Tag: Real Estate

Real Estate Market Report | Muskoka, January – March, 2017

Chestnut Park News

APRIL 18, 2017
Muskoka Real Estate Update

 

As 2016 came to an end, the concern in the Muskoka and area recreational market place could be summed up in one word: supply. The lack of supply has become dramatically obvious in the first three months of 2017. Generally supply is limited during the early months of any year. Weather conditions, inability to access properties, and the disinterest of buyers usually means that recreational properties are not brought to market until April or even later. This report acknowledges that market phenomenon, and is simply comparing what was happening in 2016 against the first three months of 2017.

 

The Muskoka-Haliburton Realtor Association reports that during the first three months of 2017 it processed 1815 listings of all types. This is a decline of 15 percent compared to 2131 listings that were submitted by local realtors during the same period in 2016. The decline in recreational inventory is even more startling. At the end of March the Association reported 439 active recreational property listings, a decline of more than 40 percent compared to the 751 recreational property listings on the market last year.

 

The situation is even more dramatic in 2 of the three market places in which Chestnut Park’s agents are active. On Muskoka’s big lakes (Rosseau, Joe, and Muskoka) there were only 103 active listings at the end of March, a decline of almost 50 percent compared to the 200 active listings available to buyers last year. The situation in the Haliburton Highlands is no different. Last year there were 193 active listings, this year only 103, a decline of 47 percent. Although listings are down in Lake of Bays the decline is not as extreme as in Muskoka’s big lakes and the Haliburton Highlands. This year there were 59 active listings, last year 83, comparatively a moderate decline of 30 percent.

 

At this stage of the year we have limited recreational property sales data. What we do have does not indicate that there is a corresponding decline in demand. The Association reports that 101 recreational properties have been reported sold year-to-date, an increase of 15 percent compared to the 88 reported sold last year. On the big lakes there has been a marginal increase in sales: 21 this year compared to 19 last year. Sales activity in the Haliburton Highlands is marginally down: 27 last year, 25 this year. Only Lake of Bays has shown an appreciable increase in sales, although the actual numbers are small: 12 reported sales this year compared to 9 last year, an increase of 30 percent.

 

During the first three months of 2017 Chestnut Park’s agents were responsible for 25 recreational property sales, representing $27,875,500 in dollar volume. This result is our highest number of reported sales during this period in the year, and by far the highest dollar volume ever achieved. These numbers also demonstrate that demand remains strong. The next best year for sales was in 2012 and for dollar volume it was last year.

What to expect:

Unless something dramatic happens we can anticipate a very tight recreational market as 2017 continues to unfold. As forecast in the year-end report, we will begin to see competition for well priced, desirable properties.

 

That competition will not amount to the frenzied activity that has become the norm in urban environments like Toronto, but multiple offers will not be uncommon. This is brought out by the fact that agents have already experienced the multiple offer phenomenon on new listings and when acting for buyers.

 

The unknown factor that may have an impact on the Muskoka real estate market place will be the provincial government’s reaction to the runaway prices for properties in Toronto and area. The prevailing belief is that foreign investors and speculation are fuelling price increases. Legislation by the provincial government in either or both of these areas could have a cooling effect on recreational markets, even if the effect is due to a wait-and-see stance by buyers. Unfortunately by the time the impact of the tax is absorbed by consumers, the major part of the recreational selling season will be at an end. It is anticipated that the province will move to deal with exorbitantly rising prices in Toronto and area by late April or May.

 

Prepared by:Chris Kapches, LLB, President and CEO, Broker

 

 

Muskoka Real Estate Update / Jan-Dec 2016

Cottage-winter-sunrise-Huntsville-Susan-Brown
JANUARY 19, 2017

2016 was a remarkable year for recreational property sales in Muskoka and nearby seasonal markets. It is difficult to pinpoint the reason for this increase in sales activity. 2016 was the second year in a row that saw sales grow fairly dramatically. Some of the factors at play are the following.

