Annual 2020 Market SpotlightMarket Updates
ANNUAL MARKET SPOTLIGHT
All data collected here is representative of single family detached dwellings both on and off water in the South Muskoka and North Muskoka areas.
WATERFRONT HUNTSVILLE/LAKE OF BAYS
The Huntsville/Lake of Bays waterfront market experienced a significant increase in average sale price with a 21% increase compared to 2019 where average sale price was 10% higher than in 2018. It was no doubt the demand for recreational property as due to the pandemic, creating a frenzy in the cottage market. We experienced cottages that were on the market the previous year, sell in multiple offer situations, which rarely happened in the cottage market. All price points were selling. The highest recorded sale on water in the Huntsville/Lake of Bays was on Lake of Bays selling for $3,750,000. It sold for full list price after just 4 days on market.
OFF WATER RESIDENTIAL HUNTSVILLE/LAKE OF BAYS
The residential off-water market also experienced a record year with the average sale price increasing by 24% compared to 2019. Average sale price increase the previous year was 8%. Low inventory, surplus of demand creates the perfect storm for a very competitive market where homes are selling for list price or significantly more. Some homes selling 100K over list if not more. In conversations with people questioning whether this is a good time time to sell, the answer is “it depends, do you have somewhere to go?” We don’t have a crystal ball, however, it would appear that the trend to move out of the city and to more rural locations, is not going anywhere any time soon.
Average sale prices for the month of December were up across Muskoka for both waterfront and off-water detached single family dwellings.
The highest recorded off water sale for December in North Muskoka was $1,750,000 with the lowest sale at $380,000; while the highest recorded sale in South Muskoka was $633,000 with the lowest sale at $263,000.
The highest recorded waterfront sale for December in North Muskoka was $1,800,000 on Lake of Bays; while the highest recorded sale in South Muskoka was $14,995,000 on Lake Joe.
Increasing average sale prices coincide with fewer days on market (DOM) and higher sale to list price ratios indicating homes/cottages are selling for either very close to asking, for asking or well over in some cases.
The market remains in the favour of Sellers, however, in the same breath, not everything is selling. Despite record demand if a Buyer feels a property is overpriced…it will likely sit.
How long will this last is the question?
Well…projections are the demand will continue and unless we see an increase in supply, prices are not going anywhere, especially with interest rates in some cases below 1.8%.
Any questions about the market specific to your area, please don’t hesitate to reach out.