Muskoka has become a hot spot and not just for the summer. According to The Canadian Real Estate Association, waterfront sales had a 110% increase since last year. Thus, totalling a record of 922 units over the first five months in 2021. Specifically, Muskoka is transforming into Ontario’s Hamptons.“This is very new for the cottage real estate market” says RE/MAX Escarpment’s leader Rob Golfi, “Muskoka is becoming a prestigious area like the Hamptons.”
Space is the new luxury when it comes to living since Covid-19 hit. During the pandemic, 29% of Canadians are discovering that they need more space and 40% of Canadians are realizing that their homes need renovations. Statistics Canada found that there were 6.8 million Canadians working from home in 2020. This is nearly 40% of Canada’s workforce. People have become accustomed to zoom meetings and walking their dog on their lunch breaks. Currently, 3.1 million Canadians are continuing to work from home in 2021. Companies are predicting that majority will continue to do so even when the pandemic is a distant memory.
Likewise, city lovers are rapidly losing their adoration for living a busy city life. Instead, people are turning to an alternative lifestyle away from dense areas. Leaving the city and moving to cottage country is trending this year. Certainly, Muskoka is transforming into Ontario’s Hamptons. Waterfront property prices have increased by 33% in the last year. The pandemic is encouraging people to reassess their living situation and a vast majority are making the leap to a more peaceful environment. The average waterfront price in Muskoka jumped from $1.1 million to $1.5 million.
Ultimately, Muskoka is transforming into Ontario’s version of Long Island’s the Hamptons. The Hamptons are known as the summer spot for New York City residents. Surprisingly, both real estate markets were shocked to see the largest increase of new listings. Realtors have been in awe at the bidding wars on properties that have been listed for years. The Hamptons real estate market had seen a 40% increase in the average sale price. This is almost identical to Muskoka’s residential sale price that increased by 41%. Even though vacation homes normally have a longer listing period, “we are now are seeing multiple bidding wars on cottage properties becoming the new norm” says Golfi. “Properties in Muskoka that would take months to sell are now being sold within days,” says Golfi.
Nonetheless, the pandemic has changed the vacation real estate market. Properties that are selling in hours of being listed is new for up-north. There is no surprise when 50,000 residents have picked up and left the city to find a place to call home in the tranquil region of Northern Ontario.