The best time to buy a cottage has passed as demand continues to outstrip supply despite a return to pre-pandemic travel and interest rate increases, causing property prices to continue to soar.
The average price of a single-family home in Ontario’s recreational regions is expected to increase 13% by year’s end to $737,890, as inventory is at an all-time low and will likely be the case throughout 2022.
Prior to the pandemic, the same type of property in Muskoka would have cost approximately $400,000.
While prices continue to rise, they are not appreciating as quickly as they did in 2021. Last year, the average price for a recreational property in Ontario increased 34.6% year-over-year to $653,000, compared to 2020 — the strongest appreciation in the country. During the same period, the average price of a home on the waterfront increased 31.8% to $888,000.
Today, more than ever before, cottage buyers are using their properties year-round, making them even more valuable. The vast majority of buyers are from the Greater Toronto Area and Golden Horseshoe region, given their close proximity to recreational hotspots.