Similar to many other recreational markets across Ontario, the Rideau Lakes cottage market is currently experiencing balanced conditions. Baby Boomers and Gen X buyers are driving market activity – specifically families and retirees, looking for waterfront properties and/or those in quieter neighbourhoods with proximity to recreational activities, such as water skiing.
Average prices in Rideau Lakes declined by five per cent year-over-year (from $989,718 in Q1 2022 to $939.950 in Q1 2023), while the average number of property sales decreased by nine per cent year-over-year (from 11 in Q1 2022 to 10 in Q1 2023).
Overall, average prices in the Rideau Lakes cottage market is expected to decrease modestly by one per cent through the remainder of 2023, while sales are anticipated to fall by five per cent by year-end.
Despite the number of sales declining, the recent stability on interest rate hikes has restored buyer confidence in Rideau Lakes, resulting in an anticipated rise of demand – a trend that is already beginning to materialize.
“The economic uncertainty we’ve experienced over the last year, along with rising interest rates have heavily impacted consumer confidence in our region – especially among those that relied on a home equity line of credit from their primary residence for down payments. This has resulted in a slower start to a normally active time of year,” says Rob Garvin, Sales Representative, RE/MAX Affiliates Realty Ltd. “However, with the recent pause on interest rates it’s already brought back more consumer confidence into the market as reflected in current average sale prices.”