In case you’re prepared to get your dream cottage in Ontario, join the club — the competition for real estate in cottages is just warming up.
As per a new report from Royal LePage, the costs of recreational properties in Ontario are rising quick as demand keeps on soar during the pandemic.
The report expresses that homes in recreational markets all over Canada are costing more money, and Ontario is no exemption.
The report noticed that Muskoka was especially affected by the “relocation out of the GTA,” as were numerous other more modest communities within a reasonable drive of the city.
Royal LePage says the average cost of single-family homes in Haliburton County, Rideau Lakes, Southern Georgian Bay and the North Channel rose the most in 2020.
Muskoka, Kawartha Lake and Niagara also saw cost increments of around 20% in single-family homes in 2020.
Ontario cottages are more expensive
A Royal LePage Lakes of Muskoka broker says that a shortage of inventory added more fuel to the fire, creating competition in the market unlike anything ever seen before.
Around 56% of recreational property buyers in Ontario are making on average four to ten offers, according to the report, and 27% of agents representing sellers are getting more than ten offers per listing.
Practically 50% of Ontarians say that the pandemic has propelled them to move to a less-dense region, as per a Royal LePage survey, and almost 70% say that having the option to work from home is “significant.”
Since the beginning of the pandemic, supply can’t keep up with the increasing demand, according to a representative from Royal LePage ProAlliance Realty.
As most people haven’t had the option to travel for the last year, buyers of all ages and phases of life are searching for recreational properties that offer the flexibility and wi-fi quality connection, that will allow them to work remotely if they chose to, yet additionally have the rental potential.
The report says that the normal cost of a house in Ontario’s cottage will rise 17% in 2021 to $547,207.
That is up from $467,698 in 2020, which itself was 19.4% higher than costs in 2019.
Waterfront homes cost somewhat extra — in 2020, the total cost of a home on the water expanded by 21.5% to $673,400.
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