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HALIFAX — Demand for cottages and recreational properties in Nova Scotia should remain strong despite the doubling of the province’s deed transfer tax, says an executive with a major real estate agency.
In an interview Friday, Matt Honsberger, president of the Halifax office of Royal LePage Atlantic, said he’s optimistic about the recreational real estate market because most waterfront properties in Atlantic Canada, which can sell for under $500,000, are significantly cheaper than in other parts of the country.
As an example, Honsberger said a cottage in the Muskoka region north of Toronto can cost between $1.5 million to $2 million, prices that are “unattainable for a lot of people.”
“Here in Atlantic Canada you can have a place on a lake for $300,000 to $400,000 that in some cases is less than an hour away from downtown Halifax,” he said. “That’s affordable, so I think that’s attractive to a lot of people.”
Honsberger added that while the deed transfer tax will definitely deter some buyers, others will factor it in as part of the cost of doing business. Nova Scotia’s 2025-26 budget increases the deed transfer tax for non-resident homebuyers to 10 per cent from five per cent as of April 1.
The Nova Scotia Association of Realtors opposes the increase, saying the tax will drive prospective buyers away to neighbouring provinces such as New Brunswick. The association has likened it to adding a “tariff” on Canadian buyers at a time when the country is trying to reduce internal trade barriers.
But Royal LePage says in its spring recreational property report that it expects a busy season in Nova Scotia with lower interest rates boosting buyer confidence. The company is forecasting that the median price for a single family home in Atlantic Canada’s recreational areas will increase eight per cent in 2025 to $498,852.
“Affordable recreational properties will continue to see demand because that market is only partially driven by people who are non-residents,” Honsberger said. “There are still lots of Nova Scotia residents who still want to buy recreational properties and I think there will be a lot of demand for that.”
With relations between Canada and the United States souring because of tariffs imposed by President Donald Trump, Honsberger said many Canadians might reconsider where to purchase cottages or other properties.
”My suspicion is as less people travel south they might divert some of that money into buying a property here,” he said. “That was certainly the case during the pandemic … the money got (diverted) and we saw a real run on recreational properties.”
Honsberger added that the company is already hearing anecdotal examples from its agents about people looking to relocate from places like Florida.
“I suspect it (the market) is going to continue to be strong into the spring and summer here,” he said.
Still, Honsberger made it clear that he doesn’t like the deed transfer tax increase, saying that governments need to be careful about putting “artificial limitations on people potentially being attracted to the province.”
This report by The Canadian Press was first published March 28, 2025.
Keith Doucette, The Canadian Press