A transition in the housing market is likely to continue for "some time" as interest rates adjust and buyers and sellers reassess, according to an area association of Realtors.
"Many housing markets in the province and across the country are experiencing sustained downturns in activity and ours was no exception in August," Chuck Murney, president of the Lakelands Association of Realtors, said in a news release.
According to the Lakelands Association analysis of August home sales in the Lakelands region, which stretches from Meaford to Muskoka, there were 355 non-waterfront residential homes sold last month, a 41 per cent reduction from August 2021 in the same area.
Waterfront home sales are also decreasing with about 44 per cent fewer waterfront homes sold in August 2022 compared to 2021. The median price of a waterfront home in the region is about $890,000, down from $925,000 in August 2021.
"Supply levels are moving up from record lows and prices are pulling back from their peak earlier this spring, trends that we expect will continue through the end of the year since we have at least one more rate hike on the horizon," Murney said in the news release.
Though fewer homes are being sold year-over-year, the value of the homes is not decreasing at the same rate.
The dollar value of non-waterfront home sales last month was $648 million, which is about 1.2 per cent higher than in August 2021. Year-to-date, the median price of a non-waterfront home in the area was $747,075, which is up by 1.2 per cent compared to the first eight months of 2021.
"Once interest rates have stabilized, there will likely be a period of adjustment where buyers and sellers reassess their positions on affordability and pricing expectations... so the housing market is going to be in transition for some time while all of this is going on," said Murney.
The benchmark price of homes in the region has increased, with single-family homes in the Lakelands region worth about $746,200 (up by 6 per cent year-over-year) a townhouse worth about $657,900 (up 14.2 per cent) and an apartment valued at about $512,500 (up 14 per cent). All benchmark prices are calculated using the home price index, and represent the estimated sale price a person could get for that type of home in the region.
The prices vary slightly by market with the higher prices in the west part of the Lakelands region, including The Blue Mountains, Clearview Township, Collingwood, Grey Highlands, Meaford, and Wasaga Beach.
In the west portion of the region there were 116 non-waterfront homes sold in August 2022, down from 212 homes sold in August 2021. The median price for non-waterfront residential in the area was $706,750 last month, compared to $730,000 in July 2021.
There were 10 waterfront homes sold in the west part of the region last month, which is down from 21 sold in August 2021. The median price for waterfront homes sold this month to $1.23 million, compared to $1.1 million in August 2021.
In the central portion of the region, including Midland, Orillia, Oro-Medonte Township, Penetanguishene, Ramara Township, Severn Township, Springwater Township, Tay Township, and Tiny Township, there were 158 homes sold last month, down from 241 sold in August 2021.
The median price for homes sold in the central section of the region was $637,500 for non-waterfront, and $900,000 for waterfront (27 waterfront homes sold last month).
In the north, including Muskoka, Parry Sound, Georgian Bay Township, Algonquin Highlands, there were 81 non-waterfront and 104 waterfront homes sold in August 2022, which is a decrease for both of about 45 per cent compared to August last year. The median sale price in the north was $570,000 for non-waterfront (up 13 per cent), and $855,000 for waterfront (up 2.6 per cent) .
