by Angela Balan – Pilarski Real Estate Group
Who’d of thought that back in 2019, a virus would create unprecedented demand for cottage real estate in Ontario – in Canada? Well, it did. Bidding wars. Buyers foregoing inspections. Properties bought sight unseen. YIKES! Royal LePage reported that from 2020 to 2022, cottage prices jumped an incredible 39 per cent, with waterfront properties reaching an aggregate price of $736,900, up from $498,111.
Fast forward to 2024. After the 2023 interest rate hikes, rise in inflation, supply chain challenges and labour shortages, here we are. Certainly, the heat of the cottage market has cooled, prices are down around 5% and Buyers are hopeful that the spring could bring an influx of affordable inventory. But while some cottagers are selling under financial strain, Buyers should probably not get their hopes up. The prevailing view is that cottages will still be in demand in 2024 with three main factors shaping the market: INTEREST RATES, SHORT-TERM RENTALS and a LACK OF INVENTORY.
Andrew Cruickshank at Cottage Life Magazine answers 3 key questions for us:
1. How are interest rates affecting the cottage real estate market?
2. Has the short-term rental market finally peaked, then?
3. Can we expect to see more cottage inventory on the market in the spring?
Me? I’m not as pessimistic as many of the experts. I believe that Buyers will need to be smart when bidding on cottages this year. Figure out your purchasing strategy NOW.
- Find the agent you want to work with.
- Start monitoring the listing sites.
- Get your finances lined up – and, there’s lots of legwork to be done with this one!
These are the kinds of things Buyers need to think about to secure their dream cottage deal in 2024.
