Just two hours from Toronto in Ontario, Canada, the Muskoka region is renowned for its secluded lakefront cottages and exceptional recreational offerings. Dubbed “The Malibu of the North” by The New York Times, this pristine wilderness area has gained recognition as a world-class travel destination.
Predominantly a second-home, summer-resort market, in 2014 Muskoka saw a marked increase in sales of luxury homes, especially in the $2 million-plus range, which skyrocketed by 66 percent over 2013. “The jump in luxury sales volumes does not necessarily show that average sale prices increased, but does indicate that buyers had an appetite for more expensive recreational properties—something that has not occurred since before the recession of 2008,” notes Justine Deluce of Chestnut Park Real Estate Limited.
Across the board, sale prices have edged closer to their list prices than ever before and demand has kept up with supply. Negative market influences are shaped by low interest rates and winter weather conditions, while a potential threat to growth may come from rising oil prices impacting Canada’s commodity-driven economy.
|What defines luxury:||$1 million|
|2014 record sale:||$7 million|
|Year-on-year growth in luxury sales:||66%|