2021 Muskoka Cottage Real Estate Market

Thank you for checking out the year in review on the Muskoka cottage real estate market! It was another record-breaking year in Muskoka real estate. Since the beginning of 2021, we have seen an extreme demand for cottages in Muskoka, and with low inventory, the market is strongly tilted toward the seller’s advantage. Inventory continues to decrease year over year and in 2021 Muskoka cottage listings were down 20%. Also noticeable that units sold have also declined by 27.4% due to the lower inventory and increasing prices, making cottages unaffordable for many. The average sale price on the other hand is up waterfront cottages 22.1% year over year. Average days to sell dropped 28 days this year from 51 days to 23 days.

To have your existing Muskoka waterfront cottage professionally staged, photographed, listed, and SOLD please feel free to contact the Aben Team.

Would you want to miss out on this unprecedented time to sell Muskoka Real Estate?

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If considering selling or buying Muskoka Real Estate, reach out anytime.
John Aben, Broker — john@abenteam.com or call 705-788-4770.
Mark Aben, Broker — mark@abenteam.com or call 705-788-4388.
Email: info@abenteam.com

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

2021 Muskoka Cottage Real Estate Market | What Type Of Market Are We In

Number of Cottages for Sale for 2021 – Down 6.4% YOY

Number of Units Sold for 2021 – Down 14.9% YOY

761 (number sold) ÷ 1992 (number listed) = .77 (77%)
77% = Sellers Market

SELLERS MARKET (> 55%) – The number of buyers wanting homes exceeds the supply or number of homes on the market.

This statistic means that of the cottages listed, 77% of the waterfront listings have sold to the end of 2021 with another high sellers advantage in the market for the past couple of years. In the past, we have seen ups and downs but the overall supply is trending downward. This trend is present in residential as well but is more strongly shown on the waterfront.

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 buyers wanting homes exceeds the supply or number of homes on the market.

2021 Muskoka Cottage Real Estate Market | Average and Median Sale Price

Average Sale Price – $1,647,268

Median Sale Price – $1,143,000

Percentage Increase in Average Sale Price
$1,348,654 (2020) to $1,647,268 (2021) = Up 22.1%

Percentage Increase in Median Sale Price
$850,000 (2020) to $1,143,000 (2021) = Up 34.5%

Taking into account all water bodies in Muskoka, small and large, the market statistics show a rise in the average price for 2021 at 22.1% compared year over year. The demand remains high for a cottage in Muskoka, but unit sales are lower as many cottage properties are out of reach for many buyers.

2021 Muskoka Cottage Real Estate Market | Unit Sales – Big Lakes vs Medium/Small Lakes

Comparing Units Sold on Different Sized Lakes

Big Lakes* – Down 26.8%
2020 – 384, 2021 – 281

Medium/Small Lakes** – Down 5.5%
2020 – 508, 2021 – 480

Unit sales in 2021 for big lakes are down 26.8% YOY, compared to small/medium lake down only 5.5%. I attribute the larger decrease in unit sales on the big lakes to the rising average price in 2021 of over $2.8MM. Many buyers are choosing to purchase a cottage on the small to medium-size lakes for affordability.

*Big Lakes: Lake Rosseau, Lake Joseph, Lake Muskoka, Lake of Bays, Fairy Lake, Mary Lake, Lake Vernon, Peninsula Lake, Skeleton Lake

2021 Muskoka Cottage Real Estate Market | Number of Cottages Sold by Month

Number of Cottages Sold – Down 14.9%

An early start for 2021, with more sales in the first quarter, compared to 2020. As March came around, the market started to flourish with demand and the movement to find a place away from the city, but with lower inventory, we did not see or come close to matching sales volume of 2020.

When to list

In the current market, the demand is higher than ever! If you are in a position to sell, listing your cottage now while supply is low and demand is high is always a good strategy. Towards the spring and summer of 2022 supply could increase and the market could shift. Also, watch the interest rates as they are project to start rising in 2022.

2021 Muskoka Cottage Real Estate Market | Number of Cottages Sold by Price Range

2020 – 60% of sales under $1,000,000

2021 – 40% of sales under $1,000,000

This shows that there are fewer cottages selling in 2021 than in 2020 under $1,000,000 as average cottage prices continue to rise.

2021 Muskoka Cottage Real Estate Market | Average Days on Market

Days on Market – 23

The average days on market are 28 days shorter year over year.

2021 Muskoka Cottage Real Estate Market | Sold Price to List / Original Price

List Price to Sale Price ratio – 100.8%
Increased from 97.8% in 2020 to 100.8% in 2021

This statistic provides good evidence of increased value to cottage owners. In this market well listed and priced properties are generating significant interest and selling over asking price under multiple offers has become quite common.

Data Source: The Lakelands Association of Realtors