Last year I wrote an article on how I thought Covid would affect real estate in cottage country. I was completely wrong. My theory was a tanking economy = buyer anxiety = low demand coupled with high inventory would put us squarely in a Buyers Market. Instead what we got was and an unprecedented demand from folks wanting to leave urban centres and move to the cottage country. Though out 2020 there was a dwindling supply of properties and droves of buyers bidding on the few listings as they emerged.
Here’s a few interesting stats;
2020 Muskoka Parry Sound Cottage Sales
- Lake of Bays – 133 units up 52.9% over last year
- Muskoka Lakes – 82 units up a staggering 148.5%
- Parry Sound – 355 units up 13.8%
- Huntsville – 192 waterfront properties sold
- Bracebridge – 120 waterfront properties sold
- Gravenhurst – 138 waterfront properties sold
2020 Muskoka Parry Sound Residential Sales
- Bracebridge homes – 355 units down 3%
- Huntsville homes – 421 units up 6.3%
- Gravenhurst homes – 248 units up 48%
- Parry Sound region homes – 355 units down 7.3%
As you can see the demand for waterfront properties, whether it was vacant lakefront, fixer upper cottages or year-round waterfront homes was incredible. The number of days on market plummeted and the median selling price in most areas continued to climb. Multiple offer scenarios, once quite rare, became the norm and the concept of “holding back offers” became standard operating procedure. Great news if you’re selling but a nightmare for Buyers.
It’s too early to predict what the spring real estate market is going to look like but from what I’ve seen all indications point to continued strong demand and very low inventory. This will of course put pressure on prices and keep buyers scrambling.