Firstly, the Muskoka and area market place is in close proximity to the greater Toronto area. Sales of residential resale properties in the greater Toronto area have, in the last two years, exploded. Sales have been strong in all price points, including the high-end properties (properties having a value exceeding $2 Million). Prices have correspondingly also increased, creating an urgency to get into the market. Real estate has come to be viewed as an asset that will ensure that buyers are not outdistanced by the ever-increasing value of resale properties. In the greater Toronto area residential property values increased by 20 percent in 2016 alone. In addition, there is a strong belief, supported anecdotally and statistically, that the market will remain strong, especially real estate values.

This prevailing attitude is no doubt behind the rising sales of recreational properties, not only in the Muskoka and related market places, but even further afield. Ironically, the increase in sales volume is having a dramatic impact on supply, consistent with the urban market experience. For example, at the end of December, the Toronto and area market place had 50 percent fewer listings than at December 2015. That is unprecedented. The recreational market place is beginning to mirror Toronto.

Supply will, although not to the same extent, become a concern in recreational markets. In 2016 the Association that manages listings for the Muskoka, Haliburton and Orillia market places published the following statistics. In 2015 the association processed 10,149 properties of all types on its multiple listing service. In 2016 that number decreased to only 8,976, a sharp decline of over 11 percent. At the end of December, there were 1466 active listings. At the end of December 2015 there were 2,290, a decline of almost 36 percent. The recreational property supply has also diminished in a startling way. At the end of December there were only 423 recreational properties available for sale. One might assume that since the recreational market is not active in the winter months that there is nothing exceptional about this number. However, when compared to 2015, it does give rise to some concern. Last year there were 656 properties available for sale. A decline of more than 35 percent is remarkable, even in the slowest season of the year for recreational property sales.

Except for Lake of Bays sales of recreational properties were strong in 2016. The Association reported that there were 1301 recreational properties sold in 2016. This compares with only 1098 in 2015, an increase of almost 20 percent. In 2014 there were only 890 reported sales.
The strongest recreational market place in 2016 was the Muskoka big lakes, Lake Rosseau, Joe and Muskoka. There were 350 reported sales on the big lakes, a 20 percent increase compared to the 291 sales in 2015, and a remarkable 32 percent increase compared to the 266 sales in 2014. What makes these sales eye- catching is the fact that the most expensive recreational properties in the region are located on the big lakes.

There was a considerable increase in activity in 2016 on Muskoka’s big lakes for properties having a value of $2 Million or more. In 2016 there were 21 sales in this category on the Lake Joe. The average sale price for these properties was $3,960,142. These 21 recreational properties sold in 95 days following their list date, and they sold for 95 percent of their original asking price. In 2015 there were only 14 sales in this category on Lake Joe. Although there were substantially fewer sales, the average sale price for the reported sales of these recreational properties was $4,512,564. They sold in just 58 days, but at 93 percent of their asking price.

On Lake Muskoka there were 20 reported sales in this category. The average sale price was $2,971,000. These recreational properties sold in 81 days following their list date, and they sold for 97 percent of their original asking price. In 2015 there were 18 sales on Lake Muskoka. The average sale price was $3,585,805.

They sold in 74 days at 94 percent of their original asking price.

In 2016 there were 24 sales of recreational properties that sold for $2 Million or more on Lake Rosseau. The average sale price of these properties was $3,533,250. They sold in 63 days and at 95 percent of their asking price. In 2015 there were only 10 sales in this category. Their average sale price was $3,093,863.

They sold in 140 days and at 94 percent of their asking price.

Clearly sales improved dramatically on the big lakes year over year in the $2 Million plus category. In 2016 there were a total of 65 sales. In 2015 there were only 42, an increase of 55 percent. The highest sale price was achieved on Lake Rosseau at $11,400,000. Unfortunately, it is difficult to determine an average increase in price year-over-year. Sales prices vary depending on location, elevation, exposure, water levels and more. Based on all the available data it is safe to say that prices increased between 5 to 10 percent in 2016 as compared to 2015.

