Kenora Cottage Market Trends (2023)

The Kenora cottage market is currently balanced, however if inventory increases, conditions may shift in favour of buyers.

Kenora and Lake-Of-The-Woods is typically quiet in the winter months, with buyer and seller interest increasing with the arrival of warmer weather, with cautious optimism that 2023 won’t be as soft as some have predicted. Based on early interest from buyers, 2023 is expected to be steady, providing inventory levels increase substantially to support the demand. At this time in 2022, buyer interest was stronger, however this was an effect of low interest rates, which have since cooled many markets.

Average recreational prices in the Kenora cottage market have declined 59.9 per cent, from $852,857 in Q1 2022 to $341,700 in Q1 2023. Unit sales have also fallen 28.6 per cent, from seven sales in Q1 2022 to five sales in Q1 2023.

The vast majority of buyers  in the Kenora cottage market are Manitobans, at about 75 per cent, followed by 10 per cent buying locally from within Ontario, 10 per cent from the West and the remaining five per cent being foreign buyers. Gen X and Boomers make up 90 per cent of buyers in the region. The most in-demand features include waterfront locations, quiet neighbourhood/privacy, and good Wi-Fi access.

Key factors influencing recreational property buyers this year include rising interest rates; the cost of food, energy and overall cost of living; and a predicted recession. It’s expected that buyers in the $100,000-$500,000 range could put their purchasing plans on hold, as they tend to finance more than buyers with a budget of $600,000+.

With approximately 900,000 Baby Boomers expected to retire within the next three years, demand is expected to increase from the retiring population. Furthermore, with approximately $1 trillion expected to transfer from Baby Boomers to succeeding generations in the coming years, interest in the area is expected to grow.

“The Kenora/Lake of the Woods recreational market has been steady and consistently strong from 2011 through 2019. The market increased substantially in 2020 until the fall of 2022,” says Greg Kirby, Broker at RE/MAX First Choice Realty Ltd. “I expect 2023 to be softer, however I anticipate interest/demand will remain strong in the coming years.”

Average Kenora cottage market price is expected to decline 6.5 per cent through the remainder of 2023, and sales may see a 25-per-cent drop.