Real estate

Ontario’s Cottage Country real estate supply sees record supply levels

Written by
STOREYS editorial team

Ontario’s coveted cottage country real estate market is seeing record supply drops and skyrocketing prices.

While we’ve seen the market slow its sizzle from the searing frenzy levels seen last year (well, since the start of the pandemic, in fact), sales in the Lakelands region have remained strong, according to the Lakeland. Association of Realtors.

Non-waterfront residential sales recorded through the MLS® system for the Lakelands region totaled 280 units in January 2022. This represents a substantial decline of 12.8% from the same period in 2021. However, residential sales non-riparian areas were still 1.3% above the five-year average and 8.4% above the ten-year average for the month of January.

When it comes to waterfront properties – those more commonly associated with cottage vacation homes – it’s a similar story. Waterfront property sales were 53 units in January 2022. This marks a dramatic drop of 34.6% from the same period in 2021. That said, waterfront sales were 16.2% above the five-year average and 20.7% higher than the ten-year average. for the month of January.

For those looking for a lakeside cottage in the Lakelands, the reality is that the choices are incredibly slim. Adding insult to injury, that naturally means that a piece of Ontario’s pristine cottage countryside is more expensive than ever.

“Despite an increasingly intense supply shortage, sales of waterfront and non-waterfront homes still managed to surpass typical levels in January,” said Chuck Murney, president of the Lakelands Association of Realtors. “The new supply coming onto the market is simply not enough to meet current levels of demand, which has brought overall stocks down to their lowest levels on record.”

According to the MLS® Home Price Index (HPI), the overall composite benchmark price was $675,700 in January 2022 in the Lakelands region, up a steep 32% from January 2021.

“The waterfront cottage market continues to be in selling territory with even less inventory than usual in January and very strong buyer demand,” says Lakelands realtor Maryrose Coleman, of Sotheby’s Realty, which specializes in the Muskoka and Georgian Bay regions.

The median price of Lakeland area waterfront property sales in January 2022 was a record high of $1,150,000, up a steep 33.7% from January 2021. The total dollar value of all waterfront sales in January 2022 was $82.1 million, down 3.3% from the same month in 2021.

It’s not just waterfront properties that are going up in price.

“Non-waterfront demand has also remained very strong, with properties selling in multiple offers and well above the list,” Coleman says. “A residential house in Bracebridge sold last week for $70,000 above a similar house a few doors down that sold in late November.”

The median price for sales of non-waterfront residential properties in January 2022 was a record $807,500, up a steep 30.2% from January 2021. The benchmark price for single-family homes was $692,500, an increase substantial 32.4% over one year. annual basis in January. By comparison, the benchmark price for townhouses/townhouses was $589,500, a 35.2% jump from the previous year, while the benchmark price for apartments was $512,400, a substantial gain of 31.5% over the previous year’s levels. The total dollar value of all non-waterfront residential sales in January 2022 was $262 million, a whopping 13.3% gain over the same month in 2021. This was also a new record for the month of January.

“Overall, inventory is at its lowest level since our real estate board started keeping records, with prices rising 30% year over year and new records being set daily,” says Coleman.

“Although it is early to predict, there are signs of a frenzied market similar to what we saw in 2017, which was followed by lower prices and sales later in the year. At this point, I’m confident this won’t happen again unless there is a major economic correction or government intervention, as there simply isn’t enough inventory to support demand in the market. .As a wise sage once said, they don’t do more waterfront properties…..”

Written by
STOREYS editorial team