Beaverton was the only area reporting a rise in the average selling price with a 29% increase year-over-year.
In 2019, there was an 11% increase in sales from 113 to 115 in 2019.
Georgina experienced a 64% increase, the largest increase on the lake rising from 22 sales to 36.
Orillia reported 13 waterfront sales an increase of 44% from 2018.
Understanding the Market
We analyzed all the data including the expired listing activity for the last three consecutive years in order to reach some reasonable explanation why the market was down in all but one area. It is not the first time we have seen “swings” in the waterfront market. The last time was in 2017, when prices rose by 30% from 2016.
In 2019, The Toronto Real Estate Board reported 168 expired waterfront listings, a 75% increase from 96 in 2018.
Oro-Medonte reported 26 expired listings of which, the majority in $1.5m to $17.9m range.
In Innisfil, 50% of the expired properties were in the $2m to $4m range.
Georginaconfirmed 33 properties expired, up from 10 in the previous year, a 230% increase from 2018.
It is important to mention that there were many properties that expired in some cases three times. The number of expired listings would have been considerably higher, which were excluded otherwise, it would have distorted our data.
Financing A Waterfront Property
Financing the purchase of a waterfront property creates its own set of challenges. The new mortgage rules, particularly the upper-tier market has undoubtedly affected sales volume in 2019.
Darlene Hanley, Mortgage Agent of Hanley Mortgage Group commented that “cottages are a financing challenge with many variables that effect the quantum of the mortgage.” She outlined a number of key factors to take into consideration which are as follows:
The maximum Loan to Value on a refinance is 80% subject to sliding scale & qualification (e.g., the stress test). The minimum down payment on the first $500,000 is 5% and 10% on the difference up to $999,999.
For a purchase over $1 million, the minimum is 20% down.
Depending on the lender and if there is an existing mortgage, a penalty to refinance may apply.
Lenders will allow a gifted down payment; however, they also want to see 5-15% of the funds from the buyer.
Cottage are not exempt from the mortgage stress test.
Most lenders will only include the main building and exclude other buildings such as Boathouses and Bunkies when deriving an appraised value for mortgage financing.
If the funds are directed to another property, housing costs would be added to the client’s liability which may affect debt ratios (e.g., taxes, maintenance fees).
We concluded the decrease in the average selling price was largely due to the upper-tier market pulling back. Luxury buyers of recreational waterfront did not invest as heavily in the upper-tier market on Lake Simcoe compared to previous years.
Oro-Medonte has traditionally reported the highest selling price on the lake as many of the lakefront properties are situated on large acreage with substantial homes. Their upper-tier market was very quiet in 2019.
Georgina’swaterfront sales were also very quiet in 2019.
There is more evidence confirming younger people are being shut-out of the housing market in major urban centers. They have redirected their attention to other rural areas including lakefront homes. This trend may explain why there was a larger percentage of lower priced Lake Simcoe properties sold in 2019.
The Friday Harbour Development (“FHD”) appears to be successful in attracting buyers of waterfront condominiums. In 2019, eight “resale” units were sold at an average selling price of $1,278,875.
FHD have released three other new phases including their 126-unit Ferretti towns, ranging in size from 2540 sq. ft. to 2731 sq. ft. with a starting price of $1,600,000.
Seasonal or recreational buyers are attracted to the turn-key lifestyle with full amenities. This is a different buyer demographic to those seeking private properties dotting the 240km of Lake Simcoe shoreline.
The Eastern Shoreline
Although travel time to Beaverton will add 30-minutes to your trip, this area offers exceptional, mostly all direct waterfront and priced well below other areas. Buyers are exercising their “buying power”. Properties tend to offer more direct water frontage, clear water with sandy bottom features. Beaverton prices rose by 29% in 2019. It appears the best kept secret on Lake Simcoe is out!
If you would like to obtain a copy of our full report, please email us at Roxanne@ChestnutPark.com or call us direct at 289-338-0767.
This publication is not be copied or duplicated without the express written permission of Roxanne Henderson. This publication is not intended to solicit buyers or sellers currently under contract with a real estate brokerage. All statistics were obtained from the Toronto Real Estate Board.
Just Listed on Lake Simcoe: 968 Degrassi Cove Pl W, Innisfil
This custom home direct waterfront home was built in 2000 by the current owner and has served as a sanctuary for family and friends. Over their 22 years of ownership, they have enjoyed the property during every season.
Degrassi Cove is a small and exclusive waterfront community and share the private road. The forested lands on the opposite side of the street provide great privacy. There is no vehicle traffic other than the neighbours, so it is very safe for kids.
Built as a 4-season home and located on the west-side of Lake Simcoe. You will enjoy north-west facing views of the lake and sunsets. There are no stairs to the water’s edge. The water table is level to the lot, which offers a beautiful beach area along the shoreline. There is great swimming and boating. The portable dock is 65 ft long with a 12’ x 12’ patio area. Boating enthusiasts can store their boat in the dry boathouse. Entertaining on the lake is so easy!
