We are starting to see the Muskoka real estate market shift. From the frantic 2021 cottage market season right up until recently, holding offers until a specific date has been a popular strategy for sellers to drive up competition for listings. Listings were seeing a large number of offers and disappearing from the market quickly. Now we’re seeing more of a mix – some listings are seeing multiple offers, and some are quietly removing their request for offers when the day comes and passes with nothing.
One factor in the shifting market we’re experiencing is the Bank of Canada raising policy interest rates by 0.5% in April, one of the major goals of which was to bring inflation levels back to their target 2% (vs. the 6.7% reported in March). This is the first time it has raised rates by more than 25 basis points in more than two decades. Higher interest rates mean higher borrowing costs, which lowers demand. We expect interest rates will continue to be increased until borrowing costs are back to pre-pandemic levels of 3%. The next announcement is on June 1, 2022.
The 2022 Federal Budget also puts a few factors into play that could effect Muskoka’s real estate market moving forward. It focused heavily on housing initiatives, including (among others):
A foreign ban on buyers for two years
An anti-flipping tax that removes the principal residence exemption for properties that were purchased and sold within the same 12-month period (with some exceptions). The proposed anti-flipping measure would apply to residential properties sold on or after January 1, 2023.
Sales tax on all assignment sales. Starting May 7, 2022, anyone selling their agreement of purchase and sale to a new buyer will be subject to a tax of up to 26%
Does this mean the bottom will fall out and prices will go way down? Highly unlikely. Historically, we still have quite low inventory. It’s gone up from 2021, but properties are limited – especially waterfront. Plus, the already strong desirability of living in Muskoka has only increased after the pandemic. On top of that, there is still a large portion of the population approaching retirement age, who are looking to relocate to somewhere like Muskoka for their golden years.
If you’re a buyer, it’s time to shake off the fatigue of last season and get back to your cottage search – with less competition.
I have posted the relevant stats for overall waterfront market activity and waterfront market activity by location below, for our more analytically minded friends.
If you’re looking for non-waterfront stats or anything else that I haven’t included please email me at firstname.lastname@example.org. I’d be happy to send it to you!
I hope that you are all doing well, and coping with self isolation. These are certainly trying times for all of us. We are are all in the same situation with different circumstances. Some of us are coping well and some of us are finding self isolation very challenging, and most of us are somewhere in the middle, with good days and bad days, good hours and challenging hours.
I am continuing my theme of kindness for April. I say that kindness is the new black, and everyone needs to choose to wear it. Kindness applied to yourself first, will contribute to your strength and resolve. Self care will spill over onto others, and afford you the ability to help those around you.
Start with the outward display of kindness – taking good care of yourself. A routine is recommended by experts and will give you some structure to your day. Some days you will just be in survival mode, some days you will actually feel like you are accomplishing something.
Reach out to your friends and clients. Share your positive energy. And when you need some positive energy, reach out! A phone call checking in on clients and expecting nothing in return will help them and make you feel good. Do all the good deeds you can, from the safety of your own home.
Life is definitely not normal now, but that doesn’t mean that we cannot be grateful for the good things that we do have, and reach out when we need help. Please call me if there is anything I can do for you. We are all in this together.
Catharine Inniss 705 801 2304
Lakelands Association of REALTORS® Board of Directors, President 2020
Even if you aren’t paddling in the event, it’s an … ahem… Great Experience to watch.
This Saturday, at Annie Williams Park in Bracebridge, come out and see why The Great Muskoka Paddling Experience has become an epic one in Ontario paddling and beyond.
Mentioned in a number of Muskoka Watershed Council lectures over the past few years, calcium decline in Muskoka Lakes and in particular, the consequences of timber harvesting on lake calcium levels have been hinted at as a potential direct cause of declining health of our lakes in Muskoka. Here’s a past primer news story from the Huntsville Forester (Cottage Country News).
This week, we have an opportunity to discover more.
Dr. Shaun Watmough, an Associate Professor in the Environmental Resource Science Program at Trent University in Peterborough will present.
Here is a synopsis of the lecture:
Decades of acid deposition have depleted soil calcium reserves and, when combined with timber harvesting, predicted losses of calcium from soil are considerable and may ultimately threaten long-term forest health and productivity and lead to negative impacts on lakes.
In this talk, Dr. Watmough will provide an overview of our current understanding of calcium biogeochemistry and describe the reasons for the widespread decline in calcium levels in lakes and the implications of calcium losses on soil fertility and forest health in addition to impacts on lake ecosystems.
With an emphasis on south central Ontario, Dr. Watmough will document a nutrient budget for a selection harvesting regime in central Ontario hardwood forests. This work is then extrapolated to regional harvesting activities and management issues are discussed.
The lecture is this Thursday, October 10, 2013 from 7:00 – 9:00 pm at Nipissing University – Muskoka Campus, 125 Wellington Street, Bracebridge, P1L 1E2. As always, admission is by donation
I’ve just finished post-processing and editing this video for the Great Muskoka Paddling Experience. This event, held annually on the Saturday of the Thanksgiving weekend is a great opportunity for anyone – even if you don’t have a canoe or kayak, you can rent one there – to get out on the water for perhaps the last time of the year. It was a fun video to shoot and create and I hope it captures just how much fun the event can be.
The Great Muskoka Paddling Event benefits the Muskoka Watershed Council and helps give them a bit more of a budget to do important work. It’s a really well organized event and fun for all ages, and all levels of paddling experience.
I posted a few videos today. One is the 1st of a Muskoka Moments collection.
The idea of Muskoka Moments is to show people and places in Muskoka, but more importantly, to try to show the connection between the two.
Our first video Backyard Swamp, Bracebridge, is a perfect example to lead off. The star of the video, shows off his knowledge of the natural world around him and his excellent backyard! The video was created by a newbie to Final Cut Pro -nice work!
If anyone has a 1 or 2 minute video (or aspires to shoot some) that shows the connection between people and our beautiful environment here in Muskoka, let me know.