Post Summer Muskoka Real Estate Market – Update

Both Waterfront and Residential sales have been exceeding expectations this year. Sales on the waterfront are continuing to surpass previous years numbers month after month. The waterfront market has seen a 40.8% YTD increase in unit sales comparing Jan 1st – September 30th 2019 to the same timeframe in 2020.  New listings remain lower year to date, with 12.5% fewer listings. Well priced properties are generating a lot of interest. Selling over asking price is becoming more common on properly priced properties both residential and waterfront. There are plenty of buyers looking to move from larger cities and into the Muskoka area to take advantage of the work at home situations and lack of travel options.

Waterfront

The ratio of units sold to number of new listings has stayed constant this month after trending increasingly high all year. In the previous month of August the ratio was 75.5%, which indicates the cottage market has dove .3% deeper into the sellers market this month. Staying almost on point with the ratio of last month.

2019: 517 (sold) ÷ 1098 (new listings) = 47% (buyers market)

2020: 728 (sold) ÷ 960 (new listings) = 75.8% (sellers market)

Sellers Market = 55% and Higher (More buyers than there are listings)

Balanced Market = 35% – 55% (About equal listings to the number of buyers)

Buyers Market = 35% and lower (More listings than there are buyers)

Thinking of Listing your Home?

List Smart! Choose the Aben Team to have your home Staged, Listed and Sold. 

Well priced, well staged and well advertised listings are receiving a lot of interest and generating multiple offer situations consistently.

Call, Email or Text if you would like more information, don’t hesitate to reach out.

John Aben, Broker — john@abenteam.com or call 705-788-4770.
Mark Aben, Broker — mark@abenteam.com or call 705-788-4388

See graphs below for more information

Data based on the following: All Muskoka (Excludes residential, vacant land, condo and commercial properties)

Muskoka Cottage Unit Sales & Average Price

2020 September Sales – UP 37.6% YOY

September 2019 – 93 sales

September 2020 – 128 sales

2020 Jan to September – UP 40.8% YTD

January-September 2019 – 517 sales

January-September 2020 – 728 sales

Average Sale Price – $1,355,558

Median Sale Price – $850,000

The high demand for a cottage in Muskoka and 12.5% fewer listings year over year is driving up the average sale price for a waterfront property in Muskoka 24.5% YTD!

September had 37.6% more sales YOY over September 2019. From January 31st to September 30th, the number of sales are up 40.8% compared to the same period last year. Strong sales in September for the fourth month in a row almost matching the previous months of August highs of 130 sales on the waterfront! The waterfront market has been on fire! Seeing another 128 sales throughout the month of September, the highest ever recorded in the month of September. Very promising numbers for anyone investing in waterfront in the area. Even more exciting for anyone looking to list their waterfront home.

The desire for a waterfront cottage in Muskoka has never been higher. September 2020 is the fourth month straight of record breaking numbers in monthly sales recorded on Muskoka waterfront. Demand has tapered slightly since June and Julys record high amount of sales. However, the demand is not fizzling out by any means.

Muskoka Cottage Listed to Sold Ratio

Listed – 989 cottages

Sold – 751 cottages

The high demand for a cottage in Muskoka and 12.5% fewer listings year over year is driving up the average sale price for a waterfront property in Muskoka 24.5% YTD!

The downward trending nature of the supply curve is a good sign for the area. It means more people are moving in with less people as eager to move out. Since 2015 the supply has taken a significant drop (~50%) since the early 2010s. Despite the decrease in inventory there was an increase in unit sales of 26% since 2019. We are now deep into sellers market territory where there is a lack of supply for the high demand for waterfront and residential alike.

Data based on the following critera: All Muskoka (Excludes residential, vacant land, condo and commercial properties)
*Excludes lakes in Seguin Twsp. (District of Parry Sound)

Muskoka Residental Average Sale Price by Town

YTD 2020 September 30th Average Home Price Increase

Huntsville – 28.5%

Bracebridge – 15%

Gravenhurst – 30%

With new listings down and the heightened demand for a property the average sale price and total number of unit sales are on the rise. Average sale price is up 28.5% in Huntsville YTD since the end of last year. In Bracebridge, the average sale price is up 15% and In Gravnhurst the average sale price is up a whopping 30% since the end of 2019. We still have a full quarter of the year ahead of us and already two of the three towns in Muskoka are seeing 30% increases in average sold prices. It will interesting to see how the rest of the year plays out for residential home values. The increase of demand and lack of available properties can lead sellers to selling homes above asking price under multiple offers. 

All this data considered and analyzed indicates that there is no better time to get your Muskoka cottage or Residential home listed while supply is low. The demand from buyers wanting to get out of the city could help sell your property for fantastic value.

Thinking of Listing your Home?

List Smart! Choose the Aben Team to have your home Staged, Listed and Sold. 

Well priced, well staged and well advertised listings are receiving a lot of interest and generating multiple offer situations consistently. 

Call, Email or Text if you would like more information, don’t hesitate to reach out.

John Aben, Broker — john@abenteam.com or call 705-788-4770.
Mark Aben, Broker — mark@abenteam.com or call 705-788-4388

Data Source: The Lakelands Association of Realtors