LAKE OF BAYS
An overview for both buyers and sellers of waterfront properties in the township of Lake of Bays for August 2024 highlighting key metics and trends.
Trends
For Sellers:
Sales Activity and Listings:
- In August 2024, sales activity dropped to 13 transactions, representing a 44.4% increase compared to August 2023 but a 62.5% drop compared to August 2022. This suggests that sales activity is volatile but currently recovering from lower levels seen in previous months.
- New listings increased by 4.8% from August 2023, suggesting sellers are becoming more active in listing properties.
- Active listings saw a 12.1% increase compared to August 2023 and a 39.6% increase compared to August 2022, indicating a growing inventory of properties for sale.
Prices:
- The median price has dropped by 79.7% from August 2023, settling at $715,000.
- Sellers might need to adjust their price expectations, given the steep declines in both average and median prices, which suggests that buyers have more negotiating power right now.
- Sale to List Price Ratio: The sale to list price ratio has decreased to 90.3%, down from 95.2% in August 2023. This suggests that properties are selling for below the asking price, another sign of a buyer’s market.
Days on Market:
- Median days on market increased to 66 days in August 2024, up from 21 days in August 2023. This is a significant rise, indicating that properties are taking longer to sell. Sellers should be prepared for longer transaction times and may need to be more flexible with pricing.
For Buyers:
Increased Inventory and Choices:
- Active listings are up by 12.1% compared to August 2023, providing more options for buyers. The months of inventory stands at 5.7 months, giving buyers more time and options to make decisions without facing the urgency seen in hotter markets.
- Buyers are seeing more available properties and have more time to explore their options.
Bargaining Power:
With the sale to list price ratio at 90.3%, buyers can likely negotiate lower prices than the listed amount. This ratio is a positive sign for buyers, as properties are selling for less than their asking price on average.
Time to Act:
The increase in median days on market to 66 days suggests that buyers are not under pressure to make quick decisions. This extended time frame allows for more due diligence and better negotiation opportunities.
Year-to-Date Trends:
- Sales for 2024 year-to-date are down by 12.3% compared to the same period in 2023, reflecting a slowdown in the market.
- The average price year-to-date is down by 27.7% compared to last year.
- New listings year-to-date are up by 9.4%, continuing the trend of more properties entering the market.
HUNTSVILLE
An overview for both buyers and sellers of waterfront properties in Huntsville for August 2024 highlighting key metics and trends.
TRENDS
For Sellers:
Sales Activity:
- Sales activity in August 2024 dropped to 10 transactions, which is a 33.3% decline from August 2023 and a 41.2% drop from August 2021. This signals reduced demand and fewer buyers actively purchasing properties.
Pricing Trends:
- The average price of homes in August 2024 is $1,049,500, which is a 7.2% drop from August 2023 and a slight 0.5% decrease from August 2022. While prices are down, they have not dropped dramatically, which is relatively positive for sellers. However, the median price is more concerning, showing a 37% drop from August 2023 and a 51.8% decline from August 2022, standing at $554,500. The decline in median prices suggests that more lower-priced homes are being sold, or higher-priced homes are seeing significant reductions.
Sales to List Price Ratio:
- The sale to list price ratio is 95.6%, which means homes are selling for just under their listed price. This is slightly lower than August 2023 (97.5%) but still indicates sellers are getting close to their asking prices, although some negotiation is happening.
Market Duration:
- Homes are staying on the market much longer. The median days on market increased to 104 days, which is a significant rise from 29 days in August 2023. Sellers need to be prepared for properties to take much longer to sell compared to previous years.
Year-to-Date Trends:
- Year-to-date sales are down by 12.5%, reflecting slower market conditions.
- Active listings have increased by 28.4%, adding more competition for sellers.
- The year-to-date median price stands at $850,000, a relatively modest decline of 2.9% compared to August 2023.
Advice for Sellers:
- Sellers may need to adjust their expectations, especially around pricing, and be prepared for homes to take longer to sell.
- Competition is increasing with more active listings, and buyers seem to have more power in negotiations as homes are staying on the market longer and selling for under the asking price.
- Flexibility on pricing and strategy will be key to attracting potential buyers in a softer market.
Advice for Buyers:
Competition:
- Sales activity has dropped, and homes are staying on the market longer, with 104 median days on market in August 2024 compared to 29 days in August 2023. This extended time frame gives buyers more time to evaluate properties and negotiate.
- Active listings are up by 9.5% compared to August 2023, meaning there are more options for buyers to choose from.
Pricing Trends:
- The average price*of homes is down by 7.2% from August 2023, and the median price has decreased significantly by 37% to $554,500. This presents an opportunity for buyers to enter the market at a lower cost compared to previous years.
- The year-to-date median price of $850,000 is only slightly down by 2.9%, showing that prices have stabilized somewhat over the course of the year, but buyers are likely to find more attractive deals now compared to recent years.
Negotiation Power:
- The sales to list price ratio is 95.6%, indicating that buyers are able to negotiate prices slightly below the listing price. This gives buyers some leverage in negotiations, especially as sellers may be motivated by the longer time it takes to sell.
Inventory Levels:
- The months of inventory in August 2024 is 11.5, a significant increase from 7.0 months in August 2023. This indicates a buyer’s market, as there is a large supply of homes relative to demand. Buyers can take advantage of this to negotiate better prices and terms.
Year-to-Date Trends:
The year-to-date sales to new listings ratio is 22%*, which is low and shows that there is an excess of supply compared to demand. This imbalance favours buyers, giving them more options and more time to make decisions.
Year-to-date average prices have only dropped slightly by 3.5%, while median prices have remained relatively steady, down 2.9%. This could signal a window of opportunity for buyers to purchase before prices stabilize or rise again.
Advice for Buyers:
- This is a favourable market for buyers with increasing inventory, lower competition, and prices that are either stable or decreasing.
- Buyers have more time to make decisions and should leverage their bargaining power to negotiate for better prices, especially given that homes are staying on the market for much longer than in previous years.
Summary:
Sellers: Be prepared for a slower market, with longer listing durations and potentially lower offers. Flexibility on price and terms may be necessary to close deals.
Buyers: You are in a strong position with more options, lower prices, and more negotiating power. Now may be an opportune time to buy waterfront properties in Huntsville.
In conclusion, sellers in North Muskoka—Huntsville/Lake of Bays may face challenges in achieving high sale prices quickly, as the market appears to be favouring buyers with more inventory, lower prices, and longer sales cycles. For buyers, this could be an opportune time to enter the market, as they have more choices, negotiating power, and time to make purchasing decisions.
If you’re considering selling your property or searching for the perfect waterfront retreat, I’m here to provide expert guidance tailored to your needs. Let’s navigate this evolving market together. Reach out to my team today, and let’s discuss your options to ensure a successful sale or purchase.
