Cottage Country Bust – small dead animals

Higher interest rates coupled with rising unemployment are throwing the marginal consumer out of the cottage market in a big way.

One three-bedroom cottage sold for $735,000 in April — a 33 per cent loss for the previous owner who purchased it in 2021 for $1.1 million.

“You’ve got to be struggling financially to take a $300,000 loss,” Blenkarn said. “Nobody wants to sell for a loss like that.”

Blenkarn said he is also seeing cottages being leased out and up for sale at the same time, an indicator that the owner is having trouble affording the property in the interim.

10 Replies to “Cottage Country Bust”

Awh, most of them voted for this. My heart bleeds… not.

Funny. I talked to an old fellow 2 days ago who built a cottage on Lac Louise near Brownsburg, PQ for $130k 15 years ago. “It’s crazy, I can get $800,000 now!” And he emphasized the ‘now’. He understood full well what’s going on.

The GOOD NEWS is … that you can still buy a 1,200 sq.ft. “cottage” in Palo Alto for the low, low price of $2,600.00/sq.ft.

https://www.zillow.com/palo-alto-ca/sold/

https://www.zillow.com/homedetails/1520-Emerson-St-Palo-Alto-CA-94301/19497054_zpid/

Steve from Rockwood says:

July 11, 2025 at 6:44 am

I think the point of this article is that prices have fallen from ridiculously insane to merely insane.
1. Kenji says:
  
  July 11, 2025 at 2:28 pm
  
  I see your ridiculously insane prices and raise you the ridiculously mind-numbing $2,600.00 per 12”x12” piece of our shitty 1950’s ranch-style cottage.
  
  Here in the USA … our Federal Reserve Bank is keeping interest rates high in an attempt to make buying such homes impossibly unaffordable … with the intent of cratering home prices to the merely insane. But the Fed doesn’t believe in Supply-side economics, they only know price controls … interest rate controls.
  
  Hence, the supply of homes isn’t being increased at the rate necessary to defeat the inflationary spiral of house prices. Nope. The Fed is actually doing the exact opposite by making home building unaffordable and home purchases unaffordable.
  
  It’s actually astounding to me that these “experts” ever actually attended school. Or what they were actually taught (indoctrinated) in those schools.

I thought it was bad here on the back end of 50 to 100% price increases in a market where that are no, zero, nada jobs that can support such a mortgage payment.