A wave of equity-rich older people from Canada’s most in-demand housing market is beginning to heat up Muskoka and Haliburton, according to real estate agents in the area.
Most of these would-be buyers are aged around 50, and are seeking quieter locales farther north for retirement or telecommuting purposes, the Toronto Star reported.
While the Toronto housing segment has entered a cooldown stage just recently, its impact on “cottage country” remains undeniable, according to Lakelands Association of Realtors president Mike Taylor.
“We haven’t seen a slowdown like the Toronto market has over the last month as yet, but it may be filtering our way. As the end of May comes and we are getting more listings put on the market for waterfront, it will be interesting to see how that all plays out,” Taylor stated.
Latest numbers from the Association revealed that waterfront property sales in Muskoka, Haliburton, and Orillia went up by 5.1 per cent year-over-year, while sales volume dramatically shot up by 51.4 per cent in the same time frame (up to $118.1 million).
Royal LePage Lakes of Muskoka–Clarke Muskoka Realty broker Bob Clarke noted that a contributing factor is the record-low supply level of recreational homes in the area (now down by 30 per cent compared to 2015). This has led to a growing number of competitive offers since fall last year.
“We’re putting places out there and getting 30 showings in a day and a half,” Clarke said. “Torontonians have hit the Lotto Max jackpot and they come up here and say, ‘Who cares? What’s $299,000 instead of $279,000?’”
Gen X buyers snapping up more recreational properties than anyone else—report
Foreign buyers represent 10% or less of cottage purchases - Royal LePage