April 5, 2010
While I had to resort to enjoying the warm weather in parks around the city and on Centre Island this past weekend, cottage country owners were probably eager to get up North to enjoy their properties earlier in the season.
And the weather wasn’t the only good news for cottage owners. It seems like cottage sales are back on the upswing. The first quarter of 2010 saw sales increase 40% over the first quarter of 2009. The great weather almost definitely helped to improve these numbers over last year.
Dollar volume was also up by 46 per cent, representing more than $78 million worth of transactions. But last year also represented the depths of the market, when buyers sealed their wallets. Yourhome.ca
Cottages tend to be one of the first markets to feel the hit of a recession as they represent a complete luxury good. On the flip side, they usually are a leading indicator for economic recovery.
Despite this good news, however, the market might not ever return to “normal”. The middle class is shrinking and, in general, money is tighter across the board.
So we might have seen the peak of cottage country for now. But if these rebounding numbers continue, that might not be the case.