Property
Property
Muskoka Cottage Real Estate | The Standoff Continues
As the 2024 Muskoka real estate season winds down, a clear theme has emerged: a persistent standoff between cottage sellers and buyers. Both sides remain entrenched, with neither willing to concede. This year has been one of the slowest for waterfront properties in recent memory, impacted by several headwinds. As highlighted in our previous Muskoka Real Estate Reports, key factors such as rising interest rates, the foreign buyer tax, increased cost of living, and general market sentiment have left many potential buyers on the sidelines.
Interestingly, the slowdown in sales activity cannot be attributed to a lack of listings. In fact, inventory has nearly doubled year over year. As shown in the chart, there are currently almost 10 months of waterfront properties available for sale, with cottage listings reaching a multi-year high. Clearly, the supply side is not the issue.
Despite this, demand remains strong—but not at current price levels. This standoff has created a unique dynamic where both buyers and sellers seem to feel slighted when offers come through. Many sellers (along with their agents) are holding on to inflated prices from the COVID-era boom, while savvy buyers are on the hunt for a deal. It’s a game of chicken, and ultimately, sellers may be the first to blink.
The Lakelands Association of Realtors® September 2024 report.
Residential non-waterfront sales activity in the Lakelands region, recorded through the MLS® System, totaled 398 units in September 2024—an 11.8% increase compared to September 2023.
However, residential non-waterfront sales were still 20.4% below the five-year average and 23.1% below the 10-year average for the month of September. On a year-to-date basis, there were 3,235 residential non-waterfront sales during the first nine months of 2024, reflecting a moderate decrease of 6.2% compared to the same period in 2023.
As for waterfront properties, 154 units were sold in September 2024, representing a 14.9% increase compared to September 2023. Despite this growth, waterfront sales remained 16.1% below the five-year average and 22.4% below the 10-year average for September.
Lakelands Home & Cottage Price Update – September 2024
The MLS® Home Price Index (HPI) provides a more accurate reflection of price trends than traditional average or median price measures. In September 2024, the overall MLS® HPI composite benchmark price was $713,000, representing a 2.5% decline compared to September 2023. Breaking it down by property type, the benchmark price for single-family homes was $743,600, marking a modest year-over-year decline of 2.2%. Townhouse and row units had a benchmark price of $553,900, a 5.9% drop from a year earlier, while the benchmark price for apartments was $466,500, reflecting a 5.8% decrease compared to the same period in 2023.
For residential non-waterfront properties, the median sale price in September 2024 was $651,500, which represents a 3% increase from September 2023. On a year-to-date basis, the median price for residential non-waterfront properties was $660,000, showing a slight decline of 2.9% compared to the first nine months of 2023. Meanwhile, the median sale price for waterfront properties in September 2024 was $965,000, a decrease of 2.9% from September 2023. Year-to-date, the median price for waterfront properties stood at $926,250, reflecting a modest 3.9% decline from the same period last year.
The total dollar value of all residential non-waterfront sales in September 2024 amounted to $306.3 million, a significant 20.1% increase compared to September 2023. The total dollar value of all waterfront sales in September 2024 was $235.6 million, a substantial increase of 32.8% from the same month in 2023.
