Well, here we are in the final quarter of 2022, a year that is shaping up to be much different than the past two years in Muskoka real estate. 2021 was a banner year for the waterfront market due to low inventory and a flurry of buyers, thereby driving up prices to levels never seen before in our market. Many buyers focused solely on their cottage search as Covid restrictions limited travel and other recreational activities. The low inventory was a result of many cottage owners using their cottages like never before – grateful to be able to work from home while enjoying waterfront cottage living. Many potential sellers decided to hold onto their cottages for one more season. Prices climbed as multiple offers were submitted on each property – many buyers and few cottages to offer on. 

Spring 2022 brought a calmer vibe to our real estate market as Muskoka slowly followed the buying pattern seen in Toronto. As Covid restrictions lifted, buyers started to focus on other priorities, and this was reflected in cottages taking longer to sell and less multiple offers on listings. As interest rates increased and the stock market became more volatile, many buyers decided to take a breath and enjoy their post Covid summer. Although prices dipped below peak 2021 levels, they remained stronger than prices in 2018-2020.

We are now in a more balanced market in Muskoka wherein inventory is slowly increasing, giving buyers more selection and less competition. Buyers have more time to make a purchasing decision and can include conditions in their offers unlike in years past. Prices are beginning to soften, with the average sold price topping off at around 100 percent to list vs 113 percent in 2021. Historically, the average has been around 95 percent of list in Muskoka. Buyers know that a cottage in Muskoka is still a solid investment and demand for waterfront will always be stable. For those looking to buy on the Big 3, demand will always be strong.

If you are looking to sell in this current market, a strong pricing strategy is more important than ever. There are still many buyers who see value in a well-priced property. Sellers who understand that the market is now shifting towards a more balanced market are able to sell their cottage quickly when it is priced appropriately.  Working with a local realtor who is knowledgeable about current market trends is key. 

Give me a call to chat more about the waterfront market in Muskoka: 416.989.5851