Canada's Cottage Country Anticipates Price Surge in 2024, Report Reveals

As spring unfolds across Canada, many are contemplating the prospect of purchasing a cottage or cabin amid a new report from Royal LePage forecasting potential price increases. Released on Wednesday, the report suggests that prospective buyers should exercise caution and budget meticulously before committing to such a purchase. According to Phil Soper, President and CEO of Royal LePage, the recreational real estate market is poised for a resurgence, with the national median house price projected to rise by approximately five percent. Soper attributes this trend to escalating demand fueled by inflation, noting that virtually every region in the country is experiencing growing demand and consequent upward pressure on prices.

The report underscores the impact of dwindling supply and heightened demand on recreational home prices, echoing findings from 2020 when prices surged by approximately 11.5 percent due to similar market dynamics. A recent survey conducted by Royal LePage among 150 recreational real estate professionals revealed that while 41 percent reported decreased inventory compared to the previous year, 64 percent noted sustained or increased demand.

Soper attributes this renewed interest in recreational properties to economic revival and growing confidence among buyers, particularly as uncertainty surrounding economic conditions eases and interest rates stabilize. Consequently, low inventory levels coupled with high demand are expected to propel price increases, with Atlantic Canada, British Columbia, and Ontario projected to witness the most significant jumps of 4.5, five, and eight percent, respectively.