If Muskoka does not quit, the Kawarthas will launch their fiercest competition in the cottage real estate business.
While the number of homes sold through the Kawartha Lakes Real Estate Association’s MLS system in March did not quite hit the 210 in Muskoka, the area has almost 197 homes, according to new data from CREA.
This more than doubles the region’s levels as of March 2020, showing an increase of 105.2%. The number of new listings released during the month also posted solid gains, rising 69.6% year-on-year to a total of 273.
READ: Total dollar value of waterfront sales in Muskoka soars, up 438% in March
At the end of March, active residential listings totaled 133 units, a sharp drop of 52.8% from the same month last year. In fact, according to ACI, active registrations have not been so low in the region for over 30 years.
Inventory Months (MOI) – or the number of months it would take to sell current inventory at the current rate of selling activity – stood at 0.7 at the end of last month.
Again, this shows a decrease from the same month a year ago, when an MOI of 2.9 was recorded. Additionally, the current MOI is well below “the long-term average of 3.9 months for this time of year.”
On the cost side, the MLS Home Price Index (HPI) – which tracks price trends much more accurately than is possible using average or median price measures – shows that the price of MLS HPI composite / single-family overall benchmark was $ 553,400 in March 2021. This is a 36.9% increase from last March’s records.
Meanwhile, the dollar value of all home sales over the past month was $ 137.9 million, more than doubling March 2020 levels; in fact, the rise totals 238.2%, and sets a new record for the month of March in droves.
Zooming out to examine year-to-date activity, a total of 378 home sales were recorded in the first three months of 2021, up 68.8% from data from the same period last year.
Indeed, the tendency to like the countryside of the chalets has been maintained. And with another summer of probable distance on the horizon, it makes sense that the collective desire for lakeside space will continue. This energy flowing in an already competitive real estate market is tightening its conditions more and more and, Ross Halloran of Sotheby’s International Realty notes, pushes some participants to [water’s] edge.
“Agents who are desperate to get new listings are ‘buying’ listings or ‘bidding’ price values well above all reasonable market values when valued against recent comparable sales,” explains- “Once these listings hit the market, they’re then ‘auctioned off’ by multiple buyers – and their agents, in today’s multi-bid environment – in a desperate attempt to secure property at all costs ( generally well above market value.) “
When the going gets tough, it seems, the tough guys get savvy.
Besides writing about real estate news and the tubs she wishes she could call her own, Kayla enjoys leisurely strolling, baking (and eating) sourdough bread, and reading Mary Oliver by candlelight. She also thinks the Twilight: New Moon soundtrack is “really great.”
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