Market
Market
Parry Sound Real Estate – Firmly a Buyer’s Market
The Parry Sound real estate market has seen a significant shift, with home and cottage sales hitting multi-year lows as we move into the fourth quarter of 2024. Following a peak in mid-2021, demand has steadily declined due to a combination of factors including high interest rates, the foreign buyers' tax, and the rising cost of living.
Simultaneously, the number of real estate listings for both residential and waterfront properties has more than doubled. This surge in supply has dramatically altered the market dynamics, shifting from a modest sellers' market to a strong buyers' market in a very short time.
This trend isn't isolated to Parry Sound; it's a pattern observed across Ontario. The current inventory of waterfront cottages is nearly a 12-month supply—a staggering figure. For the market to return to a balanced state, or even to a sellers' market, several factors will need to align, with interest rates being a key element.
As we look to the fall market most of the fundamentals remain unchanged from the summer selling season with weak demand and ample supply for both homes and cottages.
Parry Sound Home Sales
Homes for Sale 2021 - Present | All Price Ranges
Parry Sound Cottage Sales
Cottages for Sale 2021 - Present | All Price Ranges
Resilience in the Luxury Market?
An intriguing trend in the Parry Sound region involves luxury properties—those priced at $3,000,000 or more. While luxury real estate in Muskoka and other parts of Ontario has remained relatively resilient, Parry Sound has seen a different pattern. For reasons not entirely clear, the sales volume in both the luxury and lower-priced categories has been declining in tandem. As you can see by the charts, cottage volume is down about 60% from the peak and residential properties have declined about 40% in all price ranges.
If you're considering purchasing a property in the Parry Sound region, there are buying opportunities available, but they require careful consideration. In my view, at least 50% of current listings are overpriced, so it's essential to have a deep understanding of the market to avoid overpaying. We can provide you with up-to-date statistics for any area or lake in the region, just contact us.
