The red-hot Muskoka real estate market appears to be cooling rapidly.
The number of waterfront sales in Muskoka has dropped nearly in half over last year, according to the latest figures from the local real estate association.
The Lakelands Association of Realtors recently released their latest statistics for home sales in the North region (which includes Muskoka) indicating drops in new listings and sales activity for August of 2022 compared with August of the previous year.
The most significant drop was in sales of waterfront property, which fell from 1,198 in August 2021 to 639 last month. Sales of non-waterfront property dropped from 1,106 to 819 during the same period.
New listings on the waterfront fell from 1,650 to 1,376 and non-waterfront listings dropped from 1,461 to 1,377.
Inventory has increased as well, with roughly 1.8 months of inventory on the non-waterfront side (up from 1.2 in 2021) and 3.3 months on the waterfront side (up from 1.7 in 2021).
Speaking in late August on the general trends of the market, Chuck Murney, President of the Lakelands Association of Realtors said increased inventory is certainly a welcome sign for potential buyers.
“Though the benchmark home price throughout the district is holding, the number of sales of residential waterfront and non-waterfront homes both dropped to well below average levels in July. Rising mortgage rates and wavering consumer sentiment continue to have a large impact on our local market. Inventory levels of residential and waterfront homes are up from rock bottom, which is a welcome sight given the limited selection over the past few years, ” said Murney. “New listings are still holding up well, although the growing divide between new supply and buyer demand suggests that sellers are lagging behind the market on pricing expectations. With the added inventory, prices have been moderating from their peak reached in the spring in part due to buyer affordability being reduced.”
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