Through 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 sales softened in 2022 and this trend has carried over to an even greater extent in 2023.

NOTE: Areas covered in this report are Clearview Township, Collingwood, Grey Highlands, Municipality of Meaford, the Blue Mountains and Wasaga Beach.

MLS® sales of luxury properties to the end of the 2nd Quarter of 2023 total 191 properties, 179 or 48% fewer than 370 sales reported in the 1st six months of 2022.

These 191 sales total $293.4 million, $288.0 million 50% less than $581.5 million sold in the first 6 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 back 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 price range which currently representing 66% of the overall luxury property market in terms of the number of units sold.

To the end of the 2nd Quarter 2023, sales in the other segments of the luxury market are down 33% to 64% compared to the 1st six months of 2022.  Unit sales are well behind 2022 while the inventory of properties listed for sale on the MLS® System of the Lakelands Association of REALTORS® is on the rise.  See charts below.

To the end of the 2nd Quarter 2023, MLS® sales in the various luxury property price segments (homes & condos) were as follows:

  • Sales between $1 to $1.499 million down 54% to 126 units.
  • Sales between $1.5 to $1.999 million down 51% to 38 units.
  • Sales between $2 to $2.499 million down 38% to 12 units.
  • Sales between $2.5 to $2.999 million down 64% to 6 units
  • Sales over $3 Million down 33% to 6 units.

As the market has contracted, both days-on-market and days-of-inventory, the time it takes to sell have been moving upwards.  Good news for Buyers for not so for Sellers.  Buyers have more properties to choose from and with sales at a much slower pace the days of multiple offers with properties selling for over their respective asking prices are for the most part behind us.

As of  July 20, 2023 there are 367 properties listed for sale over $1 million on the MLS® System of the Lakelands Association of REALTORS® compared to 194 listings at the end of the 1st Quarter an increase of 89%.

       

 NOTE: This includes Clearview Township, Collingwood, Grey Highlands, Municipality of Meaford, the Blue Mountains and Wasaga Beach.

Based on the rate of sales to the end of the 2nd Quarter of this year, days of inventory are as follows in the various price segments:

  • $1.0 to $1.499 million    242 days
  • $1.5 to $1,999 million    404 days
  • $2.0 to $2.499 million    540 days
  • $2.5 to $2.999 million    520 days
  • $3.0 million +              1,170 days

The Blue Mountains remains the key location of choice for luxury home buyers with over 35% share of the overall market for sales in in 2023 over $1 million followed by Collingwood at 29% and Wasaga Beach at 15% see charts below.

Based on MLS® sales in the 2nd Quarter of 2023, the Blue Mountains has the highest “median” sale price for luxury properties sold at $1.494 million followed by Grey Highlands & Collingwood at $1.478 & $1.292 million respectively.

Luxury property prices & days-on-market can vary greatly across our region based on factors such as location, property size, quality of finishes, water frontage & more.  Taking a one size fits all approach to establishing current market value for any property, whether in the luxury market segment(s) or not is simply not accurate especially in this shifting market nor is it in the best interest of Sellers or Buyers.

Having earned my MVA (Market Value Appraiser – Residential) designation, allows me to show you not tell you what a specific property(s) is worth.  Contact Me to learn more or to discuss your luxury home/condominium sale or purchase. rcrouch@sothebysrealty.ca