Muskoka Real Estate Market Analysis

MUSKOKA REAL ESTATE Q1 MARKET ANALYSIS

Priced to sit or to sell?

By: Susan Benson, Broker | Mark Benson, REALTOR® | April 11th, 2024 

Amidst cost of living increases, steady Bank rate, and consumer restraint, the recreational market is recovering - slowly.  

Year to date Q1 unit sales, average price, and inventory levels have all increased over the same time last year, across Muskoka, Haliburton and Parry Sound.  Waterfront unit sales activity is up 7.6%, non waterfront is up 25.7%, and waterfront inventory levels are at 10.8 months-an increase of 3 months since this time a year ago.  Q1 median days on market have declined slightly for waterfront and increased slightly for non waterfront property as compared with last year. 

We are in a market with improved choice and more typical price appreciation. There are occasional multiple offer events but rarely do they go over list price. 

So, what does this mean for Buyers and Sellers navigating the current Muskoka real estate market? 

What the Current Market Means for Sellers

As reported last month, for sellers of waterfront in particular, opportunity will come as there is more widespread acceptance of this new pricing level to drive more sales volume. As Sellers settle on a listing price strategy in 2024 there are a few takeaways to keep in mind. 

1. Lakelands North Waterfront Inventory Levels are approaching prepandemic levels.  Q1 new listings increased by 79% (468 properties) as compared with Q1 last year. Listings that were rejected by the market last year are facing increased competition from newer listings. Generally, those listings that were rejected by the 2023 market are being reintroduced at lower listing prices - and selling. Correct pricing in the waterfront market will be critical to a successful sale. For those relisting within 3 years of purchase cost recovery is unlikely.

GRAPH: Muskoka Region Active Listings & Sales Q1 2021-2024

Muskoka Waterfront Real Estate Inventory 2020-2023

Source: Muskoka Region Proprietary Research Royal LePage Lakes of Muskoka Brokerage | MLS  Jan-March 2024

GRAPH: Muskoka Region Historical Sales by Quarter 2000-2024

Source: Muskoka Region Proprietary Research Royal LePage Lakes of Muskoka Brokerage | MLS  Jan-March 2024

2. Muskoka Waterfront Sales 2000-2024: 2023 saw the lowest unit sales in over 20 years so inventory has accumulated as you can see from the above graph. 

3. Muskoka Waterfront Pricing in 2024. Listing price strategy has to be bang on. Properties purchased prior to 2022 will have likely appreciated while those  purchased late 2022 - early 2023, and especially in a multiple offer event, may be worth less. 

What the Current Market Means for Buyers 

We expect the 2024 market to provide Buyers with more confidence that prices are unlikely to decline further, and that interest rates will stabilise following an expected small downward adjustment later this year. The fear in 2023 was that buyers might save more money by waiting. Added to this we expect there to be more choice as Sellers grow more confident that they won't make more money by waiting. Given that new  listings will generally be better aligned with the current market, Buyer strategy for offers on these listings should know that a low ball offer is unlikely to result in a meeting of the minds. 

WATERFRONT HIGHLIGHTS 

  • Highest Priced 2024 Muskoka Waterfront Listing: $29,995,000. Contact us to arrange a personal tour of this 9,700 sq ft, 9 bedroom, 8 bathroom, family compound on Fawn Island, Lake Joseph.
  • Highest 2024 Sold Price in Muskoka:  $6,495,000  1262 Dawson Road, Lake Rosseau, Township of Muskoka Lakes.   This new listing sold for 100% of list price.

NON-WATERFRONT HIGHLIGHTS 

Source: Muskoka Region, Royal LePage proprietary research | MLS | Jan - Mar 2024.

  • Highest priced 2024 Muskoka Active: Offered at $3,400,000 at 1040 Skeleton Lake Road #1. This property started last year at $4,250,000. Contact us to arrange your personal tour of this 6,800 sq ft, 3 bedroom, 6 bathroom, 100 acre estate in the Township of Muskoka Lakes. 

