The average home price in Ontario's cottage country is expected to rise by nearly $60,000 in the coming year.

According to RE/MAX Canada's Muskoka Housing Market Outlook 2023, the average home price in the region will rise to $795,378.96 next year, an eight per cent increase from the $736,430.00 average experienced between January 1, 2022 and October 31, 2022.

Home sales in Muskoka are expected to increase by five per cent in 2023, keeping the region firmly in a seller's market throughout the coming year. RE/MAX Canada noted that the conditions will be most apparent in the top half of the market.

In addition to Muskoka, only seven other Ontario markets are expected to favour the seller in 2023, including Sudbury, Haliburton, Ottawa, and the Kawarthas.

Image via RE/MAX Canada.

The top trends affecting Muskoka's housing market in 2023 include rural homes with access to strong internet, and homes with in-law suites for income potential.

While home prices in Muskoka are on the rise, they're falling elsewhere across Canada, including in the City of Toronto.

According to RE/MAX Canada's report, the average residential sale prices will fall by 3.3 per cent in 2023 as the market regains its balance.

Elton Ash, Executive Vice President of RE/MAX Canada, noted that market activity is expected to return to a "more-regular pace," in the second half of 2023 as economic conditions stabilize.