The cottage market in Western and Eastern Canada is home to numerous desirable properties. Despite minimal new listings, and low market activity in this sector, the value of most recreational properties remains high. For Canadians who are lucky enough to already own a cottage, many are holding on to their properties hoping to cash in at a later date. However, with market conditions stabilizing across the country, experts have noted that now could be a favourable time for new investors to purchase a cottage for sale in Ontario. Despite high mortgage rates, the expected increase in supply will make it much easier for buyers to make their move! If you’re contemplating buying a cottage this summer, we’re here to help. Below we’ve outlined some key questions to ask yourself before pulling the plug on such a large investment. Follow along to learn more!
Does a Cottage Suit Your Lifestyle?
During the pandemic, it became commonplace for buyers to invest in or relocate to their vacation properties. Living on a remote property or on the water were also popular choices. Although, now that we have returned to normalcy, the economic landscape has returned to what it was prior to the pandemic. As such, many jobs that were once available remotely, have now returned to in-office. At the same time, conventional home prices are also on the rise with more people looking to move back into the city. For buyers of vacation homes, these trends present two important questions that must be answered: where do you want to live? And, does your job support remote work?
Of course, if you plan on using your vacation property only a few times throughout the year, these questions will matter much less. However, if you plan to relocate yourself to a cottage, answering these is critical in making the right decision. If you need to live near the city, owning a cottage may not be favourable for you. Most cottages are located outside of metropolitan areas, as this is what often gives them their appeal. But, for those who work remotely or don’t need to be in the office 24/7, a home outside of the city can be a perfect retreat. The peaceful surroundings and natural beauty offer a refreshing change of pace from the hustle and bustle of urban life.
Can You Afford a Cottage for Sale in Ontario?
For the majority of Canadians, a second home is out of reach. Not too long ago, cottages used to be very affordable—allowing several homeowners to buy a vacation property in addition to their primary residence. Cottages afford several benefits like opportunities for outdoor recreation, being closer to nature, and a break from everyday life. But, with so many Canadians flocking to cottage country during the pandemic, prices aren’t what they used to be. Now, buying a cottage is as expensive, if not more expensive, than your average single-family home. For this reason, it is crucial to evaluate your financial situation before deciding to purchase a cottage.
Despite higher-than-normal cottage prices, eager buyers will be happy to know that the cost of a cottage in Ontario is on the decline. In May, RE/MAX reported that Ontario had experienced an average price decline between five and 29 per cent over the last year.
Some Market Statistics for Cottages in Ontario
According to RE/MAX, several Ontario regions have seen significant drops in average sale prices. For example, Southeast Georgian Bay, Honey Harbour, and Port Severn have all seen a year-over-year decline in price of 28.7%. Another area with a large drop in price includes Sudbury with a 16% discount on average sale price.
Experts are predicting that cottage prices will increase in 72% of recreational markets by the end of 2024. This could make Q3 and Q4 of 2024 good times for cottage owners to profit off of their investments. In Muskoka and Haliburton Country, there has been a flood of sales despite affordability challenges. What’s interesting is that most buyers of cottages in Ontario are families and young couples. This is a stark shift from just a few years ago when the recreational property market was mainly driven by retirees.
Contact us Today!
Finding a cottage for sale in Ontario is an exciting process! If you have any questions about what you read, or a property in the area, contact us today. Discover more information on buying and selling cottages, when you reach out to one of our trusted team members. Be sure to check out our Instagram page for the latest updates and more. We’d be happy to help you find an awesome property in Ontario. Feel free to reach out to us at any time, we look forward to working with you soon!