After robust sales in 2020/2021 & a brisk start to 2022, MLS® real estate sales in the Southern Georgian Bay softened in 2022 including condominiums, due largely to higher interest rates, economic inflation and a looming recession.

Condo sales as reported on the MLS® System of the Lakelands Association of REALTORS® in 2022 of 334 units are 280 fewer than 614 units sold in 2021, a decrease of 46%.

As seen in the chart below, condo sales in most price segments of the market were 42% to 55% fewer than in 2021 with the exception of those units priced over $1 million which were down by 3 units, a modest 5% decrease from the year before.

2022 MLS® condo sales dollar volume of $232.9 million was 40% less than $387.5 million in 2021 & well below the $300.1 million in sales that we saw in 2020.

NOTE:  This data includes the municipalities of Clearview, Collingwood, Grey Highlands, Meaford Blue,                   Mountains, Wasaga Beach.  Sales of new condos made by developers which are substantial have                 not had a negative impact on the re-sale condo market and will in fact drive them higher over time.

The “median” MLS® sale price for condo units has risen steadily over the past 5 years.  At the end of 2021 the overall median price was $580,800 up from $439,100 in 2020.

For 2022 the median MLS® sale price rose to $664,500 up 14% from 2021 & 51% higher than the median sale price in 2020.  The median sale price has risen largely due to the types of condos being sold.  Today’s, Buyers demand larger units with garages, basements & high-end finishes.  Units currently listed for sale on the MLS® System are priced from $299,000 to $1.350 million.

NOTE:  The median sale price is the mid-point in pricing of all units sold year-to-date whereas average                      sale price is determined by dividing total sales dollars by the number of units sold. This can                          change dramatically on a month-to-month basis.

Condominium sales are concentrated largely in the municipalities of the Blue Mountains & Collingwood.  In 2022 these two municipalities represented 89% in terms of the total number of units sold through the local MLS® System, with Wasaga Beach coming in at just under 8% of the market.

As of this report there are currently 47 condo units listed for sale on the MLS® System of the Lakelands Association of REALTORS®.  This number excludes 6 fractional ownership units currently for sale.

In January of 2022 average days-on-market (DOM) for condos to sell was 25.  For December, DOM had risen to 62.  For the full year average DOM in 2022 for condos to sell was 31.

Based on the rate of sales we saw in 2022,  there is currently 38 days of inventory on the local MLS® System & I expect this number will rise in 2023 driven by ongoing weaker sales activity.

The purchase of a condominium cannot be taken lightly.  Inflation is having an impact on us all & this is sure to affect condominium corporation’s operating budgets/expenses & subsequently on the condo fees paid by owners for maintenance, repairs etc.

Further, many municipalities across the province are looking at restrictions on short term rentals, those of less than 30 consecutive days. This is going to have an impact on some condo Buyers & perhaps current owners that wish to or do rent their units out to help offset ownership costs.  As always, in addition to information I can provide, I encourage both current owners as well as potential Buyers to obtain qualified legal or accounting advice in this regard before making any decisions whether buying or selling.

Condominiums remain an attractive purchase for many & we will no doubt see a modest increase in activity as the spring real estate market approaches.  Demand and sales will bounce back, they always do.  The question remains how much of a resurgence will we see and when.  With higher interest rates, inflation & a looming recession, the market is bound to remain softer in 2023 than what we saw in 2020 or 2021.

Contact Me for a confidential consultation of your condominium selling or buying objectives, I would be pleased to assist you in determining how the current market may impact your selling or buying decisions.