The home offers 2,700 sf on the main and upper level. The principal rooms offer generous space including a large private family room, formal dining room, large great room combined with the eat-in kitchen. In addition, there is 1,535 sf of finished space on the walk-out level. There are four generous size bedrooms. The primary bedroom is situated on the main level and overlooks the lake, and includes a five-piece ensuite, a walk-in closet and a garden door to the lakeside patio area. The three other bedrooms are located on the second floor.
The lower level includes a large recreation room with wood-burning fireplace and a walk-out to the lake. A large office with a built-in desk and bookcases can serve as a large 5th bedroom. The 3-piece bathroom is also equipped with a partially finished cedar-lined sauna. There is plenty of storage space on this level too.
Photography by @ishutterphoto
Staging by @chateau_designandstaging
This professionally designed custom-built home embodies a comfortable, vintage cottage feel built with energy efficient maintenance-free materials. This home offers a private park-like setting, with in- town conveniences. It’s a nature lover’s lot…a sanctuary for birds and wildlife. This one in in a million home was showcased in a 16-page spread in Cottages & Bungalows Magazine.
Shiplap walls and wood slat ceilings throughout impart a cabin-like coziness. The primary bedroom is secluded on the main floor overlooking a wooded area that surrounds the property. The front office duals as an additional main floor bedroom adjacent to a 3-piece bathroom. The upper level includes two additional bedrooms that provide enhanced privacy for guests. One of the bedrooms functions as a seating area with a Murphy bed and small kitchenette. It has been designed as a secure space for future rental opportunity.
Located in the charming lakeside village of Bayfield, this property is a stone-throw away from Lake Huron, a short walk to town, the fishing pier and marina, Pioneer Park and the Community playground. This spectacular property backs on to a designated environmental area and surrounded by trees makes it an ideal retreat for entertaining family and friends.
It’s no secret that green has been trending in a major way lately. Not only does the leafy shade conjure the sensation of being outdoors after two years cooped up at home, it also is a versatile (and welcome) alternative to traditional colors like white and gray.
Sweet 3 bedroom home that has a light and airy feel to the interior. Vaulted ceiling with open concept design creates a welcoming feel with plenty of natural sunlight all afternoon. Hardwood floors in bedrooms. Updated interior ready to be moved in to. It is a special place to call home or cottage.
Large wrap-around deck features West-facing views of 2-acre park of which you would be a 1/10th owner. Private dock for all park owners. Deeded Lake Simcoe access is rare to find. Very private setting with mature trees.
Message us today for more information or to book private showing.
staging by @chateau_designandstaging
photography by @ishutterphoto
20 Quiet Heights Lane, Georgina provides views of the lake from all spaces on the west side of them home, including the great room, kitchen, dining area, and primary bedroom.
You will enjoy the morning sunrise from the front covered porch and of course, sunset views from the lakeside. The natural sunlight fills the home with warmth and light all day long. It’s tranquil, serene, and welcoming.
In the design stages, the current owner had some important “must-have’s” including a Muskoka like feel, spaciousness, sun-filled rooms, and an “understated elegance“ carried throughout the home.
Some of the interior features include:
– 3 bedrooms on main level and 2 additional bedrooms on the lower level
– 3 full bathrooms plus powder room
– 10.9 ft ceiling height on the main level and 9 ft ceiling height on the lower level
– Great room includes custom millwork and 13 ft vaulted coffered ceiling
– Gourmet kitchen with upgraded appliances
– Spectacular light fixtures including ceiling fans in each bedroom
– Custom drapery and blinds
– Radiant heated floors in kitchen, primary ensuite and the entire lower level
– Surround sound system both indoors and outdoors
A full list of room features, additional images, virtual tour, and more can be found on our website (link in bio).
This listing is also available on realtor.ca (MLS# N5657656)
When you combine the attention to detail of a quality builder with the owner’s vision to create a sanctuary home, the result is spectacular.
This home offers a “Zen” feel immediately upon your arrival.
The landscaping is wonderfully appointed with a collection of perennial gardens, shrubs, mature trees and privacy hedges on both sides, which is home to many birds. There are several seating areas promote great conversation with family and friends or a place to enjoy some quiet time when you want to be alone and enjoy nature all around you.
This is a wonderful home to entertain in both indoors and outdoors. The raised balcony includes a covered area where you can enjoy a summer rain shower. The open area provides lots of space for your chaise loungers to get some sun and watch an array of boats on the lake.
The lower deck is covered and a perfect location for the 7-seater plus lounger hot tub along with another separate seating area to enjoy the lake views.
Listing Price: $1,935,000
DM us to book a private viewing.
The full listing can be found on our site & on realtor.ca (MLS# N5657656)