IS THE MUSKOKA REAL ESTATE MARKET CHANGING?
Update June 20/22
The market continues to soften but at a slow pace. I can tell that the market is shifting and thought I better explore it in more detail. I’ve attached two graphs showing both Muskoka Residential Market and Muskoka Waterfront Market, two distinct markets in my opinion.
The ratio between the number of new listings and the number of sales for May 2022, is 45%. That means that only 45% of properties are selling. If you compare that to April 2022 at 70%, that’s a 29% difference.
For June, up to June 20th, the ratio is currently at 43%, but the average sale price has dropped over 18% from $781,137 in May to $639,577 so far in June. The average sale price is now at the same level as this time last year, but I don’t think all residential properties are affected to the same degree.
Looking at the chart you will see that the higher price categories are taking the brunt of the hit in lower unit sales with only 1 sale over $1,000,000 in June to date. Where there were 18 sales in May.
We are now through the month of May 2022 and the bulk of June, so data will become more meaningful as the cottage/waterfront market gets into full swing.
The average sale price so far in June is consistent with May numbers at $2,186,940.
The sale to new listing ratio so far in June has increased to 40% indicating we are in a balanced market. This occurs with the sale to new listing ratio is between 35% – 55%.
April 2022 activity: There have been a number of high-valued sales on the Muskoka Big Lakes. This has skewed the average price for April. Sales included: $15,750,000, $8,500,000, $8,400,000, $7,995,000, $6,550,000. These high-valued properties are not often sold and with the lower number of cottage sales, the average price for Apil was distorted.
There is no lack of buyers waiting to get into the Muskoka real estate market, but with high inflation, rising interest rates, and threats of recession, buyers are sitting back and waiting to see what the shake-out is in the Muskoka real estate market.
We’ll do our best to keep you informed, but don’t hesitate to reach out with any questions.
John Aben 705-788-4770, or john@abenteam.com
Mark Aben 705-788-4388, or mark@abenteam.com
