As summer fades and temperatures drop across Canada, so too does the once red-hot cottage real estate market. With an increasing number of cottages available and declining sales, experts agree that now is an ideal time for buyers to make a move.
The frenzy of the COVID-19 real estate boom, characterized by skyrocketing prices and intense bidding wars, is over. Currently, there are more cottages on the market than at any time in recent memory, surpassing even pre-pandemic levels. In Ontario, for example, cottage sales have plummeted by over 40 percent from last year, reaching their lowest point in over two decades.
“This is a strong buyer’s market,” says John Fincham, a Muskoka Re/Max broker. He attributes the surplus of available cottages to several factors, including the extension of the federal foreign homebuyers ban, inflation, and high interest rates. These have all contributed to a slowdown in sales, giving buyers more negotiating power.
In addition to Ontario, other regions like Nova Scotia are also experiencing a cooling market. With fewer people seeking recreational properties, now is a prime opportunity for those interested in purchasing a cottage, particularly if they are open to properties farther from urban centers.
Ray Ferris, a realtor from the north shore of Lake Erie, observes that cottages are staying on the market longer—now averaging six months, compared to three months pre-COVID. He notes that economic uncertainty and high interest rates have caused buyers to take a more cautious approach.
Despite these trends, experts believe that cottage sales may pick up again in the fall, as people who enjoyed their summer vacations start considering buying their own retreat. “Most people make their buying decisions after experiencing a great vacation,” Ferris explains.
For those contemplating a purchase, the current market conditions offer a unique advantage. Buyers can take their time, conduct thorough inspections, and make informed decisions—luxuries that were hard to come by during the COVID-19 market frenzy.
In the long run, Ferris reminds buyers that real estate values tend to rise. “Prices always go up,” he says, reassuring prospective cottage owners that their investment is likely to appreciate over time.