Cottage Market as Hot as the Camp Fire!

If you're eyeing the cottage scene, you might wanna buckle up because it's looking like another roller coaster year in 2024. Recreational property prices are expected to jump by a solid 6.8%. So, if you’ve got your sights set on a cozy lakeside spot, it’s time to pay attention.

Despite a slew of challenges—from soaring interest rates to affordability headaches—cottage owners across Canada are sticking to their guns. Rather than flooding the market with listings, most are holding tight. Why? They're not just in it for the kicks; the lifestyle and potential long-term gains are too good to pass up.

RE/MAX Canada's latest scoop from their 2024 Cottage Trends Report is telling us that sales might not just hold steady but actually rise in most regions, with some expecting increases from 3% to a whopping 50%. That’s not just optimism; it’s a signal that the cottage life still has plenty of allure.

Remember when COVID hit and suddenly everyone wanted a piece of the great outdoors? Prices soared by an unreal 39% from 2020 to 2022, with folks clamoring for waterfront spots. Fast forward to now, and things are shifting. The pandemic fog has lifted, and with folks heading back to offices and borders reopening, the heat from the market had cooled.

However, don't expect a massive drop in prices or a surge in listings this spring. Interest rates are still a drag, keeping some potential buyers at bay. But there's a glimmer of hope. Most lenders and economists are preparing for rate reductions to start this summer. So, for those grappling with variable-rate mortgages, hang in there—the tide could turn.

With rentals, it’s a mixed bag. Some savvy owners, like Sarah Etherden who rents out her spot on Kennisis Lake, managed to keep their heads above water by adjusting their strategies. But with new laws and more competition, it’s getting tougher to bank on rental income alone.

For those thinking of diving into the market, whether to buy or rent out, keep your eyes peeled for regulatory changes. They could seriously shake things up, especially for anyone looking to snag a deal on a rental property.

As we paddle through 2024, expect buyers to be more strategic. The dream of owning that perfect retreat hasn't vanished; it's just gotten a bit more competitive. If you’re planning to make a move, consider lining up your financing. If you're ready to go, don't wait. If you need time, consider striking during the off-season when competition thins out.

And for those of you pondering the future—maybe keeping a cherished family cottage in the family or thinking about succession planning—there's plenty to consider. The landscape is evolving, and how you navigate it could make all the difference in securing that idyllic escape or setting up a legacy for the next generation.

Curious about what all this means for your dream of cottage ownership? Wondering how new short-term rental restrictions might affect your plans? Drop me a line, and let’s chart a course through these bustling waters together. Dive into the market with your eyes wide open—it’s the smart way to snag that perfect summer spot!

Let's do this before the market gets so hot you can roast marshmallows on it.

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