Despite continued cooling market trends in the GTA, interest in cottage country recreational property continues to grow, with strong demand creating a shortage of inventory. This is in part due to GTA homeowners leveraging the high level of equity in their city homes, and bringing that money north to the Kawartha and Halliburton regions, in search of the cottage lifestyle.
With low inventory and high demand, it is a good time for sellers to take their properties to market.
Properties are selling quickly. Although trends like designated offer dates and multiple offers are popping up more frequently, desirable cottage properties have been known to sell even before the sign goes up in the yard. From a motivated buyer’s perspective, it would make sense to have all financing considerations in place, and be prepared to act should their ideal property become available.
According to the Canadian Real Estate Association (CREA) stats for sales in Haliburton are trending upwards. In year-to-year comparison for 2015 vs 2016, prices for recreational properties are up 10% and sales are up 16%.
On a year-to-date basis, waterfront sales were up 2.9% from the first five months of 2016. This was the highest level on record for this period. The median sale price for waterfront properties was up 13.3% from a year earlier to $425,000 in the first quarter 2017.
Similar trends are seen in the City of Kawarthas Lakes, where overall supply is currently running near record lows. There were just 280 active residential listings on the Association’s MLS® System at the end of May 2017, dropping 36.4% from May 2016*.
“At this point the local housing market appears to be on its way to another record year in 2017,” said Mike Stahls, President of Muskoka Haliburton Orillia – The Lakelands Association of REALTORS®. “That said, housing markets not too far south of Cottage Country cooled in May in the wake of recently announced changed to Ontario housing policy. That did not seem affect our area in May, but it will be worth keeping an eye out in the months ahead for any signs of those Greater Golden Horseshoe demand and supply trends creeping into the Muskoka, Haliburton and Orillia areas.”
*Note: No stats available specific to recreational properties for the City of Kawartha Lakes.
**Numbers and data believed to be true and accurate at the time of writing. Data available is limited to property sales reported by the Canadian Real Estate Association, and excludes properties sold privately. Not intended to solicit those already under contract.