Experts say cottage country prices will jump up another 30% – Barrie 360Barrie 360
A property in Muskoka may cost 20 percent more than a year ago.
Remax’s annual recovery report predicts the average selling price of a vacation home or cabin in some Canadian markets will increase by as much as 30 percent.
Christopher Alexander, chief strategy officer, says inventory is thin, but recreational property is still seen as “an affordable option in such a tumultuous market.”
“There are still many recreational markets across Canada that are considered affordable despite growing demand and rising prices,” says Alexander.
Fueling the drive north is a push of young families, many from GTA and Hamilton, who, according to Alexander, watch Muskoka for being priced out of urban centers.
The young families who are “hurting supply and affordability” are also not buzzing as the time an entry is brought to market in Muskoka is 20 percent lower than in 2019.
Another notable trend is the influx of first-time buyers into the Muskoka area. Many of them have had enough of the unconditional, exorbitant, blind-giving madness in their urban markets.
But these first-time buyers are taking what Remax calls a wait-and-see approach when buying in Muskoka.
“The hustle and bustle of activity is driving demand for development to a level we’ve never seen before,” says Elliott Sheaves of Alair Homes Muskoka.
Construction activity also appears to reflect the resale market in Muskoka.
“We’re seeing similar trends in the home improvement market as we are in real estate as more people move here or renovate their cottages,” says local developer Elliott Sheaves of Alair Homes Muskoka.
Sheaves says the lack of travel and the spate of relocation activity are driving the demand for development to levels he has not seen before.
“Combine that with a volatile supply chain and the result is an obvious increase in construction costs,” he says. “The good news is that property values are rising and most homeowners can benefit from higher equity and lower lending rates.”
Meanwhile, new data shows how fast house prices are rising across the country.
The Teranet-National Bank’s recently published Composite House Price Index, which tracks the resale of single-family homes, rose 2.4 percent in April from March.
That report says the rapid price hikes outside of Toronto are happening in smaller towns like Barrie, where the average price rose 35.8 percent in April year over year.