2018 Muskoka Real Estate Cottage Review



January 10, 2019

If you are looking to sell or buy a Muskoka property, here’s a good starting point. Below is a breakdown of the 2018 Muskoka Cottage Market.

If you have questions, we’re here to help.

Muskoka Cottage Sale to List Ratio

muskoka cottage sale to list ratio

BUYERS MARKET (< 35%)

The supply of homes on the market exceeds demand.

 

BALANCED MARKET (35%-55%)

The number of homes on the market is equal to the demand or number of buyers.

 

SELLERS MARKET (> 55%)

The number of buyer’s wanting homes exceeds the supply or number of homes on the market.

Type of Market

#Sold ÷ #Listed = Type of Market
58% -Balanced Market

Low supply and savvy buyers has kept the waterfront market in check. 58% is barely a sellers market, therefore pricing properly is critical. A cottage purchase is with discretionary funds, not a necessity like a home purchase.

 

2017 to 2018

Units Sold

Down 29%

Inventory

Down 29%

Muskoka Cottage Unit Sales by Month

muskoka unit sale by month

Muskoka cottage sales down over 22.2% year-over-year.

Slow start in 2018 compared to 2016 and 2017. In the first half of 2018 there were 32.3% fewer sales YOY and only 13.6% fewer sales in the second half YOY. Appears that buyer’s were cautious heading into 2018 and I suspect the same for 2019. Buyer’s want to wait and see before making a decision to purchase.

 

When to list

The spring market is typically the best time to list your property, but I believe going into 2019 you are better to wait till June to list your cottage property. If you wait your property will look so much better with leaves on the trees and some flowers in bloom. It’s also important to discuss a strategy with your realtor because other factors may influence when to list, such as weather and economic conditions.

Muskoka Cottage Unit Sales, Big Lakes vs Medium/Small Lakes

BIG LAKES: Lake Rosseau, Lake Joseph, Lake Muskoka, Lake of Bays, Fairy Lake, Mary Lake, Lake Vernon, Peninsula Lake, Skeleton Lake

Big Lakes

Down 23.5%

 

Medium/Small Lakes

Down 21.9%

Muskoka Cottage Average and Median Sale Price

muskoka average and median price

Average Sale Price

$972,970*

 

Median Sale Price

$680,000*

 

2017 to 2018
Percentage Increase in Average Sale Price

$969,087 to $972,970*
Up .4%

 

Percentage Increase in Median Price

$597,500 to $680,000*
Up 13.9%

 

*Excludes lakes in Seguin Twsp. (District of Parry Sound)

Muskoka Cottage Sold to List Price and Sold to Original List Price

List the sale price ratio for 2018 decreases to 96% from nearly 96.8% in 2017.

Muskoka Cottage Average Days on Market

Days on Market

66

Average days on market is 2 days fewer year over year.

muskoka cottage days on market by quarter

The Muskoka Cottage Market remains a balanced market, with the number of cottages on the market are equal to the demand or the number of buyers. In 2018 there was over 22% fewer Muskoka cottage sales and the average price remained basically the same — 2018 $972,970, 2017 $969,087, representing an increase of .4%. Days on Market and Sale to List Price Ratios have relatively unchanged as well.

Download the complete market update in PDF format.

 

These summaries of the Muskoka real estate market were put together with data provided by The Lakelands Association of Realtors.