As you prepare to navigate the Muskoka real estate market, whether buying a dream waterfront property or selling your cottage or home, it is important to decipher the market trends.
For Buyers:
The Muskoka real estate market in December 2023 for residential non-waterfront properties has seen a downturn, with sales numbers falling significantly from the previous year. This decline indicates a market where buyers may have increased leverage. As sales are below the five-year and ten-year averages, this could mean more room for negotiation on price and terms. The waterfront property market, however, shows a slight increase in sales, suggesting continued desirability for these properties. The median price for waterfront properties surged by 30.7% from December 2022, reflecting the premium that buyers are willing to pay for these sought-after locations.
If you’re considering purchasing a property, especially a waterfront home, be prepared for potentially higher prices. It may be wise to act before the spring season when the market traditionally picks up, and competition could increase. It is suggested that an anticipated shift in the market with possible interest rate decreases, which could influence buyer confidence and market activity.
For Sellers:
The data indicates that sellers of non-waterfront properties may need to be strategic in their pricing due to the market’s downward trend. With sales well below the annual averages, understanding the value of your property in the current market is essential. For those with waterfront properties, the market appears more favorable. Although the year ended with fewer sales compared to the average, an increase in median prices suggests that sellers can still achieve a substantial return on investment.
The increase in listing inventory and the median days on the market could pave the way for a stronger spring.
Thoughts
Buyers should weigh the current market dynamics against their personal circumstances and goals—there may be opportunities to find value, especially in the non-waterfront segment. Meanwhile, sellers, particularly in the waterfront category, should capitalize on the strong pricing trends but remain adaptable to market shifts.
It’s important to stay informed with the latest market analyses and forecasts from reliable sources, which provide broader economic context and predictions for the real estate market’s direction. The Muskoka real estate landscape is nuanced, and as we approach the spring, both buyers and sellers should prepare for a potentially active market period.
Market Overview / December Statistics – Lakelands Region:
Non-Waterfront
Residential non-waterfront sales activity recorded through the MLS® System for the Lakelands region totaled 162 units in December 2023. This was a substantial decline of 12.4% from the same period in 2022. Residential non-waterfront sales were 35.6% below the five-year average and 35.9% below the 10-year average for the month of December. On an annual basis, residential non-waterfront sales totaled 4,162 units over the course of 2023. This was a decline of 8.8% from 2022.Sales of waterfront properties numbered 25 units in December 2023. This increased by 4.2% (one sale) from the same period in 2022.
Waterfront
Waterfront sales were 45.9% below the five-year average and 47% below the 10-year average for the month of December. On an annual basis, waterfront sales totaled 1,109 units over the course of 2023. This was a modest decline of 3.6% from 2022.Overall home sales for 2023 came in at the lowest levels in more than 25 years after higher interest rates pushed many buyers to the sidelines amid affordability reassessments and uncertainty on future rate movements,” said Bonnie Looby, President of the Lakelands Association of REALTORS®. “The waterfront category was slightly outperforming activity in the non-waterfront segment towards the end of the year, with both sales and median prices appearing to stabilize for the waterfront segment of the market. With the normal seasonal trend of activity quieting down for the winter we will need to wait for the arrival of spring before we can determine how the year ahead will shape up based on whether buyers are still holding out or not.
MLS Home Price Index:
The MLS® Home Price Index (HPI) tracks price trends far more accurately than is possible using average or median price measures. The overall MLS® HPI composite benchmark price was $659,100 in December 2023, a decline of 4.3% compared to December 2022.The benchmark price for single-family homes was $681,600, down by 4.4% on a year-over-year basis in December.
The annual residential non-waterfront median price was $675,000, a decrease of 6.3% from all of 2022. The annual waterfront median price was $950,000, a decrease of 4.5% from all of 2022.
Source:The information for the market summary was gathered from the Canadian Real Estate Association, The Lakelands Association of REALTORS®.
