Thank you for taking the time to learn more about the real estate market in Muskoka and area. It’s my job to provide you with the right information for you to make an informed decision. The following charts will give you a quick look into the 2010 Muskoka Real Estate Market but don't hesitate to contact me if you would like more details.
The market sales volume has increased 4.7% over 2009 and all indications are to expect continued growth for 2011. However this is a less than the previous year where we realized +14.7% for 2009 over 2008. The market remained strong for the beginning of 2010 as consumer confidence remained optimistic. But as the year progressed consumer confidence wavered and the end of 2010 was more comparable to the drop in 2008. Which in my opinion will increase the demand on properties this spring with pent-up demand, as long as the economic news remains positive.
We have two different markets in Muskoka; single family residential and recreational properties. The recreational properties took the biggest hit in 2008 sales volume as a large amount of the discretionary spending was removed and everyone went into a holding pattern to see how Canada fairs thru the recession. As confidence grew and the thoughts that this reduction in pricing wouldn't last, it seemed the ideal time to purchase the waterfront cottage. The recreational market grew as the year progressed, Lake of Bays had their best July ever in 2009. In 2010 confidence in the Muskoka Lakes area continued with a rise of 7.4% in the average sale price for recreational properties, as seen in the graph below. However, Lake of Bays and Almaguin Highlands didn't realize these gains.
The residential market continues to decline slightly, but there's always a need for consumers to buy and sell homes, either to re-locate, down-sizing, etc., so therefore not subject to the volatile swings of the recreational properties where discretionary spending is usually associated with recreational properties.
I divided the recreational properties into three areas; Muskoka Lakes, Lake of Bays and Almaguin. These areas predominately sell recreational properties as opposed to residential. The Muskoka Lakes area has the highest average sale price, that's mostly because the three large lakes that consume the majority of the real estate transactions and therefore a more desirable location for most cottage buyers. The Muskoka Lakes market remains stronger than the other two with an average price increase 7.4% for 2010. Lake of Bays remains flat for another year, prices in this area have remained the same but volumes have decreased due to lack of willingness to adjust pricing to stimulate more activity. Almaguin, because of it's location north of Huntsville is still less desirable due to the distance you must travel from the main real estate investors in the GTA.
Above shows the larger lakes in our region and the average price for a recreational property. Interesting how Lake Muskoka, the largest lake in the area declined in the average price, it's evident that Lake Joseph and Rosseau are becoming a more desirable destination of the big three. Both Lake of Bays and Huntsville have remained relatively flat for 2010.
Lake Muskoka being the largest lake in the area has always had the most unit sales and had a 10% increase for 2010. The only other increase was on Lake Rosseau that realized a 36% increase in unit sales. Both Lake Rosseau and Lake Muskoka are now back to pre-recession levels.
Looking at the residential market all towns have realized a slight increase in average sale price, mostly stemming from a strong beginning of the year. Again, a strong last half of 2009 and beginning of 2010 can be the reason for this small increase (see below).
All residential markets had a decrease in unit sales but if this economy keeps chugging along we should see at a minimum flat line for 2011 due to the pent up demand from the sluggish end of 2010.
It's important to price your property correctly. As you can see above that on average only 32% of properties listed get sold and residential properties continue to take longer to sell.
When dealing in real estate, why not work with company that has the highest percentage of market share.