The allure of the second home has long been an aspiration for Torontonians who long for a place to unwind from the hectic lifestyle of the city. It might not seem like Muskoka and Toronto real estate are connected, yet the two markets have close ties that might not be obvious on the surface. Here’s why Muskoka and Toronto real estate are connected.
The Muskoka Real Estate & Cottage Market
Inventory is up and median prices are down for waterfront properties in Muskoka with a drop of 18 percent year over year. Interestingly, non-waterfront properties rose by 28 per cent bringing it up to $36,000 thanks to low supply. Once again, the inventory issue continues to affect pricing, even 2.5 hours away from the heart of Toronto.
Toronto Success = More Second Home buyers
Toronto money very clearly has an influence on property ownership in Muskoka. When Torontonians are successful, they are earning more and therefore spending more on big ticket items.
Not everyone making a better living will opt to buy a cottage in Muskoka, but it still increases demand as more people can afford to do so.
The Toronto job market is strong and is seeing expansion as more companies are drawn to the city. Tech companies are one of the main industries attracted to the city, and inventory in the commercial real estate sector is seeing change. Toronto is leading the way in the office leasing category when it comes to Canadian cities. It experienced the lowest office vacancies with Vancouver not too far behind. Demand is becoming so high in Toronto that even a whisper new office space is available leads to pre-leasing. This means new jobs are on the horizon.
More Work-From-Home Options & Retirees
Let’s not forget the way people work is changing quickly.
The telecommuting trend is growing. If more people can work from anywhere, many will be able to choose where they live.
Workers close to retiring are also semi-retiring slightly earlier than normal and sometimes working from outside of the city for themselves as consultants or in other occupations that allow remote work. Muskoka is capturing this chunk of folks.
The idea of having no commute and working with a view of a stunning North Ontario backdrop is an appealing lifestyle alternative that will attract more and more people.
You can have a fulfilling career, find affordable living and not really make too much of a sacrifice. Trendy areas like Muskoka offer all the urban living amenities including a vibrant nightlife and fine dining options, at least in the summer.
More employers are becoming more open to the idea of telecommunicating. In 2017, 47 per cent of employees reported they worked from outside their employer’s main offices for half the week or more.
Toronto Real Estate Inventory Shortages
The ongoing issue of inventory of listed homes in Toronto real estate will continue in 2020. Although the move to the suburbs has been the solution for this issue, many Torontonians are watching prices rise while inventory drops. The market is pushing people further out, but that will eventually fuel demand issues in the suburbs.
Toronto was listed as the second most overvalued market in the world on the annual global real estate bubble index. The publishers of the report don’t see this correcting itself any time soon. With growing inventory challenges, this is even more likely to be the case. So, while the suburbs are calling to more Torontonians who dream of home ownership, some are looking for different solutions to their home ownership woes.
Cottages Are a Cheaper Option
For a growing number of people ready to throw their money at a property, the idea of owning a cottage is a new consideration. It’s not just Torontonians either. Two-thirds of Canadian millennials would consider buying a recreational property in the next decade.
As Muskoka cottages see higher sales, it could be because Torontonians are tired of being kept out of the real estate market because Toronto prices are so high.
With extremely affordable options in cottage country available, out of the box thinkers have looked for new opportunities and that has led them to Muskoka. Buyers will get far more home for their money in cottage country when compared to the tiny Toronto condo. And you get a waterfront view, with no fears some builder will block it out with a new condo development in a year.
What you spend on a one-bedroom or studio condo apartment in Toronto will get you a three-bedroom cottage you can enjoy on weekends and vacations. This has many Toronto homebuyers finding the option a no brainer.
Cottages Rising in Value
As demand continues to present problems in Toronto and provides a good reason for more people to buy in cottage country, demand will grow, inventory will drop, and prices will begin to rise. As a result, cottage buyers will see a return on investment that can make it even more worthwhile. As well, cottages not in use during the week can bring in some cash if owners are so inclined to decide to rent them to vacationers. It’s kind of a win-win situation; especially considering how new Toronto regulations are challenging investor’s rights to rent out their condos on sites like Air BnB.
Torontonians Cashing Out
It is not just first-time buyers turning their sights northward. Many Toronto homeowners are looking at the market as a way to make some money. It is not uncommon for homeowners to sell their Toronto properties and purchase a lower-priced, extremely enticing Muskoka property. This trend to cash out is going to continue to impact inventory. Even small numbers of people opting for this idea will be adding more listings in Toronto and decreasing inventory in Muskoka markets.
