28-05-2025
Hoping to cash out, a wave of retiring cottage owners face a buyer's market
For decades, Susan Van Norman's family cottage in Muskoka, Ont., was a cherished summer retreat.
Her parents built the cottage in 1973, and it was later inherited by Ms. Van Norman and her sister, Christine Ransom. It has been a gathering place for their three kids and seven grandchildren, who have spent long summer days fishing off the dock and have etched each person's height and age on a measuring stick in the small kitchen.
But at 71, Ms. Van Norman is retired and no longer able to shoulder the burden of maintaining it. The next generation isn't in a position to take it on either. After a harsh winter made the upkeep feel especially daunting, she and her sister decided it was time to let the property go.
May brings a chance to reset in Ontario cottage market
Ms. Van Norman plans to list the property within the next month, hoping for $800,000 to $850,000, but she's anticipating she may need to drop the price closer to $750,000 to make a sale before the season ends in October.
Ms. Van Norman is part of a wave of retirees looking to off-load recreational properties, but they're running headlong into a challenging market for sellers.
At this point last year, would-be cottage sellers were optimistic about the 2025 selling season. Inflation was easing, interest rates were dropping and there were expectations that consumer confidence would bounce back.
But economic headwinds, including Canada-U.S. trade tensions and a federal election at home, have meant that the Canadian housing market, which was poised for a comeback, has stalled.
It's no different for the recreational property market, which got hit by a spring ice storm that delayed the traditional start of the selling season in Ontario. These factors have injected a fresh dose of uncertainty for potential buyers.
'We're two months behind in sales,' said Anita Latner, a broker with Anita Latner Realty in Muskoka. 'If you're buying a cottage, it's definitely a buyer's market.'
Since the beginning of May, inventory has surged in the Ontario cottage market. In southern Georgian Bay, realtor Mike Kearns said, 'supply is now outstripping demand in nearly every micromarket.' On Ms. Van Norman's Street alone, two cottages are already up for sale.
John O'Rourke, owner of Royal LePage Lakes of Muskoka Realty, said that while listings in the region have reached a 10-year high, sales are down 50 per cent from the same time last year.
Retirees are one of the primary drivers of the recent recreational market activity, according to Re/Max, which reported this month that the segment is fuelling recreational market activity in 70 per cent of regions surveyed. The survey also found that 17 per cent of cottage owners planning to sell in the next one to two years are doing so because their children aren't interested in taking over. Another 17 per cent are planning to sell as part of an estate decision.
This generational shift is expected to trigger a significant transfer of recreational property wealth – and could free up more cottage inventory that might, over time, improve affordability for younger buyers. But in the short term, the influx of listings is intensifying competition among sellers, forcing many to adjust their pricing expectations.
'You have to price strategically enough that you have a stronger value proposition than your competition,' said Mr. Kearns. 'Buyers who are out shopping right now are looking for deals.'
Affordability remains top of mind for cottage buyers: 57 per cent of those surveyed by Re/Max cited a reasonable purchase price as a must-have, while 35 per cent pointed to manageable maintenance costs.
Some retirees are weighing whether to wait for conditions to improve before selling, realtors say. But holding out comes with its own risks.
'They have to consider the carrying costs of the cottage for another year,' Mr. O'Rourke said. 'Maybe you get 5 or 10 per cent more if you wait, but that could easily be eaten away by maintenance, insurance and general upkeep.'
That's why realtors say preparation is more critical than ever for those looking to sell. Recreational properties that are clean, staged, freshly painted and professionally photographed – including aerial footage – have the best shot at attracting serious offers in a tepid market.
Ms. Van Norman isn't holding her breath for a better deal next year. Her goal is simple: to sell and close the chapter on a home that has meant so much to her family. She understands the cottage market isn't in her favour, but for her, waiting isn't worth it. 'It's time for it to go,' she said.
