Cottage Market Standstill, US Investment Exodus, & Interest Rate Forecasts

Market Transformation: The Ontario cottage market is experiencing significant price drops (up to 20.3%) amid increasing inventory and cooling demand, while Canadian investors are withdrawing from U.S. real estate investments with potential for $650+ million flowing back into Canadian markets.

Economic Uncertainty: Major Canadian banks have widely divergent forecasts for Bank of Canada's next moves, with some predicting no rate cuts in 2025 while others expect cuts of 75 basis points by early 2026, as Toronto's mortgage delinquencies have tripled to a 12-year high.

Regional Rental Landscape: Canada's provincial rent control policies vary dramatically in 2025, from Ontario's 2.5% cap to completely uncapped increases in Prairie provinces, creating different investment opportunities and challenges across the country.