Manitoulin Island, French River, Sudbury Cottage Trends (2023)

The Manitoulin Island, French River and Greater Sudbury cottage market currently favours sellers – conditions that are expected to persist through 2023. Although, interest rates have contributed to a decrease in sales, low inventory in the region, coupled with the increased demand of spring/summer months will continue to favour sellers. Unique to the region, as compared with other cities in Ontario is that most recreational property buyers are local and not from larger city centres like Toronto – specifically families investing in secondary properties.

Both Gen X and Millennial buyers are driving market activity, with waterfront properties being the most in demand. Average recreational property sale price decreased by 20.7 per cent year-over-year (from $698,457 in Q1 2022 to $553,665 in Q1 2023), while the average number of sales decreased by 43 per cent year-over-year (from 40 in Q1 2022 to 23 in Q1 2023). Looking ahead, average prices in the Manitoulin Island, French River and Greater Sudbury cottage market are anticipated to increase five per cent over the remainder of 2023, while the number of sales is expected to decrease by five per cent.

The region has not been immune to economic factors such as interest rates.

“Interest rate fluctuations and continued hikes have been strong contributors to decreasing consumer confidence and stalling purchase decisions for many prospective buyers within our region,” says Marissa Arnold, Broker of Record of RE/MAX Crown Realty Inc. “As warmer weather returns and inflation and interest rate hikes ease, we are confident demand and desire for recreational properties will increase.”