A large cottage stands on Lake Rosseau in Muskoka, Ontario.James MacDonald/Bloomberg
Robin and John Steckley have long wanted to purchase a waterfront cottage in the picturesque Kawartha Lakes area, not far from Stouffville, Ont., where their family used to live.
When their two children were young, the family owned a trailer in the area, near Pigeon Lake, and spent many summers there. By the time the kids grew up, the Steckleys sold the trailer, but always had plans in the back of their minds to buy property in the area.
After living and working in Virginia the past five years, the Steckleys decided that with the Canadian dollar sitting well below its American counterpart, it was time to make the leap and purchase a cottage in their home country.
"We knew we were going to buy in the Kawarthas at some point," Ms. Steckley said. "The dollar just defined the timing of that purchase."
The Steckleys have a conditional offer on a small cottage on Chandos Lake near the town of Apsley in the Kawarthas, about 45 minutes north of Peterborough. The couple and their two children agreed the cottage met all their requirements – right on the lake, complete with a dock and good swimming area, and "absolutely adorable and beautiful," Ms. Steckley said.
The low Canadian dollar, combined with historically low interest rates, is having a positive impact on the recreational property market, according to a recent survey of Re/Max agents and brokers across the country.
The survey found Canadians – particularly retirees – are fuelling demand in the recreational property market, with many selling properties abroad and opting to instead purchase closer to home. About 83 per cent of recreational property markets surveyed across Canada reported retirees as the key drivers of demand, while 53 per cent of the areas surveyed saw an increase in retiree purchases this year.
U.S. buyers such as the Steckleys are also increasingly turning to Canada's cottage country for their second home.
Gail Burton, a Royal LePage agent who helped the Steckleys find their new cottage, said she's seen a bump over the past year in foreign buyers looking at purchasing a recreational cottage.
"The people that we worked with have long wanted to buy a vacation property here in Canada, but they're also realizing that they're saving a lot of money by using their European or American currency to purchase a home," Ms. Burton said. "It's a bonus that the dollar here is low."
Ms. Burton has also noticed many retirees from the Toronto area opting to cash in on the hot real estate market and purchase a recreational property outside the city.
"I think more retirees are looking at Canada through more practical eyes," says Re/Max North America chief executive officer Pamela Alexander. "Many of them have done well in their first-home market that has been generally healthy for a long time."
The 1990s saw a large influx of foreign buyers in Canada's cottage country after the dollar dipped as low as 62 cents (U.S.). Whether the same thing happens this year will depend largely on the direction of the North American economy in the coming year, Ms. Alexander said.
"The U.S. economy is still coming out of turmoil and still recovering. I think we're going to see more interest in the recreational market, depending on where the Canadian dollar settles and where the American economy settles," she said.
In the meantime, the Steckleys are looking forward to enjoying the perks of their purchase.
"We're excited to have a place in Canada again that we can come home to, spend time with our adult children and enjoy the area," Ms. Steckley said.