“Mixed Bag” for Atlantic Canada Recreational Market in 2025

The Atlantic Canada recreational market is expected to see mixed conditions in 2025, according to the REMAX 2025 Cabin & Cottage Trends Report. Favouring sellers this year are Nova Scotia’s South Shore and Newfoundland, where persistent low inventory levels have shifted the market. meanwhile, PEI is experiencing a buyer’s market as tariffs at the local community’s reliance on exports softens demand. Northern Nova Scotia remains balanced as inventory levels rise.

Looking ahead to the remainder of 2025, Newfoundland & Labrador and Northern Nova Scotia are expected to see average price increase by 10 per cent, as demand for recreational properties returns in the summer months. Demand should also pick up on the South Shore, primarily from local and out-of-province buyers alike seeking well-priced waterfront properties. Demand are average prices are expected to hold steady in PEI.

Overall, demand for the Atlantic Canada recreational market is largely driven by local families and retirees, with South Shore and Newfoundland seeing some interest from Ontarians. In Northern Nova Scotia, the provincial deed transfer tax on out-of-province buyers has deterred some buyers from moving forward, but lower pressure on inventory has motivated locals to make the move for either a primary residence or recreational property in the region.

Waterfront properties are in high demand among buyers in the region, with retirees in Nova Scotia also looking for quiet neighbourhoods and good Wi-Fi access as they consider properties that can serve as a primary residence. PEI is also seeing a growing number of buyers considering cottages as primary residences, specifically those who want more space and access to water and parks. In Newfoundland, a quiet and close-knit community is another top consideration, especially for families looking to get away from urban centres in the warmer months.

Similar to other regions across Canada, the Atlantic Canada recreational market was anticipating greater activity with the steady decline in interest rates throughout 2024, but uncertainty around tariffs and the impacts on local industries have made buyers hesitant. In PEI, concern for local tourism, farming and fishing are top of mind, and this is trickling into the housing market. In Nova Scotia and Newfoundland, it is still too early to tell if buyer hesitancy will impact sales, as the cottage season will start once the warmer weather kicks in.

Both Nova Scotia and PEI experience seasonal inland flooding, which is a common consideration for buyers in both provinces. Many local buyers are aware of regions that are at higher risk, and this plays a role in where they start their search for a recreational property.

Atlantic Canada Recreational Market Overview

Northern Nova Scotia Market Overview

With lots of inventory on the market for buyers to pick from, Northern Nova Scotia is experiencing  balanced market conditions. Average recreational sale price across all residential property types increased by 20.1 per cent year-over-year (from $338,170 in Q1 2024 to $406,243 in Q1 2025). Meanwhile, the number of transactions across all property types increased by 40 per cent year-over-year (from 10 in 2024 Q1 to 14 in 2025 Q1). Looking head through 2025, sale prices are expected to rise by 10 per cent by the end of 2025, while the number of sales is also likely to rise, by five per cent.

Northern Nova Scotia is a popular destination for local families and retirees, with Northumberland Strait gaining attention as a recreation hotspot with everything they need – stunning landscapes, water activities, and beaches. Lower interest rates have had positive effects on Canadians eager to get into the recreational property market, with more buyers in Truro choosing to re-enter the market and make a move.  Nova Scotia’s higher deed transfer tax for non-residents has limited buying activity from Canadians out of the province.

The features and amenities most in demand among recreational property buyers in 2025 are waterfront properties and good Wi-Fi access. Turn-key properties are a top choice for buyers who don’t want to worry about upkeep and maintenance. To offset costs on generate additional income, some owners and buyers are looking to rent out the property during the warmer months as locals and Canadians out-of-province look for a close to home summer getaway.

For many families, a recreation property holds deeper meaning – a part of their family’s legacy, with the hopes of passing it down to children and grandchildren as treasured spaces to preserve, enjoy, and care for in the future.

Buying Advice:

Low interest rates and rising inventory levels make now a great time to buy in Northern Nova Scotia. Working with an experienced realtor can help make this process much easier, with a wealth of valuable guidance and insights from their knowledge of local regulations to community dynamics and weather. These insights are crucial to have when buying a property, you intent to stay in for years to come and are part of well-informed decisions.

South Shore Nova Scotia Market Overview

South Shore is experiencing a seller’s market due to very limited inventory supply and increasing demand. While the foreign buyer ban has not directly affected buyer’s behaviour, this may have more to do with the isolated nature of the region rather than rules or migration patterns. Lower interest rates are enticing local and out of province buyers, especially those looking for relatively cheaper markets in remote areas where being near fresh water is a priority.

Average recreational sale price across all residential property types, decreased by 1% per cent year-over-year (from $123,125 in Q1 2024 to $116,875 in Q1 2025). The number of transactions across all recreational property types held steady year-over-year. Amid lower interest rates and buyer incentives, both average sale prices and number of sales are expected to increase slightly by the end of 2025, with more buyers wanting to enter the market and explore available options.

Waterfront properties in the region are in high demand with both local and out-of-province buyers looking for their first or next “home away from home” in a peaceful community with little to no noise and beautiful views. When the property is priced competitively, days on the market are low, so interested buyers shouldn’t wait too long before deciding. Cottage and cabin sales are being driven by families, retirees and out-of-province buyers. However, most of the recreational property buyers in the region are local. These activities are all consistent with 2024, nothing unusual or different.

The features and amenities most in demand among residential property buyers in 2024 are:

• Waterfront properties
• Good Wi-Fi access
• Quiet neighbourhood

As we move into the spring and summer markets, lower interest rates are helping motivate recreational buyers to re-enter the market. There are no new barriers currently for purchasing in the market, but consumers are worried and cautious of what is to come with regards to economic uncertainty driven by U.S. tariffs. It’s too early to tell right now whether these external factors will impact the market in the region.

