Buyers are typically looking for a four-bedroom cottage that’s winterized and has a year-round access road. Two other factors important in their decision-making are elevation and exposure.
Demand is strong for properties in Ontario’s most popular cottage areas this year. But unfortunately for prospective buyers, inventory is lower in several regions.
Muskoka
Prices have been increasing in recent years for cottages in Muskoka, but that hasn’t dampened buyer interest, says Richard Scully of Harvey Kalles Real Estate in Muskoka.
“This year sales are down a little bit only because inventory is down significantly – by about 35 per cent,” estimates Mr. Scully, whose region includes prime real estate in on Lake Joseph, Lake Rosseau and Lake Muskoka.
“Typically if someone comes up with a couple million to spend, I’d show them eight to 10 properties that meet their criteria so they have a cross section. But now when they come up I might only have two or three properties to show them. It’s hard for someone to make a decision based on two or three.”
One reason for Muskoka’s enduring popularity is its infrastructure. It has several marinas and golf courses, as well as kilometres of boating over the connected lakes, which makes it easy to visit with friends and socialize with neighbours.
“You can take your boat to the golf course, out to a restaurant, or to the liquor store. You don’t get a lot of that in other (cottage country) areas,” explains Mr. Skully.
He says buyers are typically looking for a four-bedroom cottage that’s winterized and has a year-round access road, either privately or publicly maintained. Two other factors important in their decision-making are elevation (most buyers are in their 50s or older and don’t want a lot of stairs), and exposure.
“They want [the property to face] south to northwest; that gives them all-day sun.” As for waterfront, few bother to ask because, as Mr. Skully says, “99 per cent of all our product is waterfront.”
Haliburton
The real estate market got off to a slow start this year in Haliburton’s cottage country thanks to Mother Nature.
Demand is strong for properties in Ontario’s most popular cottage country areas – Muskoka, Haliburton and the Kawarthas.
“Things started to thaw, then we got a mid-April storm,’ says Jeff Strano of Remax North Country Realty Inc. Brokerage in Haliburton. “Ice usually goes out of the lake in April and this year it wasn’t until the first week in May,” he says, adding buyers aren’t willing to make the trip if they can’t see the waterfront and assess the quality of the water and its depth near shore.
“We had a warm and sunny day in March and the phone was ringing off the hook because people can’t wait,” says Mr. Strano. “Our area is weather driven, similar to some of the other cottage areas.”
What they’ll find when they arrive now is a drop in inventory. “In the last five years there’s been a drop in listings and properties for sale and there’s been a steady increase in buyer demand, which drives up prices,” says Mr. Strano. “We were up 10 per cent last year, which is huge for our area.”
While there are a lot of high-end properties in the region, there are fewer than usual available for sale. “Last year we had 44 listings above a million dollars and only about half sold. And this year we have about 20 listings over a million [dollars] but I expect that number to increase.”
Mr. Strano maintains buyers can get more bang for their buck here. “If you compare Haliburton to the Muskoka area, what you’re getting for that million is so much more. If you have one to two million [dollars] you can get an amazing property with lots of frontage, high-end finishes, and a good quality build,” he says.
High-end buyers are looking for “a big lake for boating, a big lake view, and a rocky shoreline that reminds them of Georgian Bay,” as well as good exposure that gives them more sun light, he adds.
“The main demographic we work with are between the ages of 30 and 60 and they want a property with nice waterfront, well maintained. The younger bracket of that likes finishes and a rustic chic-type style, whereas the more mature segment want better access, a more level lot (fewer or no stairs) and don’t care as much about the style. They want clean and functional.”
Troy Austen of Haliburton Remax North Country says he is meeting new buyers every day and seeing a lot of multiple offers. “A lot of people are buying their principal residence here. It’s more affordable and with the internet they only need to be in the city one or two days a week.”
“The market is hot,” maintains Mr. Austen. “Last year was my best in 23 years.”
“It’s the go-to place for weekend warriors. It’s just 2½ hours from the GTA, still affordable, and taxes are good.”
Kawarthas
Greg Ball may be biased when he says cottages in the Kawarthas are “a heck of a great investment.” But the real estate sales rep, based in Lakefield, who has 23 years experience in the business, is also quick to back up his claim.
“Anyone who’s bought a cottage here in the last 15 years is very pleased with their returns, anywhere from five to 20 per cent annually.”
The market, he says, is very active and there’s not enough inventory to keep up with demand. “We have five buyers for every cottage on the market. We’re seeing currently multiple offers on a lot of the cottages.”
Mr. Ball believes owning a cottage in the Kawarthas has many benefits, including a drive from the GTA that is under two hours; a 30-minute drive to Peterborough; the Canadian Shield; and navigable waterways.
“You can go to Florida and back on the Trent-Severn Waterway.”
And the drive isn’t bad either. “The 407 [highway] has made the commute easier if people want to avoid the nasty 401.”
This content was produced by The Globe and Mail’s Globe Content Studio. The Globe’s editorial department was not involved in its creation.