Real estate in Ontario's cottage country has become unbelievably expensive
Ontario's cottage country real estate markets have historically served mostly recreational buyers, though that trend was recently turned upside down when residents of larger urban centres no longer bound to 9-5 office shifts started moving en masse to places like the Kawartha Lakes and Georgian Bay.
A mass urban exodus to cottage country has, as one would expect, dramatically driven up housing prices in these markets, pricing out locals in the process.
The Canadian real estate market has grown to new heights since the dark days of 2020, and while the cost of homes nationwide surges upwards, the price appreciation witnessed out in cottage country is completely off the charts.
Like much of the country, these cottage markets have experienced pronounced sales decline since the Bank of Canada hiked interest rates to address runaway inflation while simultaneously witnessing surges in average prices.
In a recent blog post, RE/MAX Canada reports that Kawartha Lakes home sales plummeted by a shocking 35.5 per cent year-over-year in May as the median price in the region spiked by 30.4 per cent. It will not cost you an average of $806K to buy into an area that was once known for its quaint and comparatively cheap cottages.
It's much the same in the Georgian Bay area, where sales tumbled by almost 34 per cent while the benchmark price for a single-family home increased by 17 per cent to $804K.
RE/MAX Canada stressed in its post that "the main issue in Muskoka, as in many recreation markets, is a lack of supply."
Lack of supply has been a top concern among real estate experts for several years now, who insist that a critical shortage in new housing supply is driving up prices in markets across the country.
But fear not, as experts suggest that this price growth appears to be reaching a peak in the region. Muskoka's home prices are quickly approaching their all-time highs, but are considered unlikely to surpass this high water mark.
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