Parry Sound Real Estate Market Update – May 2025

The Parry Sound real estate market in 2025 is characterized by a shift towards a buyer's market, with increased inventory and adjusted pricing across both residential and waterfront properties.​findingyourparrysound.ca

🏡 Residential Market Overview

Inventory and Sales Activity

As of early 2025, residential home sales in the Parry Sound region remain subdued, averaging around 32 properties sold per month. This slowdown isn't due to a lack of inventory; in fact, available listings have reached their highest levels since 2018, indicating a growing selection for potential buyers.

Pricing Trends

The median sale price for residential non-waterfront properties has seen a decline. In December 2023, the median price was reported at $630,000, marking an 8% decrease from the previous year. This trend reflects a market adjusting to buyer expectations, with sellers increasingly motivated to price competitively.​

Market Dynamics

The current market dynamics suggest a standoff between buyers and sellers. While buyers are cautious, awaiting further price adjustments, sellers are gradually aligning their expectations with market realities. This equilibrium is anticipated to shift as inventory continues to rise, potentially leading to more favorable conditions for buyers in the coming months.

🌊 Waterfront Market Insights

Sales and Inventory

The waterfront property segment has experienced a notable decline in sales since its peak in 2021. Properties priced over $2 million have seen sales drop by approximately 40%, while those in lower price brackets have experienced a sharper decline of about 60%. Despite this, new waterfront listings are at their highest levels since spring 2021, with the total number of cottages for sale doubling compared to 2022.

Pricing Adjustments

The increased inventory has led to significant price adjustments, as sellers navigate a buyer-driven market. Many properties have undergone price reductions to align with current buyer expectations. In 2022, properties sold for an average of 105% of their listing price, often amid competitive bidding wars. Today, that figure has dropped to under 94%, indicating a return to more traditional pricing dynamics.

Market Outlook

Looking ahead, the waterfront market is expected to remain strong in terms of listings, with many unsold cottages returning to the market. Mortgage renewals for cottages purchased during the COVID-19 buying surge could drive more owners to list their properties. Anticipate further modest price reductions, particularly for cottages on smaller or less sought-after lakes, and strong inventory numbers in the second quarter. ​

🔍 Key Takeaways for Buyers and Sellers

• Buyers: The current market offers increased inventory and more negotiating power. With prices adjusting and a wider selection of properties, it's an opportune time to explore options in both residential and waterfront segments.

• Sellers: Pricing appropriately is more important than ever. Overpricing a property risks prolonged time on the market or losing out to competitively priced listings. Aligning with current market trends is crucial for successful sales.

For personalized advice and the latest listings in Parry Sound's residential and waterfront markets, feel free to reach out. Whether you're buying, selling, or investing, staying informed is key to making the best real estate decisions in 2025.