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.
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)
This charming 3+1 bedroom century home is located in an established area of Sarnia offering lovely streetscape, large mature trees, wide streets and boulevards.
The family have maintained the home and updated the interior features over their many years living here since 1975. The shingles were replaced in 2022. There were two additions including a a two-storey addition with a large family room, sun room and additional bedroom on the 2nd floor.
There is lots of space to entertain family and friends. The living room includes a gas fireplace and overlooks the formal dining room. The sun room includes a gas fireplace, large windows and double patio doors.
The oversized fully finished & insulated 3-car garage includes an upper level coach house which is completely finished. This is a great space for extended family and serves as an in-law suite or potential income if approved by the City as an auxiliary dwelling.
The mature front yard boasts beautiful mature trees, gardens and a seating area. The backyard has a large paved courtyard and provides parking for 3 vehicles.
PM is to book a showing today.
Staged by @chateau_designandstaging
Photos by @ishutterphoto