A slice of property in Muskoka may cost 20 per cent more than it did a year ago.
The annual recreational report by Remax, suggests the average sale price of a cottage or cabin will increase as high as 30 per cent in some Canadian markets.
Chief Strategy Officer Christopher Alexander says inventory is stretched thin but recreational properties are still seen as “an affordable option in such a turbulent market.”
“There are still many recreational markets across Canada that are deemed affordable, despite the growing demand and rising prices,” says Alexander.
Fuelling the drive up north is a push by young families, many from the GTA and Hamilton, who Alexander says are looking at Muskoka because they’ve been priced out of urban centres.
The young families “impacting supply and affordability” aren’t humming and hawing either as the amount of time a listing in Muskoka is posted on the market has dropped 20 per cent, compared to 2019.
Another notable trend is the influx of first-time homebuyers to the Muskoka region. Many of which are fed-up with the condition-less, exorbitant, blind-bidding madness in their urban markets.
But those first-time buyers are taking what Remax calls more of a “wait-and-see” approach when buying in Muskoka.
Building activity appears to be mirroring the resale market in Muskoka as well.
“We’re noticing similar trends in the building market as in real estate with more people relocating here or renovating their cottages,” says local builder Elliott Sheaves of Alair Homes Muskoka.
Sheaves says the lack of travel and the flurry of relocation activity is driving demand for development to levels he hasn’t seen before.
“Combine that with a volatile supply chain and the result is an obvious spike in the cost of building,” he says. “The good news is with real estate values increasing most cottage owners are able to take advantage of increased equity and low borrowing rates.”
Meanwhile, new data shows just how fast home prices are rising nationwide.
The recently released Teranet-National Bank Composite House Price Index, which tracks resale single-family home sales, increased 2.4 per cent in April from March.
That report says the rapid price gains are happening outside of Toronto in smaller cities like Barrie, where the average price was up 35.8 per cent year-over-year in April.