  • Highest Priced Muskoka Sale in 2024: 11 Nature's Way, Huntsville. 3,600 sq ft, 4 bedroom, 3 bathroom. Originally listed for $2,200,000 in 2023, price reduced in January 2024 to $1,995,000 and sold for $1,925,000.

The latest survey of Recreational Property Market experts across Canada, including Mark and Susan Benson, show a 2024 revival  read on>

Thinking about adding or changing up your Muskoka property investments? Contact us now for help with your next steps. susan@markbenson.ca

*SOURCE: As at April 1st unless otherwise noted. Our reports are prepared using a variety of resources, including Royal LePage Canada proprietary research, The Canadian Real Estate Association MLS, The Lakelands Association of Realtors; Lakelands North (Haliburton, Muskoka, Georgian Bay, Archipelago, Parry Sound, Severn), Statistics Canada.


PROPERTY MATCHMAKER

We have some more very happy Buyers and Sellers thanks to the ongoing response to our property match-making efforts over the last few months.  

If you know someone who is thinking about selling, and who isn't already working with a realtor, we would love an opportunity to speak with them about the real estate market and options that are available to them.

FEATURED SELLERS: MUSKOKA BAY CLUB RESORT AND NEIGHICK LAKE

66 Carrick Trail, Muskoka Bay Club Muskoka Bay Club 66 Carrick Trail

We've helped many buyers and sellers at Muskoka Bay Resort over the years - so we know when something special comes along.  Overlooking a spectacular 12th Fairway vista, this 2900 sq ft, architecturally designed, 3 bedroom, 4 bathroom open concept Luxury Villa is positioned within a lightly landscaped woodland ravine and 800+ acre resort locale. Originally purchased as part of the incomparable Freed Muskoka Luxury Villa Townhomes first release, this series would set the stage for all subsequent releases - while remaining unrivalled in its presentation of space and design. Offered at $899,000. Contact Susan to arrange your private showing. 

1136 Lakeside Trail, Neighick Lake

1136 Lakeside Trail

It's refreshing to head just a little north of Muskoka where the trees thicken, the crowds thin, and you can find a nicely priced, year round cottage with 156' of shoreline and over an acre of woodland privacy.  Built on the shores of Neighick Lake (aka Beaver Lake) near the picturesque Village of Magnetawan, this 3 bedroom 2 bathroom lakeside home occupies an elevated position with western exposure on the second in a chain of 5 lakes leading to Burk's Falls. 1500 sq ft of living space unfolds over two levels, with an open plan that is ideal for entertaining friends and family.  Walkout from both living room to open deck, and lower level family room to outdoor terrace.  An acre+ of woodland adds privacy between neighbours, while keeping an open view and level play areas toward the lake. Plus, that quintessential evening element around which close family and friends bond on a starlit evening - the fire pit. Guitar anyone? Call now to arrange your personal tour.

FEATURED BUYERS

Muskoka Cottage: Family seeking to upgrade to Lake Rosseau, Joseph or Muskoka. Open view a must.

Muskoka Home: Retired empty nesters moving from the famed "Toronto C4" neighbourhood to Muskoka. Seeking the Taj Mahal of rural homes on acreage close to Bracebridge amenities. 

Why sell with Mark and Susan? 

LET'S SET UP A TIME TO CHAT! susan@markbenson.ca

Mortgage Tips in a Changing Market Here


FEATURED CLIENT QUESTIONS

This month our featured suggestion from friends, family and our real estate network is "Beyond Staging what will Get me the Most $ for my Property?",  What does Open Bidding in Real Estate Mean to Me?  Plus you can also check out all of our blogs including "What is an Exclusive Listing?" and "What do I do with my Fireplace Ashes?" Have a question for us - simply send us an email or gie us a call and we will feature it in an upcoming blog! 

FEATURED EVENTS

Stay tuned as we regularly update not to be missed upcoming events  including the Muskoka Lakes Association Planning Webinar, 18th Annual Baysville Community Yard Sale, The Bifocals Spring Concert, plus the never to be missed Windermere Pancake Social.  (click here).

℗ ⓒ Copyright SymbolCopyright Mark Benson and Susan Benson 2024