2021 Year-End Market Review
We are pleased to release our Annual Lake Simcoe Waterfront Report which, as you will see shows unprecedented increases in property values in 2021. Chris Kapches, CEO & President of Chestnut Park Real Estate recently commented that “he has run out of superlatives to describe the real estate market conditions we have experienced this year”.
This year-end review will examine the key Lake Simcoe waterfront markets of:
In total, there were 188 waterfront sales in 2021. The overall average price is $1,804,622, an increase of 44% compared to 2020’s average sale price of $1,252,986.
Average Sale Price
In 2021, the year-over-year average price of Lake Simcoe waterfront increased by 44%. The average selling price in 2021 was $1,804,623 compared to $1,252,987 in 2020, therefore showing an average price increase of 83.5% over the past 24-months.
Georgina reported a 17% increase to the average selling price. Orillia’s average sale price of $1,558,018 represents a 57% increase. Beaverton’s lakefront is mostly comprised of direct waterfront lots. The water quality is superior to some areas further to the south and the size of the lots tend to be larger than those available in Innisfil and Georgina. Beaverton’s average price of $1,338,274 is catching up to other areas.
Orillia reported an average selling price of $1,558,018, which is a 57% increase. Oro-Medonte has always reported the highest average price, which is due to the size of the lots and homes located in this luxury community. In 2021, Oro-Medonte reported the highest year-over-year increase of 81%, which is largely due to 3 significant sales priced in the range of $6.5m to $16.8m.
Innisfil had a very active selling season, which included several sales of waterfront condominiums in the Friday Harbour Development. The average selling price for this area jumped 31% to $1,992,074. Our data for Ramara excludes most of the sales in the Lagoon City Community. As previously mentioned only direct lakefront properties are included. This being said, Ramara was the second most active trading area on the lake in 2021. The average price increased 28% to $1,217,854.
Georgina experienced a 47% decrease in sale volume in 2021, which is the largest decrease in the total number of sales compared to the other areas. In the 4th quarter, Georgina only reported 6 sales which, is the lowest volume recorded in several years. Beaverton is a small niche waterfront community with very few lakefront properties available for sale in any given year. In 2021 there were 11 sales, a decrease of 4 sales from the 15 sales in 2020.
Orillia on the other hand had a very active selling season with 23 sales, a 91% increase. This is rather remarkable since the waterfront community is also not large relative to other areas. Oro-Medonte reported a 34% reduction compared to 2020 with just 23 sales.
Innisfil traded 54 properties in 2021, which is a 17% increase year-over-year. This was the only other area that experienced a rise in sales volume. Ramara’s sales activity dropped by 24%, however, there were several sales of canal properties that sold in Lagoon City.
(NOTE: Our annual reporting only includes properties sold above $300,000 on Lake Simcoe/Lake Couchiching. Canal, island, or riverfront sales are excluded from our analysis with the exception of Friday Harbour.)
The Secondary Market
Prior to the pandemic, most buyers of waterfront properties considered these properties as a secondary home or for recreational use. There were exceptions, particularly in exclusive luxury enclaves of new homes built on the lake. This appears to have changed since more and more people are able to work from home. Living north of city has affected many secondary markets, including the waterfront communities that dot the 240 km of Lake Simcoe shoreline.
We see this trend to continue into 2022 and beyond. The combining of home and cottage under “one-roof” is alive and well on Lake Simcoe. Lake Simcoe’s proximity to Toronto offers many options, even if commuting is still required for business purposes.
The Secondary Market
The Friday Harbour Development (“FHD”) has been very successful in attracting luxury buyers of waterfront condominiums. In 2021, 19 “resale” units were sold at an average selling price of $1,830,257 and represented 35% of the total resale waterfront activity in Innisfil. The average price in FHD in 2019 was $1,278,875. FHD recently launched a Limited Release of their “Ferretti Towns”, starting at $2,000,000.
The Secondary Market
Financing the purchase of a waterfront property creates its own set of challenges.
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
Forecast for 2022
We anticipate that rising prices will continue in 2022, especially if we encounter the continued lack of inventory experienced in 2021. There are many buyers desirous of purchasing a “special” lakefront property that were unable to do so last year. High net worth buyers however, are not just located exclusively in Canada.
International buyers recognize the value of our precious lakeshore and the benefits of the lake’s proximity to Toronto. Based on population, Toronto is the fourth largest North American city, trailing Los Angeles, New York City and Mexico City.
International buyers were shut out of the market for most of 2021, due to travel restrictions imposed related to the pandemic. This will not likely be the case this year. As such, we anticipate a very aggressive buyer competing for the opportunity to own one of the limited number of recreational properties that will be available in 2022.
All data used in this report was obtained from The Toronto Real Estate Board.
This publication is not to be copied or duplicated without the express written permission of Roxanne Finn or Claxton Finn.
This publication is not intended to solicit buyers or sellers currently under contract with a brokerage.
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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
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Just Listed: 30 George Street, Bayfield.
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.
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For Sale: 334 Metro Road N, Georgina
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.
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photography by @ishutterphoto
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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)
Listing Price: $1,935,000
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Just Listed: 20 Quiet Heights Lane, Georgina.
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)
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Tags: Cottage, Homes for Sale, Lake Simcoe, lakefront property, Waterfront homes