Ontario Southern Georgian Bay (Collingwood/Meaford/Thornbury)
The median price of a single-family detached home in Southern Georgian Bay’s recreational property market for the first 10 months of the year increased 11.3 percent year-over-year to $890,000. Meanwhile, the median price of a condominium increased 1.3 percent to $679,000 during the same period; a sharp contrast to 2021, when condominium prices rose more than 50 percent year-over-year. For those looking to buy a house slopeside or at a mountain base, prices typically start at $1,500,000. Total sales were down 27 percent year-over-year in the region, following historic sales volumes in 2021.
“While the number of homes coming onto the market has increased, we are seeing a notable decline in sales activity. The number of days a property typically stays on the market has risen by about 30 percent since the beginning of the year, settling back to pre-pandemic levels as the buying boom comes to an end,” said Desmond von Teichman, broker, Royal LePage Locations North. “Still, demand remains strong. We continue to see a number of residents with remote working capabilities permanently relocating to the region from the Greater Golden Horseshoe in search of more affordable real estate and better work-life balance. While this trend has slowed, we don’t imagine it will end soon.
The short-term recreational rental market has been under pressure as of late, added von Teichman. With global travel having resumed once again, seasonal rentals face diminishing demand and increasing supply as Canadians choose to vacation abroad. The effects of higher inflation, rising mortgage rates and the increased cost of living have also weakened demand for rentals, as many Canadians cut back on discretionary spending. While there has been a slight decrease in demand for luxury properties compared to 2021, von Teichman added that this segment of the market had outperformed the overall market this year.
“Given its convenient proximity to the GTA, Southern Georgian Bay’s real estate market is largely driven by demand from within Ontario,” said von Teichman. “Urban buyers may be somewhat cushioned from the impacts of rising interest rates here, as funds acquired from selling their properties in high-priced surrounding areas tend to stretch farther and boost their buying power.
Market activity is largely motivated by local demand from nearby cities. However, Ontario remains a desirable destination for U.S. purchasers. Forty-three percent of U.S. citizens living in border states who currently own recreational property in Canada have purchased a home in Ontario. Of those who plan to purchase recreational property in Canada, 48 percent say they intend to purchase it in the province.
Royal LePage is forecasting that the median price of a single-family detached home in Southern Georgian Bay will increase 5.0 percent over the next 12 months, as the market continues its return to pre-pandemic seasonal trends.
Click on the links below to view a data chart and a survey chart; the first outlines the Royal LePage 2022 Winter Recreational Properties and the other outlines their report on U.S. recreational property buyers in Canada
