Timing cottage prices, Ontario or anywhere, is a gamble.
Like all Ontario real estate, when you buy or sell could make the difference between scoring a substantial profit or just breaking even on cottage prices. You can buy now while cottage prices in Ontario are at historic highs and maybe regret it later, or sell an investment property to pay off debts.
Some expert tips on how to gauge cottage prices in Ontario.
Check Out Average Cottage Prices (Ontario, 2022)
Just look at what is happening with cottage prices in Ontario in 2022.
National realtor Royal LePage predicted double-digit gains for cottage prices in Ontario in March 2022. Multiple offer scenarios are common in the notoriously high demand, low supply cottage market.
That predicted 13% uptick in Ontario cottage prices put sold stickers at around $738,000. It’s good news for cottage owners, who enjoyed an even better 34.6% increase in recreational home prices (31.8% for prime waterfront properties) in 2021.
Here’s what rising cottage prices would have meant for you if you bought an Ontario cottage in 2021 —
- Land O’Lakes saw sky high price hikes of 60.7%, for an average of $723,000.
- Orillia was close behind, with waterfront prices up 51% to $1.2 million.
- Kawartha cottage prices soared by 44%, making the average cost of owning recreational property $650,000.
- Buying waterfront cost Kawartha weekend warriors about $889,000, a 28.8% gain.
- South Georgian Bay had the priciest recreational real estate at $881,000, up 27.5%.
What to know about buying waterfront property.
Housing Price Predictions for 2022 and 2023
Let’s say you made your move, bore up under blisteringly high cottage prices, and paid premium interest rates. Now, thinking about will housing prices drop in Ontario in 2022 is giving you nightmares.
We can’t say anything for sure, but prices for most homes climb over time. Just look at average sold prices in Ontario since 2020 —
- $725,000 in July 2020
- $1.086 million at their February 2022 peak
- levelling off to $823,036 in July 2022.
Prices have dropped with slowing housing demand fueled by doubling of interest rates (from 2.7% to 5.45%) and inflation woes. That won’t necessarily prevent you from profiting in 2022 or 2023. Calculate current inflation rates in Ontario.
Will Cottage Prices Go Down in Canada?
Re/Max is noncomittal but optimistic about cottage prices in Ontario.
That makes sense! Recreational property owners are happy (75%), with most looking for :
- access to waterfront
- outdoor recreation.
All young professionals and middle-aged information workers need to work from their cottage is an Internet connection and office space. Read Re/Max’s analysis. (Be sure to get cottage insurance if you make the move. Flood hazards of buying waterfront or creekside.)
Ratehub.ca agrees remote work could lead to demand for more space in 2022, with average home price hikes of 4% to 7%. The online mortgage brokerage likes suburbs with large homes near urban areas like Toronto for at-home workers. Still, staycations make cottages a good investment bet. Buying rental property for an Airbnb.
Mortgaging fixer upper cottages for sale (Ontario).
Why You Need a Real Estate Lawyer
Cottage prices got you excited about buying or selling for investment purposes? Axess Law has virtual lawyers for real estate closings anywhere you are. We prepare closing documents for flat rate fees that are less than you would typically pay traditional lawyer services.
What to bring to your Axess Law real estate lawyer appointment.
Our licenced legal team reviews your agreement of purchase and sale for clauses that protect your interests if a buyer or seller wants to withdraw. We include provisions that allow you to change your mind by mutual consent, or accept a higher offer with 48-hours notice. Finding a lawyer for the first time home buyer (Ontario).
Your Axess Law virtual lawyer (or if preferred, in person real estate lawyer) discharges existing mortgage obligations. We liaise with your lender to sign new mortgage loan documents.
Axess Law looks for construction liens from unpaid subcontractors that could delay your ability to assume title to a cottage, and ensures you have your Tarion warranty information before you accept the keys to new construction. Transfer title to an Ontario cottage.
Affordable Real Estate Lawyers, Anywhere You Are
Access lawyers for less in Greater Toronto Area, Ottawa, or anywhere in Ontario when you buy, sell, or transfer property. Axess Law’s flat fee real estate lawyers are affordable, and our rates are all inclusive (excluding taxes, disbursements, and third-party charges). Axess Law offers you only the legal services you absolutely need. Your final invoice includes no surprises or hidden charges. Your itemized statement of adjustments is explained when we deliver it, and we answer any questions you have about it.
Book Online or Phone Appointments Today
Dial our 647-479-0118 lawyer line, toll free to 1-877-402-4207, for remote real estate lawyer closings 7 days a week. Our virtual real estate lawyers video conference with you anywhere in Ontario. Prefer to meet your lawyer in person? Drop by any of our conveniently located Ottawa or Greater Toronto Area law offices to make appointments, or book online with our easy web form.
Axess Law has day or evening appointments, onsite parking, and easy transit access.
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