New report finds slowdown in cottage sales

A report conducted by Remax is shedding light on a lack of cottage sales this season.

According to the report new data shows that demographics have changed, and young couples and families are now leading the trend of owning 82% more recreational homes.

According to the documented findings in 2018, historically retirees made up the dominant demographic in the more than 20 Canadian communities analyzed.

Experts say those trends are evident in Muskoka; housing prices in Muskoka have seen a decline of 5 percent yearly, influencing people to hold onto their properties.

Remax says that other impacts include inheritance, with many young couples inherting cottages without worrying about a mortgage payment and leading to a slower market with less inventory.

"People will do everything they can to hold on to them and a lot of cottages have been paid off for a long time they are family heirlooms so to speak, and so interest rates don't necessarily affect people's ability to hold onto a property," said Christopher Alexander, president of Remax Canada.

Real estate experts say while buyers may have to wait it out a bit longer before purchasing their dream cottage, they add that the rental market is seeing an increase with plenty of inventory for those still looking to book their summer getaway.

"A lot of it has to do with consumer confidence, I believe consumers are feeling a little bit more confident about real estate this year because we are probably going towards interest rate deductions as opposed to last year at this time we were going to interest rate hikes, so uncertainty certainly plays into this," said Peggy Hill, CEO of the Peggy Hill Team.