Market
Market
Muskoka Real Estate | Q2 2025 Market Statistics
Residential Real Estate Market Muskoka & Area, Q2 2025
In the second quarter of 2025, a total of 338 non-waterfront residential properties were sold across the Muskoka & Area region. This marks a 12.2% decrease in sales volume compared to the same quarter in 2024, signaling a continued moderation in buyer activity across the region's inland markets.
The Muskoka & Area region includes a diverse mix of communities: Algonquin Highlands, The Archipelago, Bracebridge, Dysart et al, Georgian Bay Township, Gravenhurst, Highlands East, Huntsville, Lake of Bays, Minden, Muskoka Lakes, and Parry Sound. These areas are characterized by a range of property types, from rural family homes to small-town residences and recreational getaways, all contributing to the region’s distinct real estate landscape.
At the end of Q2 2025, months of inventory stood at 6.0, reflecting a marginal increase from 5.9 months at the end of Q2 2024. This metric—representing the amount of time it would take to sell all current listings at the existing pace of sales—suggests the market is shifting slightly toward a more balanced state, where neither buyers nor sellers hold a definitive advantage.
Interestingly, even as the market becomes more balanced, non-waterfront properties sold more quickly than they did a year ago. The median number of days on market fell to 24 days, down from 28 days in Q2 2024. This subtle but noteworthy decline points to continued demand for affordably priced, year-round residential homes in desirable inland locations.
The median sale price for non-waterfront residential properties across Muskoka & Area declined by 4.4% year-over-year, landing at $602,500 in the second quarter of 2025. While this softening in price reflects a more cautious buyer sentiment amid rising interest rates and economic uncertainty, the overall pricing still remains historically high compared to pre-pandemic levels.
Cottage Real Estate Market Muskoka & Area, Q2 2025
In the second quarter of 2025, 285 cottage properties were sold across Muskoka & Area, representing a 9.5% decline compared to the same period in 2024. This dip in sales suggests a market adjusting to current economic conditions, including higher borrowing costs and more selective buyer behaviour, particularly in the mid-priced cottages.
The Muskoka & Area region includes some of Ontario’s most sought-after waterfront communities, spanning Algonquin Highlands, The Archipelago, Bracebridge, Dysart et al, Georgian Bay Township, Gravenhurst, Highlands East, Huntsville, Lake of Bays, Minden, Muskoka Lakes, and Parry Sound. These areas are renowned for their pristine lakes, scenic landscapes, and high-end cottage and year-round waterfront properties.
At the end of Q2 2025, months of inventory for waterfront properties stood at 6.9, a noticeable improvement from 8.3 months at the same time in 2024. This decline in available supply relative to demand indicates a tightening market, where inventory is being absorbed at a faster pace and competition among buyers may be increasing in certain submarkets.
Reflecting this shift, waterfront homes & cottages sold slightly faster in Q2 2025. The median number of days on market dropped to 21 days, down from 25 days in the second quarter of 2024. While still modest, this quicker turnover suggests that well-priced, move-in-ready waterfront listings continue to attract serious buyers.
Despite the tighter conditions and faster sales, the median sale price for waterfront properties fell by 10.3% year-over-year, settling at $875,000 in Q2 2025. This decline points to ongoing price sensitivity among buyers, particularly in higher price brackets, and reflects a recalibration following the sharp price escalations seen during the pandemic-fueled boom.
Overall, while sales volume and pricing have softened, the improved absorption rate and shorter time on market indicate continued interest in Muskoka’s waterfront lifestyle—albeit in a more measured, value-conscious market.
