Eastern Beaches Real Estate Trends
As I wake up on this beautiful Fall morning at Hillside Beach, I reflect on the Summer we just had and the growth of the Eastern Beaches area over the past 5 years. When Covid-19 first hit in early 2020, who could have guessed the impact it would have on real estate values, especially cottage properties. I would have thought cottage sales would slow dramatically because of public health orders restricting the operation of businesses, and many individuals facing temporary or permanent unemployment. To the surprise of many, exactly the opposite happened! Travel restrictions and record low interest rates redirected Manitobans on vacation properties much closer to home, translating to record sales in the local Eastern Beaches market.
For example, vacant land sales were very stagnant before the pandemic with many cottage developments having little to no activity. Vacant Land sales grew largely in 2020, 2021 and 2022. Vacant land sales are healthy for our community. New construction brings new families to the area, who in turn shop at the local stores and eat at the local restaurants. They also stimulate activity for the local trades (carpenters, plumbers, electricians, septic services, etc.) and increase the tax base for local improvements. The MLS sales of properties with homes or cottages followed the same trend.
Not only did the East Beaches market see an increase in the quantity of sales, but with low supply and high demand, the sales prices of properties also increased from 2019 to 2021. Since the beginning of 2022, there have been multiple interest rate increases, and we are now seeing a plateau of property values due to lower demand. While lake front properties have maintained their top values from COVID years some back lots have seen decreases.
I do not sell real estate; I analyze real estate transactions. An appraisal is a comprehensive report done for financing, division of assets, investment analysis, and estates. Questions I hear frequently from residents of the Eastern Beaches are about capital gains. Examples such as, “How is capital gains calculated if I sell?” and “If I transfer the cottage to my children, how does this effect my capital gains?” Read more specific information I have gathered on capital gains and cottage disposition. While each situation is unique, you will likely need a property appraisal, but you will also want to consult an Accountant to discuss your best approach. Read more about capital gains.
Generally, my fees for an appraisal in the Eastern Beaches ranges from $450 plus GST to $650 plus GST but there are complex situations where the fee may go above this. Contact me today if you want a fee quote for an appraisal on your property.