Muskoka Market Watch – September 2018

Muskoka Market Watch – September 2018


Number of Listings and Sales

Unit Sales Volume – Summary of Waterfront Single Family MLS® Listings and Sales for the last 4 years by area as reported by The Lakelands Association of REALTORS® in the Muskoka Market.

Muskoka Market Watch Chart 1


Sales by Price Range

Summary of Waterfront Cottage MLS® Listings and Sales for the last 4 years by area and price range as reported by The Lakelands Association of REALTORS®

The Cottage Sales by Year and Price Range

*Lake of Bays, Mary Lake, Fairy Lake, Peninsula Lake, Vernon Lake



Christie’s Luxury Defined 2018 White Paper

Each year Christie’s International Real Estate produces a snapshot of what is going on the world of luxury real estate. This fascinating read gives an in-depth perspective on different markets across the continent and the planet. Most noteworthy, Muskoka is listed as the number 2 location worldwide for secondary residences.

You might find interesting the section on the

The upswing or downgrade of luxury real estate is affected by a variety of factors in different locations. Easy to follow infographics present each scenario clearly, subsequently scanning through is a simple matter rather than a chore. Enjoy!

CIRE White Paper 2018


This year we had the pleasure and privilege to attend the Christie’s International Luxury conference and discuss the world of luxury real estate and Muskoka’s place within it. You can see our adventures on our Facebook page.


Real Estate Market Update | Muskoka, January-June 2018

In June waterfront property sales made a strong recovery compared to the earlier months of 2018. In June waterfront property sales were down by only 7.7 percent compared to June last year. On a year-to-date basis, however, recreational cottage property sales in the Muskoka and area marketplace totalled 730 properties, a decline of more than 30 percent compared to 2017. Average prices during the same period increased by 8.1 percent but the Muskoka and area marketplace is varied, and there were many regional differences, particularly based on location, price point, and the availability of inventory. For example, year-over-year sales in Lake of Bays were down by 39 percent, 33 percent on Muskoka’s big lakes, and only 29 percent in the Haliburton region. All three regions are plagued by listing shortages, but the Haliburton region has the least months of inventory, followed by Lake of Bays and then by the Muskoka Lakes.


Overall months of inventory for the entire region for waterfront properties numbered a record low of 4.7 at the end of the second quarter of 2018, substantially lower than the 5.2 months of inventory available last year. It is not surprising that waterfront properties sold briskly in June.


The median number of days on market was only 24 days. Interestingly that is almost the same pace as sales in the greater Toronto area in June, which came in at 20 days. Days on market, however, once again belies the fact that days on market varied dramatically depending on price point and location.



Most of the sales activity took place for properties priced at $1.5 million or less. In this category, it was not uncommon to see multiple offers on well-priced properties. Conversely, sales of properties priced at $3 million or more are dramatically off this year, in some instances by more than 50 percent. For those properties that have sold the average sale price has increased by more than 6 percent compared to similar property sales last year. Buyers are clearly not prepared to pay the seller’s asking price. This phenomenon is also being experienced with higher priced properties in the greater Toronto area.


Looking specifically at Muskoka’s big lakes, average sale prices have declined on a year-over-year basis. Since 2014 average sale prices have continued to rise until 2018. At the end of June 2017, the average sale price for all properties priced at $500,000 or more reported sold on Lakes Muskoka, Rosseau and Joseph came in at $2,211,372. At the end of June this year the average sale price had dropped to $1,991,961, a decline of almost 10 percent. This decline is due to a multiple of factors, including a shortage of well-priced inventory, the introduction of the national mortgage interest stress testing, and the rise of mortgage interest rates.


The actual number of properties sold in this category is quite startling compared to last year. By the end of June 2017, 189 properties were reported sold in this category of recreational properties. This year that number has dwindled to 61, a decline of over 67 percent. An interesting point to note is that days on market over these two periods have remained unchanged at 61, an indication that buyers are still out there, but only for properties that are well priced.


Chestnut Park and its sales representatives continue to be involved in more listings and sales in the various areas where it has offices. At a pace that far exceeds the prevailing market. Year-to-date Chestnut Park has been involved in recreational property transaction totalling $129 Million, just slightly less than the sales achieved in 2017, a record year for sales by Chestnut Park sales representatives.


As reported at the end of the first quarter, the market appears to be driven by factors that have not played as an important a role as in the past. Inventory levels are being demographically driven. A significant segment of our society has acquired their recreational properties and because recreational properties do not trade like their urban counterparts, we are beginning to see less inventory and, of course, less trading than in urban centers. The cohort is known as the baby boomers, and although they do not exclusively account for the segment in question, they form a large, demanding part of it.

Going forward the key to a strengthening market will be pricing. Notwithstanding inventory shortages, for the reasons given above, buyers are much more deliberate and much more cautious in terms of the prices they will pay for recreational properties. Unless it is priced right, they will not buy.


Prepared by:

Chris Kapches, LLB, President and CEO, Broker

Eilean Gowan – Lake Muskoka

This outstanding Eilean Gowan Island oasis features 759 feet of water frontage
with fabulous sandy water entry which is fun for all
the little ones as well as the grandparents. Absolutely amazing!!!

There is a total of 2923 square feet of living space, which includes the upper level of
the boathouse boasting 900 sq. ft., and features south west, sunset views. The rocky
Georgian Bay style `windswept` point provides several outdoor sitting areas as well
as a fire pit for star and moon filled nights to create memories your family will talk
about for years to come.

The cottage is charming and cozy with a beautiful Muskoka room that allows for
screened-in dining, games and general fun with a sunset view…don’t miss out on
this fabulous feature!!! There are two boathouses to store your water toys and one
of them features a second story with 2 bedrooms, large living area and covered
deck. It is the perfect spot to hang out on a rainy day and the space is bright and

The year-round cottage is fully furnished with 4 bedrooms which has been
extremely well maintained. There is a lakeside sauna, plus an extra lot in case
you want to create a family compound. There are several marinas close by for a
short boat ride, depending which town you would like to be close to. This is a “must
see” island property for those buyers seeking large water frontage, privacy, island dotted view and capacity for a boat collection. It is simply divine!

The Setting:
We can assure you that here you will experience spectacular views with sun all
day long. Lounge on the various decks and docks with excellent privacy, enjoy
the sun, jump in the lake to cool off in the deeper water, lounge in the water
on a chair or play with the little ones in the shallower water front …whatever you
decide is your favourite pass time, you can do it here.

You have arrived to your special Muskoka property to make your new memories. ENJOY!!!