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By Jenn O’Brien, Lake and Bay Real Estate
As we navigate through the early months of 2025, the Parry Sound real estate market presents a dynamic landscape for both waterfront cottages and residential homes. Here's an in-depth look at the current trends shaping our local market.
Waterfront Cottage Market
The waterfront real estate sector in Parry Sound has experienced notable shifts. Since the market's peak in 2021, cottage sales have declined significantly. Specifically, properties priced over $2 million have seen a reduction of approximately 40% in sales, while more modestly priced cottages have witnessed a sharper decline of about 60%.
This decrease in sales has led to an increase in available inventory. New waterfront listings are at their highest levels since spring 2021, with the total number of cottages for sale doubling compared to 2022. The 12-month rolling average now exceeds 200 active listings.
Pricing dynamics have also shifted. In 2022, properties often sold for an average of 105% of their listing price, frequently amid competitive bidding wars. Currently, that figure has dropped to 93%, indicating a return to more balanced market conditions.
Residential Homes Market
The residential sector in Parry Sound mirrors some of the trends observed in the waterfront market. Home sales remain slow, with an average of just 32 properties selling per month. Interestingly, this sluggish performance isn't due to a lack of inventory—available listings are at their highest levels since 2018.
This scenario suggests a standoff between buyers and sellers. Many sellers are holding out for peak prices reminiscent of previous years, while buyers are cautious amid evolving market conditions. As inventory continues to rise, sellers may feel increased pressure to adjust their expectations to align with current market trends.
Market Outlook
As we move further into 2025, several factors are expected to influence the Parry Sound real estate market:
Increased Inventory: Both waterfront and residential properties are anticipated to see a rise in listings, providing buyers with more options.
Price Adjustments: Sellers may need to adjust their pricing strategies to reflect the current market dynamics, especially if properties remain on the market for extended periods.
Buyer Opportunities: With increased inventory and potential price adjustments, buyers may find favorable conditions to enter the market, particularly in segments with significant inventory growth.
Both buyers and sellers need to stay informed and adapt to these evolving market conditions. Collaborating with a knowledgeable local real estate professional can provide valuable insights and guidance tailored to individual circumstances.
For personalized advice or more information on specific properties, feel free to contact us at Lake and Bay Real Estate. We're here to help you navigate the Parry Sound real estate market with confidence.
Note: The data and trends discussed above are sourced from recent market analyses and reports.
Lake and Bay Real Estate
Your Trusted Partner in Parry Sound Real Estate
Contact us at 905-467-1975
Visit our website: http://www.lakeandbay.ca/
