According to the 2008 Re/Max recreational property report, more and more baby boomers are retiring to Muskoka. Prices may be peaking here but many first-time buyers are looking to Parry Sound and the French River for their piece of paradise.

After years of strong activity, demand for recreational properties has moderated in Parry Sound. Affordability continues to be an issue where the price of a three-bedroom, winterized recreational property on a 100 ft. waterfront lot will start at $180,000 and seasonal product on a similar lot will cost about $150,000. Sales are strongest for product priced under $325,000, which is driven by two major buyers — young couples looking for entry-level product such as three-season properties with water access, and older empty nesters and retirees who are seeking more of the creature comforts in recreational properties.

American recreational property owners are taking advantage of parity and selling this year. Lakes Whitestone and Manitouwabing, as well as Georgian Bay, are most popular with purchasers.

The trend to purchase with retirement in mind continues, particularly with baby boomers planning to retire in coming years. The abundance of product available for sale marks the first time in recent years that buyers have had choice.

Prices have clearly reached their peak, with the most expensive sale in the area so far this year priced at $895,000, and the most expensive listing at $22 million — a property that consists of 2,400 acres abutting Massasauga Provincial Park. The least expensive sale this year was under $100,000 while the lowest currently listed property for sale is a riverfront property for $120,000 on the French River.

In the Huntsville and Lake of Bays area buyers are back in the driver’s seat. Sales in the first quarter of 2008 were softer than in years past, with the number of recreational properties sold on par with 2007 levels in Huntsville but down 18 per cent in the Lake of Bays area.

Affordability is at its best level in recent years, with a typical three-bedroom, winterized recreational property on a standard-sized waterfront lot starting at $299,000 in Huntsville and Lake of Bays. Those seeking more affordable alternatives may want to look at similar homes on deeded water access or riverfront in Huntsville starting at $200,000, or water access on Lake of Bays starting at $105,000.

The most active price range is $260,000 to $350,000, driven primarily by baby boomers looking for recreational properties that they can retire to within the next five years. Generation X is also active in the marketplace. Lake Vernon, Fairy Lake, Penn Lake, Mary Lake and Lake of Bays are most popular with today’s recreational purchaser.

The most expensive waterfront property sale so far this year in the Lake of Bays area had a sticker price of $2,495,000 while the priciest sale in Huntsville was $740,000.

Around lakes Muskoka, Rosseau and Joseph, the 500 centimetres of snow and what locals are calling “the worst winter since 1942” hampered recreational property activity so far this year. The number of homes sold in the first four months was down about 40 percent from 2007 levels. Despite the decline, prices continue to hold steady with starter product on par with last year’s figures.

There has been some softening in the upper end of the market, priced in excess of $2 million, where inventory is plentiful. More than a dozen properties have sold over the $1 million price point.

The usual suspects are fueling the market, with aging baby boomers and the odd celebrity leading the charge for recreational properties. Inheritance and the downloading of wealth have helped to prop up sales. The greatest demand exists for properties priced from $500,000 to $1 million on Muskoka, Rosseau, and Joseph and between $300,000 to $700,000 on the smaller lakes such as Brandy, Mirror, and Sucker.

The starting price of a three-bedroom, winterized recreational property on a 100 ft. waterfront lot is $500,000 to $550,000 while the same product on a smaller lake will start as low as $300,000.

Although an adequate supply of recreational properties is currently listed for sale, the market could use an influx in the $800,000 to $2 million price range on the Big Three.

The most expensive property listed for sale boasts 1,800 ft. of prime shoreline on Lake Joseph with a sticker price of $12 million. The highest priced sale this year — at $5.6 million — was on Lake Joseph. The property featured 890 ft. of waterfront, a 2,500 sq. ft. older cottage, and a boathouse.

Affordability is an issue near Bala and Port Carling, but recreational properties on riverfront, islands, and smaller lakes can be purchased at a fraction of the cost of a property on the Big Three. The least expensive sale, for example, occurred on Lake Morrison at $180,000 (an 860 sq. ft. seasonal cottage).