Sales increased in the Haliburton region. There were 366 properties reported sold in all of 2016. This compares very favorably to the 319 sales in 2015, a 13 percent increase. The increase in sales is even more dramatic when compared to 2014. In 2014 there were only 246 sales of recreational properties in the region, an increase of almost 50 percent.

Lake of Bays appears to be out of sync with the overall market place. While the Muskoka Lakes and the Haliburton Highlands had double digit increases in sales year-over-year, the increase in sales in Lake of Bays was marginal. In 2016, 119 recreational properties were reported sold, a less impressive 5 percent increase. The reason why Lake of Bays did not produce as strong a positive variance that other regions did is due more to supply than demand.

Chestnut Park continues to be the market leader in Muskoka. Chestnut Park’s Port Carling office exceeded the dollar volume of sales of its closest competitor brokerage office by 78 percent. 2016 was Chestnut Park’s most successful year in serving its buyer and seller clients.

As 2017 begins we anticipate that the supply of recreational properties will become the market’s major concern. Urban markets, particularly the greater Toronto area, began experiencing shortages during the later half of 2015 and throughout 2016. As we enter the new year the lack of inventory has become critical. Although this is not yet the case in Muskoka and area, it appears to be heading in that direction. Unless a plethora of new listings come to market in the spring, we can anticipate substantial price increases, and multiple o ers on properties as a regular occurrence.

prepared by: Chris Kapches, LLB, President and CEO, Broker

(photo is provided by Susan Brown)

Waterfront sales “Best year-to-date”

Sales of waterfront properties recorded through the MLS® system of Muskoka Haliburton Orillia – The Lakelands Association of REALTORS®, declined by 14 per cent in October 2016, albeit from a record last October.

On a year-to-date basis waterfront sales were still up 11.8 per cent from the first nine months of 2015. This was the best first 10 months to any year on record.

 

“While waterfront property sales took a step down from last October they are still very strong, with much of that year-over-year decline simply reflecting the white hot pace of sales at this time last year when there were still many more properties for sale on the market,” said Mike Taylor, President of Muskoka Haliburton Orillia – The Lakelands Association of REALTORS®. “Having said all that, the bigger picture is that 2016 will, in all likelihood, be the best year ever for sales in the Lakelands region.”

The median price for residential non-waterfront property sales was $250,000 in October 2016, up 9.6 per cent from October 2015. On a year-to-date basis the median price was running at $255,000, up 8.5 per cent from the first 10 months of 2015.

The median price for waterfront sales in October 2016 showed an increase of 13 per cent from October 2015. On a year-to-date basis the median price for waterfront property sales was up 9.5 per cent from the first 10 months of 2015.

The total value of waterfront sales was $101 million, an increase of 16.8 per cent from October of last year. This was the highest level for October on record and marked the first time volumes had ever surpassed $100 million in this month.

Includes transactions in all areas recorded by Muskoka Haliburton Orillia – The Lakelands Association of REALTORS®

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Important information The area served by the more than 680 REALTORS® who belong to Muskoka Haliburton Orillia – The Lakelands Association of REALTORS® serving Muskoka, Haliburton and Orillia, is located less than a two-hour drive north of Toronto, in the heart of Canada’s Cottage Country. There are several major geographical areas within the Association’s boundaries, including the City of Orillia, Gravenhurst, Bracebridge, Muskoka Lakes, Huntsville, Almaguin Highlands, Lake of Bays and Haliburton. Each of these areas has a unique blend of properties ranging from residential homes in the City of Orillia and smaller towns to the rural areas in-between, as well as a mix of waterfront homes/cottages on the many rivers and lakes throughout our regions that range from the smaller entry level properties to the prestigious.

