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Parry Sound Real Estate | July 2023 Update
Let's take a closer look at what's happening in Parry Sound's real estate market, focusing on both residential and waterfront properties. In July 2023, the MLS® System painted a picture of 406 property sales, a notable increase of 24.9% from the same time in 2022.
When it comes to regular homes (not on the water), the market showed growth, but it's important to note that sales were 29.3% lower than the average over the last five years and 29.5% lower than the ten-year average for July. Over the first seven months of the year, 2,688 homes were sold, which was 11.4% less than the same period in 2022.
On the other hand, waterfront property sales had a different story. July 2023 saw 112 waterfront properties change hands, which was a drop of 17.6% from the previous year. These numbers were below the usual averages, with waterfront sales lagging 48.9% behind the five-year average and 50.9% behind the ten-year average for July. Looking at the year as a whole, 651 waterfront properties were sold in the first seven months of 2023, marking a decrease of 12% compared to 2022.
Matthew Lidbetter, who heads the Lakelands Association of REALTORS®, pointed out the interesting trend. While regular homes saw more sales compared to the previous year, waterfront properties faced declining interest. Notably, prices for regular homes were still lower than the previous year's records, but waterfront property prices rebounded faster. Even though there was less demand for waterfront properties, they spent less time on the market before being sold compared to the past.
Getting a better understanding of price trends is where the MLS® Home Price Index (HPI) comes in handy. In July 2023, the benchmark price, a more accurate measure than averages, was $717,000, down by 4.7% from July 2022.
A Changing Cottage Market
For single-family homes, the benchmark price was $746,300, which was 3.9% lower compared to July last year. Townhouse/row unit prices dropped even more, with the benchmark price at $577,600—14.1% less than the previous year. Apartments showed a 7% decrease, with the benchmark price at $471,500.
When it comes to median prices, which give a middle-ground perspective, residential non-waterfront properties had a median price of $685,000 in July 2023, up by 5.2% from July 2022. Looking at the bigger picture, the median price for these properties from January to July was $685,000, down by 9.3% from the same period in 2022.
Waterfront property median prices told a different story. In July 2023, the median price was $1,062,500, a substantial increase of 24.9% from July 2022. However, the year-to-date median price for waterfront properties was $950,000, which was 10% lower than the same period in 2022.
Wrapping up the financial perspective, the total value of all residential non-waterfront sales in July 2023 was $317.8 million, a significant jump of 32.2% from July 2022. Similarly, the total value of all waterfront sales in July 2023 reached $162.5 million, up by 9.8% from the same month in 2022.
The takeaway is this; The market for residential properties in the Parry Sound region remains strong while the waterfront market is softening throughout cottage country. Rising interest rates combined with higher interest rates and changing sediment have created an undeniable dichotomy which appears to be strengthening.
Keep in mind that these numbers are for the entire Lakelands coverage area. Parry Sound is in the "Lakelands North" which includes Algonquin Highlands, The Archipelago, Bracebridge, Dysart et al, Georgian Bay Township, Gravenhurst, Highlands East, Huntsville, Lake of Bays, Minden, Muskoka Lakes and of course Parry Sound.
