Lakelands Association of REALTORS® MLS® home sales remain below average as rising interest rates impact affordability

Residential non-waterfront sales activity recorded through the MLS® System for the Lakelands region totaled 355 units in August 2022. This was a substantial reduction of 41% from the same period in 2021.

Residential non-waterfront sales were 39.8% below the five-year average and 38% below the 10-year average for the month of August.

On a year-to-date basis, residential non-waterfront sales totaled 3,404 units over the first eight months of the year. This was a sharp decrease of 33.7% from the same period in 2021.

Sales of waterfront properties numbered 141 units in August 2022. This was a substantial reduction of 43.8% from the same period in 2021.

Waterfront sales were 41.4% below the five-year average and 42.3% below the 10-year average for the month of August.

On a year-to-date basis, waterfront sales totaled 884 units over the first eight months of the year. This was a sharp decrease of 46.5% from the same period in 2021.

“Many housing markets in the province and across the country are experiencing sustained downturns in activity and ours was no exception in August,” said Chuck Murney, President of the Lakelands Association of REALTORS®. “Supply levels are moving up from record lows and prices are pulling back from their peak earlier this spring, trends that we expect will continue through the end of the year since we have at least one more rate hike on the horizon. Once interest rates have stabilized there will likely be a period of adjustment where buyers and sellers reassess their positions on affordability and pricing expectations, respectively, so the housing market is going to be in transition for some time while all of this is going on.”

The MLS® Home Price Index (HPI) tracks price trends far more accurately than is possible using average or median price measures. The overall MLS® HPI composite benchmark price was $725,400 in August 2022, a gain of 6.5% compared to August 2021.

The benchmark price for single-family homes was $746,200, up by 6% on a year-over-year basis in August. By comparison, the benchmark price for townhouse/row units was $657,900, an increase of 14.2% compared to a year earlier, while the benchmark apartment price was $512,500, a sizable gain of 14% from year-ago levels.

The median price for residential non-waterfront property sales in August 2022 was $648,000, up modestly by 1.3% from August 2021.

The more comprehensive year-to-date residential non-waterfront median price was $747,075, an increase of 14.9% from the first eight months of 2021.

The median price for waterfront property sales in August 2022 was $890,000, down modestly by 3.8% from August 2021.

The more comprehensive year-to-date waterfront median price was $1,025,000, an increase of 13.3% from the first eight months of 2021.

The total dollar value of all residential non-waterfront sales in August 2022 was $249.4 million, a big decline of 43.1% from the same month in 2021.

The total dollar value of all waterfront sales in August 2022 was $171.7 million, a substantial reduction of 45.5% from the same month in 2021.

The Lakelands Association of REALTORS® represents more than 1,600 REALTORS®. There are several major geographical areas within the Association’s boundaries, including parts of Severn and Georgian Bay Townships; Wasaga Beach, Clearview Township, Collingwood, The Blue Mountains, and portions of the Municipality of Meaford, Grey Highlands. As well as Towns of Midland and Penetanguishene, the Townships of Tay, and Tiny. In the heart of Canada’s Cottage Country; Parry Sound, Muskoka, Haliburton, Orillia, Gravenhurst, Bracebridge, Muskoka Lakes, Huntsville, and Lake of Bays. Most within our geographical area are located less than a two-hour drive north of Toronto. Each offering a unique blend of properties ranging from residential homes to smaller towns and the rural areas in-between, as well as a mix of waterfront homes/cottages on the many rivers and lakes that range from the smaller entry-level properties to the prestigious.

Provided by:
Chuck Murney
President The Lakelands Association of REALTORS®

REALTOR® is a trademark that identifies real estate professionals who are members of The Canadian Real Estate Association (CREA) and, as such, subscribe to a high standard of professional service and to a strict Code of Ethics.