Waterfront sales post strong gains in July

Sales of waterfront properties recorded through the MLS® system of Muskoka Haliburton Orillia rose 11.2 per cent year-over-year to 269 units in July 2016.
On a year-to-date basis waterfront sales were up 25.2 percent from the first seven months of 2015. This was the best start to any year on record.
“With residential non-waterfront and waterfront sales coming in very strong in July, the combination of both property types rising in tandem really boosted the overall year-over-year sales increase in the region,” said Mike Taylor, President of Muskoka Haliburton Orillia – The Lakelands Association of REALTORS®. “That said, it was the waterfront segment that actually had the better month in July. While non-waterfront activity did mark the best July in more than a decade, waterfront sales actually set a new all-time record for July.”

The median price for waterfront sales saw an increase of 17.8 per cent from July 2015.

The total value of waterfront sales was $155.2 million, rising 18.4 per cent from July of last year. This was the highest level of any July on record.

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Includes transactions in all areas recorded by Muskoka Haliburton Orillia – The Lakelands Association of REALTORS®

musk_chart04_hi-res (2)

musk_chart05_hi-res (1)

Includes transactions in all areas recorded by Muskoka Haliburton Orillia – The Lakelands Association of REALTORS®

Important information
The area served by the more than 680 REALTORS® who belong to Muskoka Haliburton Orillia – The Lakelands Association of REALTORS® serving Muskoka, Haliburton and Orillia, is located less than a two-hour drive north of Toronto, in the heart of Canada’s Cottage Country. There are several major geographical areas within the Association’s boundaries, including the City of Orillia, Gravenhurst, Bracebridge, Muskoka Lakes, Huntsville, Almaguin Highlands, Lake of Bays and Haliburton. Each of these areas has a unique blend of properties ranging from residential homes in the City of Orillia and smaller towns to the rural areas in-between, as well as a mix of waterfront homes/cottages on the many rivers and lakes throughout our regions that range from the smaller entry level properties to the prestigious.

Port Carling Nurse Practitioner Station is a Big Step Closer

Muskoka Lakes Nursing Station Chair Allen Edwards has?announced more great news for the Brock and Willa Wellness Centre.

Harry and Mary Ann Debes and their family foundation are donating a half a million dollars to the Nursing Station.?The?Debes Family became interested in the Nursing Station after?last years Muskoka Comedy Gala?for the Brock & Willa Wellness Centre and started looking into it closely.

We need such a facility in the Port Carling area and a few years ago Linda and Allen Edwards started working towards this cause. Last May the project received a real boost with a generous donation of land and money by Brock and Willa Napier. Today my wife Mary Ann and I are happy to play our part. Last Friday, through our Foundation, we donated $500,000 to help realize this dream something that will help our community for generations to come. For those to whom much is given, much is expected.? said Harry Debes, to a group at the new wellness site.

THE ADVANTAGES OF HAVING THE 3 MAIN COMPONENTS INCLUDED IN THE BROCK & WILLA WELLNESS CENTRE ARE:

Why is it needed & advantages?

  • It fits in with the Ministry of Health & Long-Term Care and the North Simcoe Muskoka LHIN for the Health Links initiative.
  • The Lions seniors residence will have easy access to Primary Health Care at the Nursing Station
  • The Nurse Practitioner can go over to the seniors residence and do health programs
  • Andys House, Hospice Muskoka will help people pass away with dignity in their home community
  • Hopefully in the plans, there will be space in Andys House for people who are discharged from the hospital and are going home to an empty residence.? The Hospice hopes to have 1 or 2 rooms that could be used for up to 48 hours a stay of this nature

Where is it located & why:

  • The property is located right in the heart of Port Carling
  • The 3 projects will have the benefit of municipal water & sewer
  • Steps away from Foodland, Subway, Tim Hortons, as well as all the other amenities of Port Carling

What are the common areas and/or services that will be used by all 3 main components?

  • The seniors residence will have a Community Room w/ kitchen to be available to the residents, as well as the outside community will have an opportunity to rent the Room.?? They are also hoping to have a Fitness Room.
  • All 3 components will have access to a park like setting with future walkways & boardwalk and a gazebo overlooking the Indian River.
  • There is a Municipal public dock that people can come by boat to any of the 3 components.

