Through 2020, 2021 and into early 2022, luxury home & condominium sales, those priced over $1 million played a dominant role in driving MLS® sales volume across the Southern Georgian Bay region.
Even though unit sales in many price segments under $1 million were down due to a shortage of homes listed for sale, this was not the case in the luxury market where there was an ample supply of both properties and Buyers.
NOTE: Areas covered in this report are Clearview Township, Collingwood, Grey Highlands, Municipality of Meaford, the Blue Mountains and Wasaga Beach.
As with the market overall, luxury sales softened in 2022 (see my 2022 Year End Luxury Properties Market Report) and that trend has continued into the 1st Quarter of 2023.
MLS® sales of luxury properties to the end of the 1st Quarter of 2023 totaled 61 properties, 153 units, 71% fewer than 214 sales reported in the 1st Quarter of 2022.
These 61 sales total $100.6 million, $235.0 million less, 70% below the $335.7 million sold in the first 3 months of 2022.
As shown in the charts below, luxury home sales both in terms of units sold and dollar volume started a deep decline back in March 2022 and continued on that path through most of 2022 with a slight bump up of sales activity in July and August.
The largest segment of the luxury property market in the Southern Georgian Bay area is the $1 to $1.5 million dollar range and they currently represent 59% of the overall luxury property market. To the end of the 1st Quarter 2023, that portion of the market has been affected the least yet sales in that segment thus far in 2023 are down 25% from this time last year. Year-to-date 2023 MLS® sales in the various luxury property price segments compared to 2022 are as follows:
- Sales priced $1 to $1.499 million down 25% to 36 units.
- Sales between $1.5 to $1.999 million down 32% to 12 units.
- Sales between $2 to $2.499 million down 38% to 6 units.
- Sales between $2.5 to $2.999 million down 40% to 4 units.
- Sales over $3 Million down 27% to 3 units.
The Blue Mountains remains the key location of choice for luxury home Buyers many of which want to be close the area’s ski and golf clubs. Luxury hone sales in the Blue Mountains in 2022 represented 34% of the market whereas to the end of the 1st Quarter sales over $1 million in the municipality have increased to 44% of the overall market over $1 million followed by Collingwood at 21% down from from 26% of the market last year followed by Wasaga Beach at 15% see charts below.
Based on MLS® sales in the 1st Quarter of 2023, the Blue Mountains has the highest “median” sale price for luxury properties sold at $1.763 million followed by Clearview & Collingwood at $1.508 & $1.368 million respectively.
As the market has contracted, both days-on-market and hence days-of-inventory have been moving upwards. As of April 4, 2023 there are 194 properties listed for sale over $1 million on the MLS® System of the Lakelands Association of REALTORS® compared to 171 listings at the end of 2022. The arrival of spring generally brings with it an increase in listings and I expect this year will be no different.
NOTE: This includes Clearview Township, Collingwood, Grey Highlands, Municipality of Meaford, the Blue Mountains and Wasaga Beach.
Based on the rate of sales through the 1st Quarter of this year, days of inventory are as follows in the various price segmenst.
- $1.0 to $1.499 million 201 days
- $1.5 to $1,999 million 354 days
- $2.0 to $2.499 million 360 days
- $2.5 to $2.999 million 369 days
- $3.0 million + 840 days
As shown in the above chart, once you get over $1.5 million it would appear that selling a home or condominium in the higher price ranges may take a year or longer and that is not an enviable position for Seller to be in. Having the appropriate pricing strategy to generate results has never been more important than it is today when market activity has slowed as much as it has. Over pricing a home or other property and waiting for a Buyer(s) to show up is known as “chasing the market down” and that is not an enviable position for any Seller(s) to be in.
Luxury property prices & days-on-market can vary greatly across our region based on factors such as location, property size, condition, water frontage & other factors. While it would appear that 2023 is going to be a challenging year overall, with the right advice selling and or buying a luxury property need not be a daunting task.
Luxury real estate is not a price point, rather it’s an experience that can be successfully handled and enjoyed provided you have the right information such as I provide all of my clients as their “trusted advisor.”