Renters’ Choice
Many Toronto renters aren’t buying because they have been priced out. Another option? Keep renting a home they like conveniently located in Toronto and buy a cottage as their weekend retreat.
There are many reasons to do this including:
It takes way less time to save for a cottage down payment then it does for a Toronto property
A cottage mortgage payment will then be lower than a Toronto mortgage
Mortgages can be supplemented by renting out the cottage when it is not in use by the owner
Investing in Muskoka real estate gives you the best of both worlds. You have a permanent rental home close to work and a recreational property to go to on weekends and vacations.
As you can see, the Muskoka and Toronto real estate market have many factors connecting them. If you would like more information on how you can take advantage of either or even both markets, speak to our experts today.
MONTREAL – Two Quebec real estate brokers are facing fines and years-long suspensions for submitting bogus offers on homes to drive up prices during the COVID-19 pandemic.
Christine Girouard has been suspended for 14 years and her business partner, Jonathan Dauphinais-Fortin, has been suspended for nine years after Quebec’s authority of real estate brokerage found they used fake bids to get buyers to raise their offers.
Girouard is a well-known broker who previously starred on a Quebec reality show that follows top real estate agents in the province.
She is facing a fine of $50,000, while Dauphinais-Fortin has been fined $10,000.
The two brokers were suspended in May 2023 after La Presse published an article about their practices.
One buyer ended up paying $40,000 more than his initial offer in 2022 after Girouard and Dauphinais-Fortin concocted a second bid on the house he wanted to buy.
This report by The Canadian Press was first published Sept. 11, 2024.
MONTREAL – The Quebec Professional Association of Real Estate Brokers says Montreal-area home sales rose 9.3 per cent in August compared with the same month last year, with levels slightly higher than the historical average for this time of year.
The association says home sales in the region totalled 2,991 for the month, up from 2,737 in August 2023.
The median price for all housing types was up year-over-year, led by a six per cent increase for the price of a plex at $763,000 last month.
The median price for a single-family home rose 5.2 per cent to $590,000 and the median price for a condominium rose 4.4 per cent to $407,100.
QPAREB market analysis director Charles Brant says the strength of the Montreal resale market contrasts with declines in many other Canadian cities struggling with higher levels of household debt, lower savings and diminishing purchasing power.
Active listings for August jumped 18 per cent compared with a year earlier to 17,200, while new listings rose 1.7 per cent to 4,840.
This report by The Canadian Press was first published Sept. 6, 2024.
In the quest to find cities where renters can enjoy the best of all worlds, a recent study analyzed 24 metrics across three key categories—Housing & Economy, Quality of Life, and Community. The study ranked the 100 largest cities in Canada to determine which ones offer the most to their renters.
Here are the top 10 cities that emerged as the best for renters in 2024:
St. John’s, NL
St. John’s, Newfoundland and Labrador, stand out as the top city for renters in Canada for 2024. Known for its vibrant cultural scene, stunning natural beauty, and welcoming community, St. John’s offers an exceptional quality of life. The city boasts affordable housing, a robust economy, and low unemployment rates, making it an attractive option for those seeking a balanced and enriching living experience. Its rich history, picturesque harbour, and dynamic arts scene further enhance its appeal, ensuring that renters can enjoy both comfort and excitement in this charming coastal city.
Sherbrooke, QC
Sherbrooke, Quebec, emerges as a leading city for renters in Canada for 2024, offering a blend of affordability and quality of life. Nestled in the heart of the Eastern Townships, Sherbrooke is known for its picturesque landscapes, vibrant cultural scene, and strong community spirit. The city provides affordable rental options, low living costs, and a thriving local economy, making it an ideal destination for those seeking both comfort and economic stability. With its rich history, numerous parks, and dynamic arts and education sectors, Sherbrooke presents an inviting environment for renters looking for a well-rounded lifestyle.
Québec City, QC
Québec City, the capital of Quebec, stands out as a premier destination for renters in Canada for 2024. Known for its rich history, stunning architecture, and vibrant cultural heritage, this city offers an exceptional quality of life. Renters benefit from affordable housing, excellent public services, and a robust economy. The city’s charming streets, historic sites, and diverse culinary scene provide a unique living experience. With top-notch education institutions, numerous parks, and a strong sense of community, Québec City is an ideal choice for those seeking a dynamic and fulfilling lifestyle.
