The Muskoka cottage market currently favours sellers – conditions that are expected to continue through the remainder of 2023. Average price in the Muskoka cottage market decreased by 14 per cent year-over-year (from $978,950 in Q1 2022 to $841,887 in Q1 2023). The average number of sales decreased by 34.5 per cent year-over-year (from 284 in Q1 2022 to 186 in Q1 2023). Inventory in the region has more than doubled from 2022-2023 as a result of sellers taking advantage of the prices, especially in regards to the waterfront market.
Families, retirees and investors are currently driving market activity in the region in a trend that’s likely to persist this year, with the majority of buyers coming from the Greater Toronto and Hamilton areas. With approximately 900,000 Baby Boomers expected to retire in the next three years, the region is expected to see demand from retirees increase.
Furthermore, over the next several years, as a result of the greatest intergenerational transfer of wealth to date, it’s likely that succeeding generations may have more opportunities to purchase recreational properties at higher price points.
“Muskoka is a good option for many buyers due to the proximity to Toronto-GTA. Buyers flock to the areas for its access to key amenities like waterfront, reliable wi-fi, and more. Despite many of the supply challenges across the country, Muskoka inventory has actually increased year-over-year, in large part due to sellers taking advantage of the current market conditions,” says Katie Rowe, Broker Manager, RE/MAX Professionals North.
Average sale price in the Muskoka cottage market is expected to increase two per cent through the remainder of 2023, while the number of sales may decrease by five per cent.
