Ontario’s cottage market likely to suffer as a result of tariffs, experts say

Amid tariff threats, Canadians are likely to hold off on buying or selling properties, especially in Ontario’s cottage market.

A report released today by REMAX cited that 19 per cent of surveyed Canadians are halting any plans concerning property assets amidst economic uncertainty.

This attitude has trickled down to the recreational market, as the same number (19 per cent) indicated that while they were once considering selling or investing in a cottage, they will likely now make no moves until the market settles.

Concerning Ontario, one of Canada’s cottage economies, buyers and sellers are cautiously positioning themselves over the next six to 12 months.

According to REMAX, home prices have steeply declined by 50 per cent in recreational markets across the province on a year-by-year basis, with areas like Niagara-on-the-Lake, Peterborough County, Northwestern Ontario, Orillia, and Grand Bend being hit the hardest.

As for why, research shows that it narrows down to a severely bloated inventory, as there are substantially more cottages province-wide than there are people willing to show up and buy them.

However, despite economic concerns sidelining would-be sellers and buyers, REMAX predicts that this upcoming summer may show some slight changes.

Per region, REMAX projects that 60 per cent of Ontario’s cottage markets can anticipate prices to increase alongside pent-up demand, while 40 per cent of regions can prepare for a more balanced market, as prices are likely to decline, resulting in a spike in listings over the summer.

Concerning additional impacts from tariff anxieties, the once prosperous economy of Niagara-on-the-Lake, often favoured due to its proximity to the U.S., is no longer as viable as it once was, as travel warnings continue south of the border.

Alongside border properties shifting in desirability, REMAX also cited that since 50 per cent of Ontario cottage owners are likely looking to stay in their properties year-round, specifically due to expenses tied to living in the city, causing them to make their cottage their primary residence.

As a result, these potential sellers are even more likely to hold off on selling to get more bang for their buck.

According to Don Kottick, President, REMAX Canada, as long as these components work in tandem with tariff threats, an unstable market is likely to persist nationwide unless something changes soon.

“We are optimistic that recreational activity could pick up later this season, but there’s a big ‘but’ looming. Buyers and sellers will need further clarity around Canada’s approach to tariffs now that the election is behind us, before we see a return to more normal levels of activity,” said Kottick in a statement.

For more information on REMAX’s report, visit their official website.