Most of us in Muskoka are aware that houses and cottages are selling for higher-than-expected prices. In fact, many homes are having BIDDING WARS with 2 or 3 Buyers wanting the same property, and paying more than the listing price for it! The average sale price for a year round home in Gravenhurst jumped $40,000 since 2015. Bracebridge jumped $18,000 and Huntsville jumped $12,000. The closer to Orillia/Barrie, the higher the average bump in property value.
Why is this happening? The answer is "Toronto". When talking to other agents and brokers in Toronto and Barrie, the main complaint is "There's not enough inventory!" --meaning not enough houses and condos for sale to meet Buyer demands. This Home Sales graph (below) shows the growth from 1989 to 2016 in Canadian Home Sales --an average of $536,000 for a single family home. The highest in 25 years! Toronto is still considered UNDERPRICED by international Buyers. European and Asian buyers see Toronto & Vancouver as international cities that are INEXPENSIVE compared to other world cities. They will buy real estate as long as that is true. Many Canadians that are living and working in Toronto and Surrounding areas are paying massive dollars for a regular home, and many are borrowing against their home equity while it is so high. However, others are choosing a "Cash out - Move out" strategy. They are selling their Greater Toronto Area property, and moving north to less expensive areas. Barrie property values have sky-rocketed due to buyers from Toronto. Orillia and Muskoka have seen similar jumps in sale prices for the exact same reason. People are buying cottages and recreational properties, and choosing to stay living in a condo, enjoying land, fresh air, and space on the weekend.