current political administration as the main reason.
Almost one-third (32%) of those selling or planning to sell said they intend to reinvest the proceeds into Canadian real estate.
October home sales in Canada edged up 0.9% from September but remain down from last year. Anne-Elise Cugliari Allegritti of Royal LePage notes trade tensions weigh on buyers, though limited rate cuts may spark renewed activity.https://t.co/wz0e8ZD4qo
— Canadian Mortgage Professional Magazine (@CMPmagazine) November 18, 2025
Stronger demand creates headwinds for supply
Forty-seven percent of experts reported an increase in inventory, yet supply constraints remain a structural feature of recreational markets.
Unlike urban areas, recreational regions see limited new construction, keeping demand in check. This dynamic has sustained upward pressure on prices across multiple regions.
Royal LePage is forecasting a 4% increase in median single-family home prices across recreational ski regions over the next 12 months, supported by lower borrowing costs and sustained domestic demand.
Recreational property markets have demonstrated that second-home buyers operate with different financial priorities than primary residence buyers.
With the 'Buy Canadian' movement showing no signs of reversing and interest rates expected to remain accommodative, brokers should anticipate continued momentum in this segment, particularly among clients seeking lifestyle assets and portfolio diversification closer to home.
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