Market
Market
Muskoka & Parry Sound Real Estate Market Update – Q1 2025
.The real estate market in Cottage Country experienced a noticeable shift in the first quarter of 2025, with both waterfront and non-waterfront residential segments reflecting broader changes in market conditions and buyer behavior. As we predicted in our 2025 Real Estate Outlook for Ontario, sales volumes for both homes and cottages are softening and we are in a firm Buyer's Market in all price ranges.
This update includes some of the most desirable communities in Central Ontario, encompassing Algonquin Highlands, The Archipelago, Bracebridge, Dysart et al, Georgian Bay Township, Gravenhurst, Highlands East, Huntsville, Lake of Bays, Minden, Muskoka Lakes, and Parry Sound.
The data is from the Canadian Real Estate Associations (CREA) latest quarterly report.
Waterfront Property Market Overview
Sales activity for waterfront properties declined significantly in Q1 2025. A total of 49 waterfront residential units were sold across the region—a 29% decrease compared to the same quarter in 2024.
Inventory levels for waterfront homes rose sharply. The months of inventory surged to 21.2 months, up from 10.2 months a year earlier. This indicates a considerable increase in supply relative to buyer demand, suggesting a shift toward a buyer's market in the waterfront segment.
Waterfront properties also took longer to sell, with the median number of days on market rising to 34 days in Q1 2025, compared to 23 days in Q1 2024.
Despite slower sales, pricing remained relatively stable. The median sale price for waterfront properties edged up 1% year-over-year, reaching $990,000—a reflection of the continued value placed on prime waterfront real estate in Muskoka. Eventually prices will probably succumb to the supply/demand pressures as they have been steadily increasing for some time.
Non-Waterfront Property Market Overview
The non-waterfront segment also softened during the first quarter of 2025. There were 139 residential non-waterfront sales, marking a significant decline from the same period in 2024.
Inventory in this segment increased slightly, with months of inventory rising to 6.4 (from 5.9 in Q1 2024), moving the market closer to balanced conditions.
Non-waterfront homes are spending more time on the market as well. The median days on market grew to 39 days, up from 29 days in the first quarter of the previous year.
In terms of pricing, the median sale price for non-waterfront residential properties fell 6.3% year-over-year, landing at $590,000. This price adjustment may offer opportunities for buyers seeking entry into the Muskoka market.
Waterfront Cottage Sales 2000 - 2025
Home Sales 2000 - 2025 | All Prices Ranges
Key Takeaways for Buyers & Sellers
Buyers: With increased inventory and more negotiating room, the current market presents opportunities—particularly in the non-waterfront segment where prices have softened. Waterfront buyers have more choice than in recent years but should act strategically, as quality properties remain in demand and, if priced properly, sell in a reasonably short period of time.
Sellers: Pricing accurately and preparing your home for market will be essential in the current climate. Homes are taking longer to sell, and competition is increasing—especially for waterfront listings. You need up-to-date statistics to know exactly where to price your property.
As always, local knowledge matters. If you're considering buying or selling in Muskoka, it’s essential to work with an agent who understands the nuances of this unique market. If you have any real estate questions you can call us at 705 783 7718 or email us here.
