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The Re/Max Canada report is based on a Leger survey commissioned in March that said lower borrowing costs and increased affordability in the entertainment market last year have prompted interest from potential buyers.
But this is now overshadowed by economic uncertainty, responding to the ongoing U.S.-Canada trade war in recent months, which has put the national housing market in a dilemma.
According to the survey, 59% of people whose housing options are affected by recent tariffs show that they are less confident in the entertainment market than in 2024.
“When they started these trade discussions, the market situation really took a hit,” Re/Max Canada president Don Kottick said in an interview.
But he did not rule out a quick turnaround, saying that if Canada reached a new trade agreement with its southern neighbors, the market could open quickly.
“I think the underlying desire is there. The general consensus is that desire doesn’t go away,” he said.
“Casual buyers are temporarily off the market while awaiting further clarity or signs of economic stability.”
While unit sales are not expected to decline year-on-year in most entertainment markets in Canada, activity is expected to range from flat to 10%.
The report says RE/MAX brokers and agents expect the national average price of the Canadian leisure market to be about 1.8% in 2025.
In Canadians’ confidence in the housing market is not as good as in 2024, 19% said they have been holding on to the sale due to the tariff threat until further clarity is made.
In Ontario, the markets were “more or less paused” as buyers and sellers focused on employment and other economic indicators, the report said.
Among all the regions analyzed, the year-on-year price of the Ontario bungalow market fell, down about 1% to 20%, including Niagara on Niagara, Peterborough County, Northwest Ontario, Orillia and Granburn, mainly due to increased inventory.
The price increase in the remaining 50% of the Ontario cabin market reflects the tight stock levels of inventory levels in Simcoe County, Lake Kavata, Greater Sudbury and Prince Edward counties.
According to the report, the average price of the British Columbian leisure market is expected to rise by 1.1% in 2025 due to balanced market conditions.
“I think we can assume Canadians are more cautious,” said Carrie Lysenko, CEO of online real estate agent Zoocasa.
“We’re seeing a lot of volatility.”
But some popular cottage destinations, such as the Muskoka region of Ontario, are more “immune” to volatility in overall economic and real estate trends, as they benefit from “different buyers.”
“Maskoka is known as the Hamptons in the north. I hope to have such a high property in these areas,” she said.
“These are not first-time home buyers. These are higher net worth individuals looking for secondary or tertiary properties that they may enjoy for themselves or for rent.”
The reason for optimism is that other secondary markets in Canada will also rise, she said.
A Zoocasa analysis earlier this month said tariffs prompted Canadians to return from U.S. real estate, including warm resorts and secondary homes in resort markets.
It said Canadians accounted for the largest share of foreign buyers in the U.S. last year, with an average purchase price of about $834,000, and domestic purchases could increase with lower interest rates in the South.
“It can be more affordable and more attractive when we consider how far your dollar can go in the U.S. rather than buying secondary and vacation properties in Canada,” Lysenko said.
“This could put more pressure on some of these resorts, such as Whistler, perhaps part of Vancouver Island.”
The Re/Max report also said that as Canadians move to U.S. travel plans, comparing the situation with the increase in local tourism seen during the pandemic, Canada’s bungalow countries may have hope.
But it said affordability will remain a key factor for potential buyers, with 57% of survey respondents identifying it as a must-have.
“It’s actually based on disposable income,” Kottick said.
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Last modified: May 19, 2025