DESTINED TO BECOME A HUB OF HEALTH AND WELLNESS!

A Port Carling property donated by Brock and Willa Napier will house the Brock and Willa Wellness Centre.? Planning and fundraising are well underway for this innovative community hub that is intended to house a future Port Carling nursing station, a seniors residence, on behalf of the Port Carling Lions Club, and Andys Place, a palliative care facility through partnership of the Andy Potts Memorial Fund and Hospice Muskoka.

Why you need a Realtor more than ever in the internet age

These days, there are more options than ever when it comes to buying or selling a home. It seems a new website, or sale-by-owner service is popping up every week. And while there is most certainly room for technology, progress, and a fresh approach within the real estate industry, this inevitably creates a lot of noise out there cluttering up your decision making process.

Now may be one of the most important times to look to a professional Realtor to cut through all of that noise and make the business of buying or selling your home a stress-free proposition. Our mission at Chestnut Park is to guide you through this process with the least interruption to you and your familys daily life; this is the value and service a Realtor can provide that the internet simply cannot.

Data Analysis
The internet has revolutionized the real estate industry, and we certainly are thankful for all that it has provided from sharing listing information quickly and easily with our clients, to communicating with the office from the road. But with all of this free-flowing information, there becomes an endless well of data. Average home prices, inventory per neighbourhood, school rankings, etc. Sure, the information is all out there, but are you reading and analyzing it properly? A professional Realtor is trained to know exactly what data is relevant to your purchase or sale, and exactly how it applies to you.

Local Knowledge
The web is in fact, a fantastic place to begin research when wanting more information on a particular neighbourhood; from schools, to demographics, to walkability and lifestyle. And while there is a wealth of knowledge to be found online, including local forums and message boards, there is no substitute for a Realtor who has worked (and in many cases lived) in a particular area for their entire career. Not only will they have the inside scoop on all the neighbourhood quirks, but they will be able to share hard facts about the local real estate market specifically.

Pricing
If you are a homeowner, chances are you have a fairly good idea of what your home is (or should be worth) based on things like what you bought the home for, how long youve owned it, how much (if any) work you have put into it, how much your next door neighbour just sold for, etc. But when it comes to selling your home, timing (and what the market will bear at that exact timing) is everything. A qualified Realtor will guide you through the pricing process by analyzing myriad variables such as comparable home prices, current interest rates, level of inventory, interest in your neighbourhood and/or school district and much more.

Hunting & Gathering
If you are looking to buy a new home, the hunting and gathering stage is where a Realtor will save you the most time and energy. Instead of trolling online daily looking for a property that will suit your needs, your Realtor will take this step off your plate, comparing and contrasting whats out there, and sending you only what they know will work for your needs. A Realtor also has access within their own network to homes that may not yet be on the market. As for selling, a professional Realtor will come up with creative solutions to lure qualified buyers to your property. Which brings us to

Marketing
When it comes to selling your home, marketing is perhaps one of the most important aspects in the process. How will you maximize the best offers if people dont even know that your home is for sale? A Realtor will work night and day to market your home in the right way, from open houses to online and print ads, to wild and creative options to showcase your property in the right light.

Dispelling Myths
Much like planning a wedding, or having a baby, buying or selling a home brings unsolicited advice and personal anecdotes out of the woodwork. Your neighbour may be convinced that home values in your area have gone up 10% since you bought, and your cousin may be insisting that you hold out until spring to list your home, but only a Realtor will be able to give you the inside info on what will or wont work for your particular circumstances.

Connections
When it comes down to the transaction of buying and/or selling your home, there can tend to be a lot of moving parts. From real estate lawyers, to home inspectors, and stagers to contractors, your Realtor is plugged in to a community of other professionals who support and enhance the real estate industry.

