Recreational Property: Cottages A Hot Commodity In Ontario This Summer

Although recent reports have led us to believe housing sales in the big city are slowing down, in cottage country, sales are booming.

According to a recent report from Re/Max, sales of Ontario cottage properties have increased by 70 per cent, the first major boost in that market since 2008.

In the popular Huntsville/Lake of Bays area, realtors are seeing bidding wars over properties, especially in the price range below $400,000, while in the pricey Muskoka area, those $1 million+ "cottages" are now becoming more affordable to buyers.

So what's making the recreational property such a hot commodity for summer 2012?Meanwhile, outside of Ontario, cottage prices are still soft and have yet to see a dramatic sales increase in the recreational property market recent years.

But according to the Re/Max study, the drop in prices and increase in availability in popular areas such as Grand Bend, Orillia, Huntsville and Parry Sound, have encouraged Ontario buyers.

And as the study details, the buyers are new to the market: young couples with children, looking to invest in their future summers. According to Re/Max, this new crop of cottage hunters are happy to head further afield in the popular cottage regions, consider a backlot over waterfront locations and are benefitting from low interest rates.

Another few factors to increased focused on the cottage market are the mild winter in Ontario, encouraging buyers to start looking early, coupled with the boomer demographic who are selling, not buying, when it comes to recreational properties.

With all this interest in sales, Lake of Bays/ Huntsville realtors are witnessing bidding wars as the availability of property under $400,000 lessens, resulting in price increases of 10 per cent in the past two months.

For more on cottages:

Where can I afford a cottage in Canada?

How to buy your first cottage (part one)

How to buy your first cottage (part two)