2019 Muskoka Cottage Real Estate Market



February 8, 2020

2019 Muskoka Cottage Real Estate Market

Muskoka cottage market continues to be a sound investment. Since 2010 the average price has increased over 79.9%. Market appears to be balanced with equal supply to demand. In 2019 we had an increase in cottages on the market, that’s the first increase since 2015. Despite fewer sales in 2019 the average sale price has gone up 11.88%, now over $1MM for the first time. There were four sales in the Muskoka Lakes area in 2019 over $8MM, were big factors in driving up that average price. Days on market remain fairly consistent over the past three years, now it takes approximately 69 days on average to sell a cottage.

 

If you would like more information, don’t hesitate to reach out anytime. Email: info@abenteam.com or call 1-844-843-2236.

 

Data based on the following:
Muskoka Waterfront Cottages
Excludes residential, vacant land, condo and commercial properties

What Type Of Market Are We In

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Number of Cottages for Sale for 2019 – Up 5.6% YOY

Number of Units Sold for 2019 – Down 4.2% YOY

 

596 (number sold) ÷ 1131 (number listed) = .53 (53%)

53% = Balanced Market

BALANCED MARKET (35%-55%) – The number of homes on the market is equal to the demand or number of buyers.

 

First time since 2015 that we have an increase of 5.6% in supply from 1071 listings in 2018 to 1131 in 2019. Despite the increase in inventory there was a decline in unit sales of 4.2%. We are now experiencing a balanced market where there’s adequate supply for the demand.

 

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.
muskoka-cottage-real-estate-sale-to-list-ratio
Click to view history

Average and Median Sale Price

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Average Sale Price – $1,089,461

Median Sale Price – $706,500

 

Percentage Increase in Average Sale Price

$973,765 (2018) to $1,089,461 (2019) = Up 11.88%

 

Percentage Increase in Median Sale Price

$681,000 (2018) to $706,500 (2019) = Up 3.74%

 

Since 2010 the average price has increased over 79.9%.

muskoka-cottage-real-estate-average-median-sale-price
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Unit Sales – Big Lakes vs Medium/Small Lakes

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Comparing Units Sold on Different Sized Lakes

Big Lakes* – Down 4.2%

2018 – 237, 2019 – 227

 

Medium/Small Lakes** – Down 3.9%

2018 – 384, 2019 – 369

 

*Big Lakes: Lake Rosseau, Lake Joseph, Lake Muskoka, Lake of Bays, Fairy Lake, Mary Lake, Lake Vernon, Peninsula Lake, Skeleton Lake
**All other lakes
muskoka-cottage-real-estate-lake-size-unit-sale
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Number of Cottages Sold by Month

cottage-30%

Number of Cottages Sold – Down 4.2%

Slower start in 2019 compared to previous years. In the first half of 2019 there were 18% fewer sales (252 sales in 2018 vs 207 sales in 2019) YOY in the first 6 months and an increase of 5.4% (369 sales in 2018 vs 389 sales in 2019) in the last half of 2019 compared to 2018.

 

When to list

It appears that more cottages are being sold later in the year than the traditional spring time rush. If you wait your property will present 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.

muskoka-cottage-real-estate-unit-sales-by-month.001
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Number of Cottages Sold by Price Range

cottage-30%

53% of cottage sales are under $750,000. This is down 1% from 2018. 

muskoka-cottage-real-estate-what-can-you-afford
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Average Days on Market

Calendar-31-30%

Days on Market  69

Average days on market is 3 days longer year over year.

Q2 has the fewest days on market at 60 days.

2019-year-in-review-revised-charts
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Sold Price to List / Original Price

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List Price to Sale Price ratio – Up .3%

Increased from 96% in 2018 to 96.3% in 2019

 

Original List Price to Sale Price – Up .1%

Increased from 95.3% in 2018 to 95.4% in 2019

muskoka-cottage-real-estate-sale-to-list-percentage
Click to view history
Data Source: The Lakelands Association of Realtors