By Sammy Hudes
The report by Re/Max Canada, which is predicated on a Leger survey it commissioned in March, mentioned decrease borrowing prices and improved affordability within the leisure market final 12 months had prompted renewed curiosity amongst potential patrons.
Nevertheless, 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 conflict.
In response to 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 a success after they began having these commerce discussions,” mentioned Re/Max Canada president Don Kottick in an interview.
However he didn’t rule out a fast turnaround, saying the market might open up quickly if Canada reaches a brand new commerce cope with its southern neighbour.
“I believe the underlying want is there. The final consensus is that want shouldn’t be going to go away,” he mentioned of curiosity within the secondary residence market.
“Leisure patrons are briefly 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% improve.
Re/Max brokers and brokers anticipate a nationwide common value improve of about 1.8% throughout the Canadian leisure market in 2025, in response to the report.
Amongst Canadians much less assured within the housing market than they have been in 2024, 19% mentioned because of the tariff threats, they’re holding off on shopping for or promoting till there’s additional readability.
In Ontario, the market is “kind of paused,” mentioned the report, as each patrons and sellers regulate employment and different financial indicators.
12 months-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 value in B.C.’s leisure market is predicted to rise 1.1% in 2025, in response to the report, due to balanced market circumstances.
“I believe we will assume that Canadians are being a bit of bit extra cautious,” mentioned Carrie Lysenko, CEO of on-line actual property brokerage Zoocasa.
“We’re seeing a number of fluctuations.”
However Lysenko mentioned some in style cottage locations, resembling Ontario’s Muskoka area, are extra “immune” to fluctuations in general financial and actual property tendencies as a result of they profit from a “totally different profile of purchaser.”
“Muskoka is called the Hamptons of the north. Desirability is so excessive to have properties in these areas,” she mentioned.
“These will not be first-time residence patrons. These are larger net-worth people which might be in search of secondary or tertiary properties, funding properties that they probably are going to both take pleasure in for themselves or lease out.”
She mentioned there could possibly be purpose for optimism that different secondary markets in Canada will decide up too.
An evaluation earlier this month by Zoocasa mentioned tariffs are prompting Canadians to drag again from U.S. actual property, together with secondary houses in heat resort and trip markets.
It mentioned Canadians made up the biggest share of overseas patrons within the U.S. final 12 months with a median buy value of roughly US$834,000, and that home purchases might improve as curiosity down south wanes.
“After 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,” mentioned Lysenko.
“It will probably put extra strain on a few of these trip locations, like Muskoka, like Whistler, possibly elements of Vancouver Island.”
The Re/Max report additionally mentioned there could possibly be hope for a rebound in Canada’s cottage nation as Canadians divert U.S. journey plans, evaluating the state of affairs to the elevated native tourism seen in the course of the pandemic.
However it mentioned affordability will stay a key issue for potential patrons, with 57% of survey respondents figuring out it as a must have.
“It actually is basically based mostly on disposable revenue,” mentioned Kottick.
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Final modified: Might 19, 2025