In the summer and fall of 2020, bidding wars for cottages in and around Ottawa were resulting in final sales of about 50 to 70 per cent over asking prices, according to local realtors. Now the market has cooled significantly, mostly because of high interest rates. , the cottage market in Ontario has mostly softened into balanced territory, making it a better time for buyers — as long as higher interest rates, fuel costs and food costs aren't a concern.
Closer to Ottawa, in the Rideau Lakes area, average cottage sale prices took a more modest dip of about five per cent, from about $990,000 in Q1 of 2022 to about $940,000 in Q1 of 2023. Sales remained steady. Rabidoux said recreational areas around Gatineau, Que., as well as Muskoka and the Bruce Peninsula, saw incredible gains in prices from 2020 to early 2022 — almost double in some spots.
"Fuel costs have gone up substantially, food costs have increased, coupled with interest rates," Ball said. That makes it hard for some families to defend driving or flying to cottage destinations.