Trois-Rivières, QC
Trois-Rivières, nestled between Montreal and Quebec City, emerges as a top choice for renters in Canada. This historic city, known for its picturesque riverside views and rich cultural scene, offers an appealing blend of affordability and quality of life. Renters in Trois-Rivières enjoy reasonable housing costs, a low unemployment rate, and a vibrant community atmosphere. The city’s well-preserved historic sites, bustling arts community, and excellent educational institutions make it an attractive destination for those seeking a balanced and enriching lifestyle.
Saguenay, QC
Saguenay, located in the stunning Saguenay–Lac-Saint-Jean region of Quebec, is a prime destination for renters seeking affordable living amidst breathtaking natural beauty. Known for its picturesque fjords and vibrant cultural scene, Saguenay offers residents a high quality of life with lower housing costs compared to major urban centers. The city boasts a strong sense of community, excellent recreational opportunities, and a growing economy. For those looking to combine affordability with a rich cultural and natural environment, Saguenay stands out as an ideal choice.
Granby, QC
Granby, nestled in the heart of Quebec’s Eastern Townships, offers renters a delightful blend of small-town charm and ample opportunities. Known for its beautiful parks, vibrant cultural scene, and family-friendly environment, Granby provides an exceptional quality of life. The city’s affordable housing market and strong sense of community make it an attractive option for those seeking a peaceful yet dynamic place to live. With its renowned zoo, bustling downtown, and numerous outdoor activities, Granby is a hidden gem that caters to a diverse range of lifestyles.
Fredericton, NB
Fredericton, the capital city of New Brunswick, offers renters a harmonious blend of historical charm and modern amenities. Known for its vibrant arts scene, beautiful riverfront, and welcoming community, Fredericton provides an excellent quality of life. The city boasts affordable housing options, scenic parks, and a strong educational presence with institutions like the University of New Brunswick. Its rich cultural heritage, coupled with a thriving local economy, makes Fredericton an attractive destination for those seeking a balanced and fulfilling lifestyle.
Saint John, NB
Saint John, New Brunswick’s largest city, is a coastal gem known for its stunning waterfront and rich heritage. Nestled on the Bay of Fundy, it offers renters an affordable cost of living with a unique blend of historic architecture and modern conveniences. The city’s vibrant uptown area is bustling with shops, restaurants, and cultural attractions, while its scenic parks and outdoor spaces provide ample opportunities for recreation. Saint John’s strong sense of community and economic growth make it an inviting place for those looking to enjoy both urban and natural beauty.
Saint-Hyacinthe, QC
Saint-Hyacinthe, located in the Montérégie region of Quebec, is a vibrant city known for its strong agricultural roots and innovative spirit. Often referred to as the “Agricultural Technopolis,” it is home to numerous research centers and educational institutions. Renters in Saint-Hyacinthe benefit from a high quality of life with access to excellent local amenities, including parks, cultural events, and a thriving local food scene. The city’s affordable housing and close-knit community atmosphere make it an attractive option for those seeking a balanced and enriching lifestyle.
Lévis, QC
Lévis, located on the southern shore of the St. Lawrence River across from Quebec City, offers a unique blend of historical charm and modern conveniences. Known for its picturesque views and well-preserved heritage sites, Lévis is a city where history meets contemporary living. Residents enjoy a high quality of life with excellent public services, green spaces, and cultural activities. The city’s affordable housing options and strong sense of community make it a desirable place for renters looking for both tranquility and easy access to urban amenities.
This category looked at factors such as average rent, housing costs, rental availability, and unemployment rates. Québec stood out with 10 cities ranking at the top, demonstrating strong economic stability and affordable housing options, which are critical for renters looking for cost-effective living conditions.
Québec again led the pack in this category, with five cities in the top 10. Ontario followed closely with three cities. British Columbia excelled in walkability, with four cities achieving the highest walk scores, while Caledon topped the list for its extensive green spaces. These factors contribute significantly to the overall quality of life, making these cities attractive for renters.
Victoria, BC, emerged as the leader in this category due to its rich array of restaurants, museums, and educational institutions, offering a vibrant community life. St. John’s, NL, and Vancouver, BC, also ranked highly. Québec City, QC, and Lévis, QC, scored the highest in life satisfaction, reflecting a strong sense of community and well-being. Additionally, Saskatoon, SK, and Oshawa, ON, were noted for having residents with lower stress levels.
For a comprehensive view of the rankings and detailed interactive visuals, you can visit the full study by Point2Homes.
While no city can provide a perfect living experience for every renter, the cities highlighted in this study come remarkably close by excelling in key areas such as housing affordability, quality of life, and community engagement. These findings offer valuable insights for renters seeking the best places to live in Canada in 2024.
