Year-to-date, the number of non-waterfront homes sold in the Lakelands region (Meaford to Muskoka) is down about 34%
A transition in the housing market is expected to continue for “some time” as interest rates adjust and buyers and sellers revalue, according to a regional association of real estate agents.
“Many housing markets in the province and across the country are experiencing sustained downturns and ours was no exception in August,” said Chuck Murney, president of the Lakelands Association of Realtors, in A press release.
According to the Lakelands Association’s analysis of August home sales in the Lakelands region, which stretches from Meaford to Muskoka, 355 non-waterfront residential homes were sold last month, a reduction of 41% from August 2021 in the same region.
Waterfront home sales are also declining with approximately 44% fewer waterfront homes sold in August 2022 compared to 2021. The median price of a waterfront home in the area is around $890,000, down from $925,000 in August. 2021.
“Supply levels are rebounding from record lows and prices are retreating from their early spring highs, trends that we expect will continue through the end of the year as we have at least a another rate hike on the horizon,” Murney said in the press release.
Although fewer homes are being sold year over year, home values are not declining at the same rate.
The dollar value of non-waterfront home sales last month was $648 million, about 1.2% higher than August 2021. Year-to-date, the median price of a non-waterfront home waterfront in the area was $747,075, up 1.2% from the first eight months of 2021.
“Once interest rates stabilize, there will likely be a period of adjustment where buyers and sellers re-evaluate their positions on affordability and price expectations … so the housing market is going to be in transition for a while while this all continues,” Murney said.
The benchmark price for homes in the area has risen, with single-family homes in the Lakelands region worth around $746,200 (up 6% year-on-year), a townhouse worth approximately $657,900 (up 14.2%) and an apartment valued at approximately $512,500 (up 14%). All benchmark prices are calculated using the home price index and represent the estimated selling price someone could get for that type of home in the area.
Prices vary slightly by market, with prices being higher in the western part of the Lakelands region, including the Blue Mountains, Clearview, Collingwood, Gray Highlands, Meaford and Wasaga Beach.
In the western part of the region, 116 non-waterfront homes were sold in August 2022, compared to 212 homes sold in August 2021. The median price of non-waterfront residences in the region was $706,750 last month, compared to $730,000 in July 2021. .
There were 10 waterfront homes sold in the western part of the region last month, compared to 21 sold in August 2021. The median price of waterfront homes sold this month at $1.23 million, compared to $1.1 million dollars in August 2021.
In the central part of the region, including Midland, Orillia, Oro-Medonte, Penetanguishene, Ramara, Severn, Springwater, Tay and Tiny Township, 158 homes were sold last month, compared to 241 sold in August 2021.
The median price of homes sold in the central part of the region was $637,500 for non-waterfront and $900,000 for waterfront (27 waterfront homes sold last month).
In the North, including Muskoka, Parry Sound, Georgian Bay Township, Algonquin Highlands, there were 81 non-waterfront homes and 104 waterfront homes sold in August 2022, representing a decrease for both of approximately 45% from the August of last year. The median sale price in the north was $570,000 for non-residents (up 13%) and $855,000 for residents (up 2.6%).