Resale Homes

Resale Homes

It's cold in cottage country, but realtors still busy

What a summer it has been! After coming back from spending two weeks at the lake last week, in the cold and wet, I feel a tad cheated. (OK, make that a lot!) But I am not alone. The cold, wet weather we've been experiencing for most of the summer has put a damper on all kinds of things, including seasonal businesses.

What about the cottage market? According to Chris Clark, a broker with Cabin Country Realty Ltd. in Kenora, they are busy this summer. People are still coming out for showings to see properties on Lake of the Woods and the surrounding areas, such as the Winnipeg River and many smaller lakes. But what's different this year is that people may still be looking, but they aren't buying.

"The sense of buyer urgency just isn't there," explains Clark. "People are looking but they are not committing."

That's due to two main factors, as Clark sees it. The weather has definitely had an impact on vacation property sales. There have been a lot of cancelled showings simply due to weather.

The other factor that's been at play in the Lake of the Woods market is the economy. Back in the fall last year, Clark says they knew they were in for a good 12 to 18 months of slow sales as a result of the economic downturn. While Manitoba may not have been as affected by the recession as other provinces, Clark says buyers are still wary.

Despite the economic downturn and slow sales, the high prices in cottage country, particularly Lake of the Woods, haven't changed. But, at the same time, people are not willing to pay much more than a property is worth. Clark says sellers have to adjust their price expectations.

"It's more of a balanced market," he explains. There is good selection of inventory with cottages and lots in a variety of price ranges available. But again, Clark says while people are looking, they just aren't buying like they have in the past.

That sense of buyer urgency is also down in the beaches area, says Judy Calvert-Pierce of Beaches Realty Ltd, who sells properties in the Lake Winnipeg areas. People are buying but not as quickly as they might have in previous years. But there is one exception. Properties right on the lake are highly sought after and don't stay on the market long. Late last week, for example, Calvert-Pierce wrote three offers in one day and they were all lakefront properties.

Despite the slowdown in buyer urgency, Calvert-Pierce says 2009 is still destined to be another record-breaking year for her company. Market values continue to be stable and, in fact, prices have actually gone up a bit.

"The market has been fabulous for us again this year," she says. "There are more properties on the market and higher-priced properties on the market."

Calvert-Pierce says people of all ages are buying cottage properties and from all over the place. She sold properties to people from France and a woman who lives in Saudi Arabia, not to mention dozens of Winnipeggers wanting their own cottage retreat. The fact that the beaches area is so close to the city is a big draw.

Cottage properties in the Whiteshell are also selling well. Paul Duncan of Sigmar MacKenzie Real Estate Services, who sells properties in the Whiteshell area including summer hot spots like Falcon Lake and West Hawk as well as all of the smaller lakes, has sold 26 of the 41 properties sold this year in the Whiteshell Provincial Park.

"It's busy," says Duncan. "The weather has not held people back."

The lowest-priced sale so far this year has been a cottage on a back lot that sold for about $140,000. On the other end, the highest-priced sale this summer was a cottage for $650,000. Duncan says cottage prices have held steady for about the last three years.

"Properties that are listed at market value are selling," Duncan explains. "But cottages that have an inflated price are sitting."

Buyers are looking at cottage properties across the spectrum, with showings in every segment of the market. Duncan currently has an executive cottage at Falcon Lake listed for $940,000 and while it has not sold yet, he says he has already had several showings with interested buyers.

"It's been a busy summer," says Duncan. "Even with the weather, I'm still running."

Around the Market / Tracey Thompson
August 16