The Cottage market in 2007
With the active spring market fast approaching, some Canadians are turning their thoughts to the cottage market. This year is shaping up to be another good year for real estate in general, with the cottage market expected be particularly hot as the demand for these sought-after properties continues to spiral upward.
Here are some factors that will have an impact on the cottage market this year:
- Availability: There's only so much suitable cottage property to go around, especially waterfront property, so these lots will continue to be in high demand. Enterprising developers are recognizing this fact and in recent years, there's been an upsurge in condominium developments in cottage country. This may be a viable option for many buyers looking for water access and docking facilities without the high price tag and maintenance required for traditional cottage properties. Look for this trend to continue as new developments with luxury amenities meet the growing demand.
- Location: A property's proximity to major metropolitan centers is a major factor in a cottage's value. With gas prices reaching all-time highs and an aging population, a long and difficult commute isn't going to become any more appealing in 2007. However, planned highway extensions or road improvements could shorten the drive and have a major impact on future resale values. Make sure you ask your Coldwell Banker professional what road improvements may be coming into any area that you're considering. If you concentrate your search there, you'll improve your chances of getting good value for your investment.
- Buyer demand: Demand for cottage properties will continue to outstrip the inventory of listings in 2007. With ‘baby boomers' inheriting their parents' wealth and paying off their home mortgages, there's a growing market for second properties all across the country. And those that are fortunate enough to have a cottage property generally aren't selling, at least not in the numbers that would be required to meet demand. This high demand and limited inventory will continue to drive prices up in 2007.
If you're thinking of buying a cottage in 2007, you should begin your search now. The sooner you're into the market, the better your chances to scoop up a viable property before you're competing against other buyers. Your local Coldwell Banker representative has contacts in resort communities across the country, and can connect you with a cottage property expert to help you realize your dream of a vacation home for you and your family.
