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That’s despite the upswing that was expected in the real estate market when the Bank of Canada began cutting interest rates last year.

“There’s got to be some clarity — whether that be a tariff pullback or a trade deal,” said Samantha Villiard, regional vice-president of Re/Max Canada. “If any of those things materialize, that’s what’s going to shift it. We’re really at a pause until that happens.”

Nationally, brokers and agents with the real estate franchise expect recreational property prices to rise 1.8 per cent this year, the report said. 

According to a Leger survey commissioned by Re/Max, nearly 20 per cent of Canadians who are now less confident in the housing market than they were last year said they’re holding on buying or selling until they have more clarity.

The survey also found more than half of Canadians believe “affordable purchase price” for a recreational property is a must-have.

Additionally, 34 per cent of Canadians considering buying a cabin or cottage in the next year or two see a recreational property as a good investment, but new short-term rental rules in some markets have influenced about 20 per cent of recreational property owners ready to sell within the next two years.

In Ontario, the market outlook varies from region to region. Prices are expected to rise in 60 per cent of regions as pent-up demand “will place additional pressure on existing inventory” while 40 per cent of regions are expected to see prices decline amid steady inventory and more listings on the market in the warmer months.

Already, prices have declined between one and 20.3 per cent in regions including Niagara-on-the-Lake, Peterborough County, Northwestern Ontario, Orillia, and Grand Bend, the report added, “largely due to increases in available inventory.”

That increase in inventory is a result of more families selling their existing cottages due to estate plans or because the younger generations are not looking to take over the property, Villard explained.

Re/Max agents and brokers have noticed “a bit of a pause and a dip” in regions neighbouring the U.S. border in particular, like Niagara-on-the-Lake, Villiard said.

The report noted, however, that despite travel south of the border waning, “the region is still expected to see strong demand as buyers look to enjoy other attractions in Ontario’s wine country.”

It added that “as Canadians continue to show their love for local,” there’s potential for demand to increase as more people look to “staycation.”

In northwestern Ontario, inventory remains low and buyers are pausing on any decisions until economic conditions improve, the report said.

Overall, families, GTA retirees and locals are the buyers driving the demand across the province, but northwestern Ontario is getting attention from “out-of-province buyers who moved out of Ontario and are now returning to communities that are familiar to them.”

The report added that cottages aren’t purely seasonal homes. Many regions in the province, such as Prince Edward County and Niagara-on-the-Lake, are comprised of mostly primary residences, and about half of Ontario’s cottage markets are gaining more interest from families looking for a primary residence as affordability challenges take them out of urban centres.