"The entire summer is slow to get moving -- things are just getting going now," says Duncan Carmichael, a recreational property realtor in Kenora. "There are as many buyers out there, but not quite the same crush as we usually have in the spring."
Although the cottage market was slow getting started, Carmichael says the real estate business is heating up as the mercury rises.
"The cottage market remains strong and active," he says. "There is a decent inventory, but we are always waiting for more."
What hasn't put a dent in the cottage market is the high price of gas. Carmichael says there was a rumour floating around that 20 per cent of cottagers were selling their summer places due to the high price of gas. But he's says that is absolutely wrong.
"The lifestyle out here is just so enjoyed, people aren't letting the price of fuel alter that lifestyle," Carmichael contends.
The contentious figure comes from the 2008 Royal LePage Recreational Property Report. According to the survey, released at the end of June, the lure of cottage country does continue to trump gas prices. However, it also noted that 19 per cent of cottage owners surveyed said they would consider selling their properties if gas prices continue to rise. About 33 per cent said rising gas prices would have an impact on the number of trips they make to the cottage this summer.
"We are not seeing that in the least. People are coming down here now steady," Carmichael says emphatically.
Even without the price of gas, it can cost a pretty penny to buy your own place in paradise. Though cottage prices are pretty much on par with last year, they are still up there. To be on the mainland at Lake of the Woods, you're looking at a starting point of about $400,000. An island property on Lake of the Woods runs a bit less at $250,000 and up. Properties on smaller lakes go for about $275,000 and higher. Note the "and higher." Carmichael expects to have sales topping the $2-million mark in no time, as he already has buyers prepared to spend that amount.
Closer to the city, in the Eastern Beaches area of Lake Winnipeg from Patricia Beach to Victoria Beach, cottage prices range from less than $70,000 for back-lot properties to $600,000 and higher. Lakefront cottages appear to range from $160,000 to $600,000. A good number of year-round cottages are available, starting in the $129,000 range.
"There is a real broad range appeal," Carmichael says of the cottage market around Kenora. "People are looking at year-round recreation and there's an even greater draw."
While the baby boomers continue to represent the most significant portion of the market, Carmichael says people in their 40s and early 50s who have done really well in their careers are also looking at investing in cottage properties at Lake of the Woods. What has dropped is the buying influence from the U.S. Carmichael says the number of prospective cottage buyers from south of the border has been tempered due to the drop in value of the U.S. dollar.
Lake of the Woods isn't the only cottage area in high demand. Paul Duncan, a realtor with Sigmar Mackenzie, who lives and works in the Whiteshell, says he's as busy as ever now that summer has finally arrived.
"Weather plays an important role in cottage country," he says. "But there is always a demand for cottages in the Whiteshell."
Cottage prices in the Whiteshell are quite variable, depending where you are on the lake and which lake you're on, Duncan points out. For a property right on the water on a small lake, you can expect to pay from $200,000 and up. A property off a smaller lake starts at about $140,000. Cottages on Falcon Lake and West Hawk Lake run much higher. But if you want to be in a more remote area, Duncan says there are still cottages to be had in the northern Whiteshell for about $100,000.
Properties in the Whiteshell draw a wide range of buyers, Duncan says. There are people who are looking now, but planning to move out to the lake when they retire. Younger families who have paid off their homes in the city are also now looking for a cottage property.
Perhaps the most interesting phenomenon is the number of people from Alberta inquiring about buying cottage properties in the Whiteshell. Duncan says he's getting numerous calls from former Manitobans who live in Alberta, but want to buy a cottage in Manitoba. Many of them grew up going to the Whiteshell and now want to own their own vacation spot. Duncan says they're finding prices here quite reasonable compared to those in nearby B.C.
The other trend is that people are going all out when it comes to building their dream spot at the lake. Not only are they paying top dollar to get their own cottage, Duncan says once they buy a place, they are investing a lot of money in their cottage for the future.
"Contractors throughout the park are very busy," Duncan says. "There are a lot of big cottages being built."
What's Hot:
Top 10 most important recreational property features:
1. Pristine waterfront
2. Four-season capability
3. Low maintenance
4. Proximity to primary residence
5. Surrounding amenities (restaurants, stores, etc.)
6. Number of bedrooms
7. Large kitchen
8. High-end amenities
9. Great room
10. Wine cellar
