The Royal LePage Winter Recreational Property Report said house prices in the southern Georgian Bay area are expected to rise in 2025 after decreasing last year.
The area includes homes in the Collingwood, Meaford and Thornbury areas, which are close to the popular Blue Mountain Ski Resort.
Royal LePage forecasts that the median price of a single-family detached home in the southern Georgian Bay area will increase 10% in the coming year.
The report said 38% of Royal LePage recreational property experts saw a surge of inquiries from clients when changes to the capital gains tax were announced last year.
Other factors include federal Conservative Leader Pierre Poilievre saying he will reverse the capital gains tax increase if elected, potentially bringing recreational buyers and investors back to the market in 2025.
With interest rates continuing to decrease, recreational homebuyers are expected to return in greater numbers and the Bank of Canada is expected to make another cut to the overnight lending rate next week.
“Looking ahead, we foresee more homebuyers moving off the sidelines as lending rates continue to ease, resulting in a steady increase to recreational prices,” broker Desmond von Teichman, of Royal LePage Locations North, said in a statement.
“Given that inventory levels remain low, I predict an influx of demand could quickly put upward pressure on prices as consumers feel more confident about the trajectory of the market and seek to benefit from lower borrowing costs.”