In the ‘easy-money’ ultra-low rate era, there was a lot of demand from secondary property owners for recreation or renting to others. Most were over the age of 50. An increasing number will look to sell to lower overhead/upkeep and free up cash flow in retirement.
The good news is that this will continue to increase the supply of properties in many areas and help deflate the price bubble that made housing unaffordable. The bad news is that many sellers who bought, renovated or refinanced near the bubble peak face losses.
The next time someone says, ‘You never lose money in real estate,’ tell them that’s nonsense and not supported by history. Realism informed by math is rare and valuable. See, They bought cottages during the pandemic real estate rush, now they’re losing when they sell:
A flood of buyers from cities pocketed recreational properties in cottage country all over the province, pushing prices to unseen heights. Now, after interest rates doubled, those pandemic buyers are trying to off-load their properties, and many are struggling to break even.
Across Ontario, the median loss for properties purchased in 2022 and 2023 and then subsequently sold was $45,000. In the GTA, the median loss was higher at $56,000. However, Muskoka experienced a median loss of $240,000 (although the volume of transactions was relatively low), according to a first-quarter 2025 report from Teranet, a real estate registry services company.
“During the pandemic, it was basically free money and it was easier to qualify for a secondary property,” Blenkarn said. “This is the fallout of that initial rush into the cottage market.”
Mean-reverting price pressures are not just in Ontario.
Investors are missing in both Vancouver and Toronto’s Condo markets for many reasons, contributing to Canada’s housing crisis in 2025. Join me together with other experts as we discuss this ongoing downturn trend with new listings piling up and the sentiments of buyers and sellers in the market. Here is a direct video link.
More than 2,000 new condos in Metro Vancouver are sitting unsold and empty despite an ongoing housing crisis and steep rental prices, according to a recent report. Here is a direct video link.
CNBC’s Diana Olick joins ‘The Exchange’ to discuss the surge in supply of homes in the U.S. Here is a direct video link.
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