Surge in Ontario Cottage Sales
Due to historically high home prices around the Greater Toronto Area, more and more northern communities in Ontario have reported an increase in real estate sales activity as property buyers are looking in communities such as Muskoka and Haliburton to retire. In addition, many of these buyers, aged 50 or older, are looking to simply to find a quieter place to live compared to the hubbub of busy cities and increasingly busy suburban areas such as Mississauga or Oakville.
At the same time, it is clear that more and more people nearing retirement age is not the only explanation that can shed light as to why the property market in cottage-oriented areas has recently increased. Indeed, another part of the explanation is pointed, at least by some experts, to the current home price trends that exist within the Greater Toronto Area. As homes become more and more expensive in communities such as Oakville, Mississauga, Richmond Hill and elsewhere, those having the ability to telecommute as well as those who feel that it is time to retire are seeing the best financial option existing in the form of buying property up north.
Sales data clearly show that city-dwellers are
increasingly becoming attractive to life in the country. According to data
provided by Canadian Real Estate Association, there has been a massive increase
of over fifty percent when it came to sales volume numbers, as well as a five
percent increase in property prices in such regions when compared to the same
period over the previous year. In addition, it is clear that a common pattern
is emerging in the country as it has in the city over the past few years – low supply
coupled with an increasing demand. Such a recipe will only increase home prices
in such regions, and as the numbers show, it is clear that this has happened.
However, whether or not trends will increase is heavily dependent on the market
performance occurring in the Greater Toronto Area, which seems to be slowing
down compared to just a few months prior.
Due to the adoption of a new foreign buyer tax in the Greater Golden Horseshoe region by the Ontario government, there has been a large drop in sales volume throughout many communities in the Greater Toronto Area. At the same time, current price trends in the country make retirement homes more affordable compared to Toronto’s suburban regions.
Published Date: Jun 18 2017