By Sammy Hudes
The Could lengthy weekend marks the unofficial begin of cottage season for a lot of Canadians, however a brand new report says some seeking to purchase a trip residence of their very own are holding again till financial tensions settle.
The report by Re/Max Canada, which relies on a Leger survey it commissioned in March, stated decrease borrowing prices and improved affordability within the leisure market final yr had prompted renewed curiosity amongst potential consumers.
Nonetheless, that’s now being overshadowed by financial uncertainty that has chilled the nationwide housing market in latest months in response to the continuing U.S.-Canada commerce battle.
Based on the survey, 59% of individuals whose housing choices have been influenced by latest tariffs point out they’re much less assured within the leisure market than they have been in 2024.
“Market circumstances actually took successful once they began having these commerce discussions,” stated Re/Max Canada president Don Kottick in an interview.
However he didn’t rule out a fast turnaround, saying the market may open up quickly if Canada reaches a brand new commerce take care of its southern neighbour.
“I believe the underlying need is there. The overall consensus is that need will not be going to go away,” he stated of curiosity within the secondary residence market.
“Leisure consumers are quickly on the sidelines as they await for additional readability or indicators of financial stability.”
Whereas unit gross sales aren’t anticipated to say no year-over-year within the majority of Canada’s leisure markets, exercise is forecast to vary from flat to a ten per cent improve.
Re/Max brokers and brokers anticipate a nationwide common worth improve of about 1.8% throughout the Canadian leisure market in 2025, in accordance with the report.
Amongst Canadians much less assured within the housing market than they have been in 2024, 19% stated because of the tariff threats, they’re holding off on shopping for or promoting till there may be additional readability.
In Ontario, the market is “roughly paused,” stated the report, as each consumers and sellers control employment and different financial indicators.
Yr-over-year costs within the Ontario cottage market have declined throughout half of all areas analyzed, with declines starting from about one to twenty%, together with Niagara-on-the-Lake, Peterborough County, Northwestern Ontario, Orillia, and Grand Bend, largely because of will increase in stock.
The remaining 50% of Ontario cottage markets have seen costs improve, reflective of tight stock ranges in Simcoe County, Kawartha Lakes, Higher Sudbury, and Prince Edward County.
The common worth in B.C.’s leisure market is predicted to rise 1.1% in 2025, in accordance with the report, because of balanced market circumstances.
“I believe we will assume that Canadians are being a bit bit extra cautious,” stated Carrie Lysenko, CEO of on-line actual property brokerage Zoocasa.
“We’re seeing numerous fluctuations.”
However Lysenko stated some widespread cottage locations, equivalent to Ontario’s Muskoka area, are extra “immune” to fluctuations in general financial and actual property traits as a result of they profit from a “totally different profile of purchaser.”
“Muskoka is named the Hamptons of the north. Desirability is so excessive to have properties in these areas,” she stated.
“These are usually not first-time residence consumers. These are larger net-worth people which might be on the lookout for secondary or tertiary properties, funding properties that they doubtlessly are going to both take pleasure in for themselves or lease out.”
She stated there might be motive for optimism that different secondary markets in Canada will decide up too.
An evaluation earlier this month by Zoocasa stated tariffs are prompting Canadians to tug again from U.S. actual property, together with secondary houses in heat resort and trip markets.
It stated Canadians made up the biggest share of international consumers within the U.S. final yr with a median buy worth of roughly US$834,000, and that home purchases may improve as curiosity down south wanes.
“Once we take into consideration how far can your greenback go within the U.S. versus shopping for a secondary and trip property in Canada, that is likely to be extra reasonably priced and extra engaging,” stated Lysenko.
“It might probably put extra strain on a few of these trip locations, like Muskoka, like Whistler, perhaps elements of Vancouver Island.”
The Re/Max report additionally stated there might be hope for a rebound in Canada’s cottage nation as Canadians divert U.S. journey plans, evaluating the scenario to the elevated native tourism seen through the pandemic.
However it stated affordability will stay a key issue for potential consumers, with 57% of survey respondents figuring out it as essential.
“It actually is essentially primarily based on disposable earnings,” stated Kottick.
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Final modified: Could 19, 2025