Buyers are not choosing to purchase cottages with the intention of using them as rental properties. It’s for their use and enjoyment. Since demand is mainly being driven by retirees and families, there remains a strong motivation in passing their cottage down to future generations who might not be able to easily afford them on their own. Buyers are looking at both turn-key cottages and cottages that can be renovated, preference for either is dependent on the buyer’s goals and experience. Buyers getting close to retirement are looking for primary residences in a recreational area.

With colder temperatures during off seasons and properties being in close proximity to water, there are concerns from homebuyers/sellers regarding climate events around flooding and leakage.

Buying Advice:

Homebuyers need to take the time to understand the market so they can get a better sense of what they are buying and how it will help them achieve their goals. It’s a big decision to make. Also, there are restrictions that exist on short term rentals that can change at any time. It’s important to seek support from a professional to make better decisions and to become more attuned to any risks that they may not be aware of otherwise.

Prince Edward Island Market Overview

PEI is experiencing a buyer’s market due to the relative instability in the local economy that relies heavily on exports for major industries, including construction of homes.

Average recreational sale price across all residential property types, increased by 43.8per cent year-over-year (from $365,000 in Q1 2024 to $525,000 in Q1 2025).

Average number of transactions across all recreational property types increased by six per cent year-over-year (from 33 in 2024 Q1 to 35 in 2025 Q1).

The prices of properties close to water, including waterview, waterfront and those bordering on park systems are expected to remain steady, and the sales of these properties are anticipated to increase by two per cent through the end of 2025.

Waterfront properties in the region are seeing steady demand with a focus on year-round homes that are close to water or recreational parks. These buyers are looking for their first or next “home away from home” in a peaceful community with little to no noise, and a property that fits their change in lifestyle. Families and young and middle-aged couples are driving the sales in the region; this trend has remained steady year-over-year.

There is underlying uncertainty amid potential U.S. tariffs making construction materials more expensive. In addition, PEI has a large farming and fishing industry, not to mention that tourism revenue is a significant contributor to the local economy. Many are wondering how these events will affect their ability to live, resulting in tighter purchasing decisions.

The features and amenities most in demand among residential property buyers in 2025 are:

• Larger properties with more outdoor/green space
• Waterfront properties
• Access to recreational activities (I.e. skiing, water sports)
• Larger living spaces with home offices and gyms

As we move into the spring and summer markets, there are a few very hot areas that have been desirable for some time now. These areas include Stanhope, Grand Tracadie, Rustico and Cymbria, which are quite competitive. Some recreational buyers want to purchase cottages with the intent of using them as rental properties, but a lot are seeking to buy more out-of-town properties as these can offer more space, closer proximity to water and parks, and overall better recreational satisfaction.

Buyers are looking at both turn-key cottages and cottages that can be renovated, preference for either depends mainly on price, as well as the buyer’s goals and experience. If the buyer’s budget allows for a turnkey property, that’s what they’ll go with.

With colder temperatures during off seasons and properties being near water, there may be concerns from some homebuyers/sellers regarding climate events, around flooding and erosion. The region does have a report that is regularly referenced regarding flood plains and erosion.

Buying Advice:

The recreational property market is a good market to get into before the spring and summer seasons, during “cooling” periods when buyer activity tends to be a little quieter and not as competitive. In addition, there are some areas that do not allow short term rentals. There is legislation for lands protection for non-residents looking to buy property on PEI.

Newfoundland & Labrador Market Overview

Despite a year-over-year decrease in recreational sale price, leading to a sellers market, Newfoundland and Labrador could easily swing to a seller’s market due to lower supply and an increase in out-of-province buyers, particularly families. These regions offer a quiet and close-knit community with scenic oceanic views. The market is increasingly competitive with recreational properties for local buyers. As the economy stabilizes and buyer confidence returns, the market could see an increase of recreational sales by 10 per cent through the remaining of 2025.

Average recreational sale price across all residential property types decreased by four per cent year-over-year (from $209,952 in Q1 2024 to $198,710 in Q1 2025). The number of transactions across all recreational property types decreased 4.8 per cent year-over-year (from 21 in 2024 Q1 to 20 in 2025 Q1). Looking ahead through the end of 2025, given the smaller size of this market, the number of sales transactions is expected to remain the same as properties transfer ownership and consider the coastal landscape properties.

Waterfront properties remain in high-demand for both local and out-of-province buyers, particularly those with families. With an increase in Canadians choosing to travel within Canada, they might be drawn into the close-knit communities and quiet neighbourhoods of Newfoundland and Labrador. There are still many locals looking to discover their own oceanic sanctuary and contributing heavily to demand in the market.

Lower interest rates are encouraging buyers to re-enter the market with some focusing their sights on emerging communities, like a small cottage (800 sq. ft.) subdivision just 45 minutes outside of St. John’s offering an affordable entry point with listings around $325, 000. This quick escape outside of a city-centre helps drive interest.

Property ownership (including primary and recreational) remains top of mind for families in Newfoundland and Labrador as many Canadians prioritize home ownership as a longterm investment. Some buyers are purchasing luxury waterfront residences to be used as short-term rental properties.

Most regional buyers are looking for turn-key properties as they seek a sanctuary they can run to for rest and relaxation. They want to escape the demands of every day to feel restored and a recreational property is that.

Buying Advice:

When looking to buy recreational property, as with any property, it’s important to do market research about the areas you’re interested in as well as consult a professional realtor who can help guide you, especially if you’re not local to the area.