Through the latter half of 2020 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. As with the market overall, luxury property sales softened in 2022, this trend has continued into 2023 although sales activity picked up somewhat June through September.
NOTE: Areas covered in this report are Clearview Township, Collingwood, Grey Highlands, Municipality of Meaford, the Blue Mountains and Wasaga Beach.
Market Trends: The trends in the luxury real estate market often reflect broader economic conditions. The recent softening of luxury sales can be attributed to factors such as rising interest rates, changes in buyer preferences or confidence as well as economic uncertainties globally with a number of geo-political factors now in play which have affected the higher-end segments.
Sales Activity: Year-to-date MLS® sales of luxury properties to the end of the 3rd Quarter of 2023 total 305 properties, 147 properties, (33%) fewer than 452 sales reported in the first 9 months of 2022.
These 305 sales total $467.5 million, 237.3 million (34%) less than $704.8 million sold in the same 9 months of last year.
As shown in the charts below, luxury home sales both in terms of units sold & dollar volume started a steep decline back in March 2022 & continued on that path through most of 2022 with a slight bump up in sales activity June through September. This increase suggests that there might be some stabilization in the luxury market however t’s important to monitor these trends and understand the factors that influence buyers and sellers in the luxury property segment. Rumours exist of another small interest rate hike before the end of 2023, this is sure to impact real estate sales at all price levels in 2024.
Year-to-date to the end of the 3rd Quarter 2023, MLS® sales in the various luxury property price segments (homes & condos) are as follows:
- Sales priced $1 to $1.499 million down 31% to 198 units.
- Sales between $1.5 to $1.999 million down 30% to 65 units.
- Sales between $2 to $2.499 million down 54% to 17 units.
- Sales between $2.5 to $2.999 million down 13% to 14 units.
- Sales over $3 Million down 48% to 11 units.
Pricing: With significantly fewer sales across all segments of the luxury property market in 2023, the median sale price has decreased from a high of $1.412 million in 2020 to $1.361 million in 2023 (prices rounded). The chart below shows a 5 year summary of median sale prices for properties over $1 million in the six municipalities mentioned above.
Location Matters: Location, location, Location. As in real estate overall, location remains a critical factor and luxury real estate is no excedption. The Blue Mountains, with its stunning natural beauty and close proximity to all area ski and golf clubs etc. continues to be a top choice for luxury home buyers. Collingwood and Wasaga Beach also offer attractive options, but regional variations in pricing and desirability need to considered whether you are selling or buying.
As shown in the chart below, based on its popularity and broad selection of higher priced properties, the median MLS® sale price for luxury properties located in the Blue Mountains is the highest of the six municipalities covered in this report.
Inventory Growth: The recent increase in the inventory of properties listed for sale on the MLS® System indicates that there might be more purchasing options available for Buyers. This may no doubt put downward pressure on prices, especially in segments where sales are down and the current inventory is high especially in the various price segments $2 million and higher.
Property Features: The Southern Georgian Bay region’s luxury real estate market is undergoing changes, and staying informed about these shifts is crucial for making informed decisions in the buying or selling process. Real estate professionals with expertise in the luxury segment need to provide the guidance and support needed for successful transactions in this changing market. As mentioned herein, luxury property prices can vary significantly based on various factors, including location, property size, waterfront access, and specific features. It’s essential for both Buyers and Sellers to understand the nuances of the luxury market not only in the Southern Georgian Bay region but elsewhere.
Consultation: If you are considering buying or selling a luxury property in this area, it’s advisable to consult with a real estate professional who knows the local market and specializes in luxury properties. They can provide valuable insights into market conditions and trends, help you set the right location price, and navigate the complexities of luxury real estate transactions.
Contact Information: For further information, or to discuss your luxury home sale or purchase, please feel free to contact me you can contact me at firstname.lastname@example.org or my direct line is 705-443-1037. With over 20 years of experience and as a Certified Luxury Home Marketing Specialist my knowledge and skills enables me to provide you with personalized advice based on your specific needs and preferences.