Cottage properties market sees surge in listings

Cabin fever has roiled the recreational property market for years, but it is finally returning to more balanced conditions as supply increases and buyers fret over economic concerns and higher prices, Re/Max said yesterday. The realty firm said it had found a "substantial increase" in the supply of recreational properties listed for sale in Canada, as 91% of the areas it surveys were moving from being sellers' markets to something more favourable to buyers. Affordability is now a primary factor, Re/ Max said, as a result of serious upward pressure on recreational values in recent years. Rising energy prices and Canada's faltering economy have also dampened demand. As a result, "67% of markets reported softening in the number of sales year to date," Re/Max said, blaming part of that on tough winter conditions in the first four months of the year. "Over the last decade or so we have seen across-the-board double-digit price increases for recreational properties," said Re/Max spokeswoman Christine Martysiewicz, crediting the prosperity of the Baby Boomers and the longest period of expansion since the Second World War for that boom. Yet while market conditions have shifted, "don't expect to see bargain-basement prices or fire sales," says Michael Polzler, executive vice-president and for Re/Max Ontario-Atlantic Canada. "The recreational market continues to experience solid demand -- a trend that is expected to continue throughout 2008. The influx of new listings has yet to translate into downward pressure on recreational property prices. Prime waterfront properties, while more plentiful than in year's past, will still command top dollar."

(Source: National Post)