First Quarter 2017 Market Update
The Muskoka residential market in the under $400,000 is on fire. Multiple offers and disappointed buyers that lose out in the offer process. Lack of supply and high buyer demand is keeping the heated market burning. This lack of inventory is having an impact on housing prices. With fewer homes for sale in the lower price ranges, buyers are contending with higher priced properties and hope they qualify for a higher mortgage. It is reasonable to expect Muskoka residential prices to continue increasing, but other factors may intervene to moderate this trend. For instance, buyers may be hesitant to participate in multiple offers and be caught in a bidding war. Also, qualifying for a mortgage based on a more expensive price point may eliminate a portion of buyers from the market.
In the cottage and recreational market the heavy snow load and continuing winter conditions have delayed marketing cottages and subsequently, buyers being able to get to the waterfront and preview the cottage. There have been a few reports of basic cottages in the under $300,000 range being purchased sight unseen. Crazy when one does not know the area or the waterfront, but the heated Toronto market psychology is telling those that want a bargain waterfront cottage to jump in fast. Discretionary purchases of waterfront are not driven by the same factors as residential purchases. Recreational purchases are the “want” versus the “need.” Waterfront in Muskoka and Lake of Bays is the most sought after waterfront in Ontario and prices will undoubtedly increase. However, recreational buyers are educated and savvy. They understand value and while anxious to purchase waterfront, will ensure they are making a wise financial decision.
Whether residential or recreational, the entry of new listings may reduce the inventory shortage and ease some of the strain in the system. As we move into the spring and early summer market, only time will tell.
To see Jay’s listings please visit the Featured Listings page.
Would you like to contact Jay? Email or call 705-571-2118
Would you like to read the 2016 Market Review?