03/26/2021 Based on a new report from Royal LePage , It’s not just the housing market in Ontario that’s hot right now, the average price of a cottage, cabin, or ski chalet has been skyrocketing over the past year and there’s no end in sight. Cottage and recreational property sales have seen a buying frenzy since the beginning of the COVID-19 pandemic with double digit increases. Now a new survey predicts there will be another double digit increase this year of 15 per cent in Canada, and a 17 per cent increase in Ontario.

Sales are being driven by many people’s ability to work from home and the historic low interest rates. Its also driven by the fact that some buyers have saved money during the pandemic because they haven't been able to travel.

With scarce supply and high demand, prices have been soaring as some people decide to leave city life behind to move to smaller towns and cottage country. According to the report, demand has been extremely high in Ontario, particularly in the Muskoka area. Muskoka, like many smaller communities within a reasonable drive from the GTA, was particularly impacted by the migration out of the GTA, and by buyers who accelerated their long-term plans to purchase a second property. With demand being so high, the report notes that many buyers are having to put in an average of 4 to 10 offers before being able to secure a new place. The report also found that 87% of the recreational real estate professionals surveyed said that more than half of properties available on the market are selling above the asking price.