EDMONTON -- The ongoing COVID-19 pandemic is driving a shift in home buyer motivation, resulting in a surge of interest in rural and cottage real estate, according to experts.
While provincial migration has been on the rise, especially in regions like Toronto where affordability has been impacted over the last several years, the shift to remote work and changing social attitudes due to the pandemic have furthered that trend in recent months.
“The motivation of buyers is different this year,” real estate expert Odeen Eccleston told CTV’s Your Morning Tuesday.
“The pandemic has created additional motivation for people living in pricier and more population dense areas to perhaps move further away from the hustle and bustle because they’ve been given permission to spend less time commuting and more time with family by working from home.”
According to a recent market report released by Royal LePage, the average unit price in Ontario's Muskoka cottage region increased 15 per cent year-over-year between Jan. 1 to May 31, 2020.
Realtors in the region have reported record sales, with 278 cottage properties sold in the last month -- a 73 per cent increase year-over-year -- and a significant increase in interest from city dwellers who are ready to trade in the city for rural living.
“This pandemic has caused a lot of people to re-examine their priorities,” Eccleston said. “And because of these re-evaluations, the market has perhaps changed in some ways forever within Canada and the world.”
And, as more employers embrace the long-term shift to remote work, Eccleston says we can expect to see more city dwellers making moves.
“This enables people to live anywhere they want—and many are opting for waterfront cabins, cottages, and chalets,” she said.
Eccleston notes that lower interest rates are driving home buyer interest in these regions, which help to fuel property prices.
“With lower interest rates here in Canada, consumer confidence is at an all-time high. And with increased demand and lower supply we get higher prices, and that’s certainly the case in the cottage market,” she added.
