Cottage prices nearly double in one region of Ontario in 2024
Published April 30, 2024 at 10:48 am
As summer approaches, the call to cottage country is strong for many urban Ontario residents.
Those looking to take the leap into cottage ownership, though, may want to check out the just-released Re/Max Canada’s 2024 Cottage Trends Report.
The report looks at the prices and trends in cottage country areas across Ontario and Canada.
There was speculation that the real estate market would be flooded with cottage sales listings after the federal government announced a change to capital gains or the net profits from the sale of an asset like a stock or investment property.
Under the proposed changes, set to take effect on June 25, selling an investment property will result in higher taxes.
But the report indicates people won’t rush to sell cottages. In fact, it found 64 per cent of Canadian cottage owners have decided not to sell this year.
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“Even the change to the capital gains tax, that will take effect on June 25, won’t spark a widespread flood of new listings and sales by cottage owners trying to get in under the wire given the narrow window,” said Christopher Alexander, president, Re/Max Canada.
But brokers and agents in some regions have reported a recent uptick in listings that may be tied to the new change, and it could also prompt some Canadians to have estate planning discussions earlier, Alexander added.
There are also bans or restrictions on short-term rentals in some provinces across the country, which could impact cottage sales. But a Leger survey commissioned by Re/Max found that these restrictions have not swayed recreational property owners to sell, with 58 per cent remaining steadfast in their investment.
“Years of research have shown that Canadians consistently see value in real estate ownership – both as a necessity and an investment,” said Alexander. “Those who have already gained a foothold in the recreational property market are determined to hold on to this asset, despite mounting affordability concerns across the country.”
But there are places in Ontario expected to have lower prices for buyers, according to the report.
Grand Bend, Peterborough, The Kawarthas and Southeast Georgian Bay, Honey Harbour and Port Severn are listed as buyer’s markets with prices expected to hit $1,194,340 in some of these areas.
Regions such as Muskoka and Haliburton County – two of the most popular cottage markets in the province – have reported a flood of sales, compared to other Ontario regions, the report said.
However, Muskoka and Haliburton County are listed as balanced markets — meaning prices aren’t dipping too low or too high.
Many Ontario’s cottages have declined in price.
Year-over-year, 54 per cent of Ontario’s cottage markets saw average prices decline between five and 28.7 per cent, including Muskoka (down five per cent, from $1,487,265 first quarter of 2023 to $1,412,237 in first quarter of 2024).
Grand Bend cottages are down eight per cent, from $912,135 in the first quarter of 2023 to $839,476 in 2024.
Southeast Georgian Bay, Honey Harbour and Port Severn are down 28.7 per cent, from $1,272,917 in the first quarter of 2023 to $906,967 in 2024.
Meanwhile, regions that experienced price increases include Manitoulin and French River. Simcoe County is also up 10.2 per cent, from $1,800,000 in early 2023 to $1,983,333 in 2024.
Haliburton County is up 18.7 per cent, from $816,112 in early 2023 to $968,794 in early 2024.
And notably, Peterborough and The Kawarthas are up a whopping 93.1 per cent, from $465,000 in the first quarter of 2023 to $898,000 to in the first quarter of 2024.
Re/Max brokers and agents in Ontario are anticipating cottage prices to increase in 72 per cent of recreational markets by the end of 2024, to the tune of up to 33 per cent.
The outlier is Simcoe County, where prices are expected to stay level due to the interest rate climate.
See the full Re/Max report here.
Lead photo: iulian_ursache