Despite 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%.
More recently, for the period of Jan. 1 to May 22, 2016 compared to Jan. 1 to May 22, 2017, prices are up 19% and sales are down 13%.
Similar trends are seen in the City of Kawarthas Lakes, where overall supply is currently running near record lows. There were just 193 active residential listings on the Association’s MLS® System at the end of April 2017, dropping 50.8% from April 2016*.
Residential prices rose 28% from April 2016 to April 2017, with average price going from $325K to $450K.
Mike Taylor, President of Muskoka Haliburton Orillia – The Lakelands Association of REALTORS® sums up the current market conditions: “Non-waterfront and waterfront sales are still at or very near record levels, which has been the story for some time now,” he said. “What has changed in recent months is how fast properties are selling, with the time between a listing and a sale the shortest it has ever been. This is closely tied to the current supply shortage and market tightness in the region.”
*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.