by Jim Adair

For every three Canadians who say they want to buy a recreational property this year, there's only one property owner willing to sell. There are also more U.S. buyers taking advantage of the weak Canadian dollar and snapping up vacation properties in Canada. As a result, it looks like it's going to be a long, expensive summer for would-be buyers.

Royal LePage Real Estate Services, one of Canada's largest real estate firms, recently commissioned pollster Ipsos-Reid to survey cottage owner and buyer attitudes and trends.

"Despite the projected economic slowdown, the supply crunch is not expected to ease due to the low turnover rate of recreational property, and an overall lack of new development activity," says Sherry Chris, vice-president, network services for Royal LePage. "Since 1996, cottage and chalet prices have continued to appreciate and we anticipate strong demand will fuel further increases in 2001."

More than 70 per cent of potential buyers surveyed say they plan on spending less than $100,000 (Cdn) for a property, but only 42 of 74 markets examined have properties in that price range. "In today's market, prospective cottage owners must drive farther to find a property within their budget or spend considerably more money for a recreational property closer to home," says Chris.

The best bargains are to be had in Atlantic Canada. In Nova Scotia, $50,000 will buy an older cottage of 700 to 800 square feet, on a smaller lake. Waterfront properties in New Brunswick average from $50,000 to $90,000, and lovely Prince Edward Island has waterfront cottages ranging from $50,000 to $70,000. In Newfoundland, a waterfront property in Deer Park or Ocean Pond, about an hour from St. John's, averages just $30,000.

There's an increasing number of American buyers in communities such as Liverpool, Lunenburg and South Shore-Bridgewater, N.S.

Royal LePage says some U.S. buyers are choosing to invest their money in recreational property rather than the stock market, and are purchasing two or more properties -- one for personal use and another to be rented out or used by family or friends. Many U.S. buyers are also considering retiring in one of these communities, the report says.

At the other end of the scale, the country's hottest markets are Muskoka, Pointe Au Baril and Wasaga Beach in Ontario; Canmore in Alberta; and Fernie and Kimberley in British Columbia.

Standard cottages on Lake Muskoka, Lake Joseph and Lake Rosseau range from $325,000 to $350,000, but demand is strong. Cottage prices in Muskoka have gone up by 25 to 40 per cent in the last five years.

Properties that are farther away from Toronto command lower prices. Prices in the Kawarthas, about 2.5 hours from the city, range from $125,000 to $200,000 plus, while Haliburton prices range from $90,000 to $180,000 depending on access and the size of the lake.

Cottages on Georgian Bay in the communities of Wiarton, Bruce Peninsula and Tobermory are hard to come by, which has driven prices up to a range of $150,000 to $250,000. Properties on Lake Huron cost less, and lower than normal water levels there are keeping prices in the $100,000 to $200,000 range.

In Manitoba, prices in the border area of Lake of the Woods have gone up 20 to 40 per cent in the last two years. A standard waterfront property lists for $175,000, while an island property with water access goes for about $150,000. U.S. buyers are again pushing the market up, because they can easily get to the area by boat.

Quebec's hottest cottage markets are in the Eastern Townships, where prices went up 20 per cent during the last five years. Standard waterfront cottage properties are available from $200,000, and hobby farms are selling from $250,000 to more than $1-million.

In Saskatchewan, Regina Beach, Qu'Appelle and Last Mountain Lake are the places to be because they are located just an hour from Regina. A small trailer or bungalow on the water goes for $100,000 to $125,000. Alberta's Sylvan Lake, just over an hour from Edmonton and Calgary, is extremely popular. A lakefront cottage that needs work will set the buyer back by $300,000. Almost half of all Sylvan Lake properties are used as year-round residences.

In British Columbia, Cranbrook is cottage country, with the average price hitting $250,000. The real action in B.C., however, is in the chalet and condominium market. Fernie and Kimberley are popular ski destinations. Condominiums here range from $75,000 to $225,000 plus, while a chalet at the base of the hill starts at $425,000. A chalet located about 30 minutes away from the mountain costs about $250,000.

At the Big White ski resort, chalets range from $200,000 for an older property to $440,000 for a new chalet, while condominium prices range from $100,000 to $200,000.

The Royal LePage report says about 10 per cent of Canadians currently own a recreational property, and of those, 17 per cent plan to sell within the next two or three years. But with seven per cent of all Canadians saying they want to buy a cottage or chalet within the next few years, it's clear that recreational properties will be in short supply.