Top Tips for Renting Out Your Cottage This Summer

As the last of the snow melts around the province, Ontarians are beginning to shed those winter layers and think about the best season of all cottage season! If you own a cottage or country property that you are looking to rent out for all or part of the summer, the time to list it is now! So grab your Realtor, and get started on that rental ad. Here are just a few tips to get you started

Find a local Realtor
When it comes to listing, selling, and negotiating the rental agreement for your cottage property, you are going to want to work with a local agent who has a great knowledge of the area and the ability to meet potential renters to show the property. We have a fabulous team of seasoned agents in markets all around Ontario, including Muskoka, Lake of Bays, South Georgian Bay, Thousand Islands, Port Hope, Prince Edward County, Caledon and more!

Expose your property to the right audience
With the help of your Realtor, narrow down a list of some of the best sites to post your rental, keeping a keen eye on who your potential renters will be. Are you advertising your luxury family compound on Lake Joseph, or a quaint cabin in Creemore? Some, like CottageCountry.com, will charge a fee, some are completely free, like Kijiji.

Write a thrilling and thorough description
Of all the fabulous features of your cottage, potential renters will only know as much as you can tell them in a listing advertisement. Make sure that your property description is attention-grabbing, well written, and includes all pertinent information. Once again, your Realtor will be instrumental in helping to put this together.

Its all in the details
Entice renters and cut down on a lot of back-and-forth emails by providing every last detail you can about the property; from number of bedrooms, to included appliances, to square footage, and beyond. The more information you provide, the more qualified inquiries you will receive on your property.

Be a tour guide for the area
Along with all the precise details about the property itself, dont forget to mention the highlights of the region where your cottage is. Are you close to a town with restaurants and other amenities? Does your lake hold a sailing regatta? Do the surrounding hills provide excellent hiking and bike trails? Make sure to paint a picture about how the property and its surrounding area might be enjoyed.

High quality photos
A picture is worth a thousand words, so they say, and this could not be more true when it comes to listing a rental property. Many potential renters will skip right over an ad if it contains too few, or low quality images. Make sure to showcase every angle of the property with high quality, professional images.

Feature image via Georgina Ratcliffe, Chestnut Park Real Estate Ltd.

Real Estate Q & A: Chestnut Park VP of Operations and Broker, Justine Deluce Shares Her Tips on How to Choose the Right Agent

Justine DeluceWhen it comes to buying or selling your home, choosing?the right real estate agent becomes an integral part of?the process. While the sale or purchase of your biggest?financial asset can be an exciting time, it can also be?stressful especially if someone who is not the right agent?for the job is representing you. Here are a few tips to help you?find the right agent.?Chesnut Park VP of Operations and Broker, Justine Deluce shares a few tips to help you find the right agent for you.

 

 

Take the time to interview your candidates. It is important to?meet with different agents to determine which one is the right?one for the job. This provides the opportunity to ask whom?you are considering to hire a number of questions about the?services he or she offers. If you are selling, find out how the?property is priced, how it will be marketed and what the fees?are. If you are buying, ask the agents you are interviewing how?well they know the areas you are interested in and what the?process will entail.

 

Get a second opinion. Once you have narrowed down your?search, request a few references. Like any job interview,?references are an important part in determining which agent?is right for you. Most will be more than happy to provide the?names of a few buyers and sellers they have worked with. It?will be worth your time to follow-up with them.

 

Team up with someone you like! Buying or selling a house?can be a worrisome process. Working with an individual that?you get along with and trust can make the process far more?enjoyable. Your agent is someone you may be spending a lot of?time with and revealing potentially sensitive information to,?so getting along with him or her is key.

 

Location, location,. One of the most important considerations?when choosing an agent is to ensure that they have a good?knowledge of the area you are selling or buying in. Determining?price and understanding the nuances of different areas are?part of the value your agent is adding to the buying or selling?process. A well-connected local agent will have access to?information that may not be be readily available online. This?can create a competitive advantage for clients.