ENGEL AND VÖLKERS
Engel and Völkers Collingwood Muskoka is reporting a strong current trend of affluent baby boomers selling their luxury Muskoka properties and relocating to Collingwood to live full time.
At the same time, boomers from Toronto, and a new wave of millennial buyers, are showing interest in making Collingwood their full-time residence.
The area’s walkability and proximity to hospitality, recreation and entertainment. are attracting both young families and retirees who enjoy the year-round active lifestyle.
Collingwood has shifted from a seasonal vacation market to a popular full-time residential market with increasing investment. Private schools are growing in popularity due to the influx of new families, and its millennial buyers are entrepreneurial, opening breweries, fitness studios, interior design studios, restaurants and other service-related businesses.
A blooming cannabis industry in the area has seen an uptick in inquiries for agricultural land, and the first cannabis shop officially opened its doors in December, hiring 15 people. Another major segment is comprised of a cohort of professionals who work remotely, particularly in tech industries.
According to 2016 Census data, Collingwood is one of the fastest-growing communities in Canada, ranking 24th on the list of fastest-growing municipalities located outside a census metropolitan area. Collingwood saw a 13.3 per cent jump in population, increasing to 21,793 from 19,241.
Collingwood is currently a balanced market with conditions favouring sellers due to a supply shortage, particularly within the condo market.
Demand remains high within the luxury segment with new-to-market residential freehold properties between $1 million to $2 million selling quickly.
In 2019, Collingwood experienced increased construction activity, seeing it become a hot destination for long term living – particularly for new families and high net worth baby boomers – a major trend to watch in the area.
Last year ended strong, with residential sales in the Southern Georgian Bay Area totaling 158 units in December 2019, up 22 per cent year-over-year.
Home sales in the western region, which includes Wasaga Beach, Clearview Township, Collingwood, The Blue Mountains, the Municipality of Meaford and Grey Highlands numbered 89 units in December 2019. This was an increase of 11.3 per cent (nine sales) from December 2018. An In-Depth Look
Home sales in the western region numbered 1,997 units over the course of 2019, up 10.6 per cent from the same period in 2018.
MLS reported that home sales improved throughout 2019, with the average price of homes sold in the Western Region in December 2019 reaching a record $594,714 – a drastic increase of 20.7 per cent from the previous year.
Active residential listings numbered 751 units at the end of December 2019, up 4.2 per cent from December 2018. This pick-up and interest in market activity is expected to grow in 2020.
The Blue Mountains remains as the top luxury hotspot in the area with average prices hitting $926,070 in January 2020. Following close behind is Collingwood, particularly in the infill, with the area seeing a lot of new luxury developments and interest in tearing down and building new properties.
Waterfront properties along Georgian Bay ranked the highest in terms of top-selling luxury properties in Collingwood and The Blue Mountains. The market saw more buyers seeking and building custom contemporary builds with flat roofs, large glass windows and smart home tech integration. This is expected to continue.
According to Engel & Völkers Collingwood Muskoka, Thornbury is experiencing an increase in interest and is expected to see a pickup in luxury real estate. Meaford is also growing as people are beginning to migrate west for residence.
Engel & Völkers Collingwood Muskoka currently has 14 listings priced at over $1 million in Collingwood. In 2019, the shop closed 11 deals over $1 million with the most expensive sale at $2.2 million.
This luxury segment of $1 million-plus properties represents 8.4 per cent of Engel & Völkers Collingwood Muskoka’s total transactions in 2019. Currently, the most expensive property listing from the shop is 449 Island View Road, priced at $2.99 million.
Engel & Völkers Collingwood Muskoka expects prices in the region will increase by 10 per cent within the Collingwood market. The Collingwood market is projected to grow at a healthy, steady pace in 2020, with the average sale price across all property types up 30.9 per cent to $618,571 in January 2020 compared to January 2019. In the Western District, the average price grew from $594,714 in December 2019 to $663,552 in January 2020. With this rapid price growth in January alone, Engel & Völkers Collingwood Muskoka expects the market to remain a real estate hot spot that will grow further into 2020.
Three trends to watch in 2020 include the movement of millennials and baby boomers to the market, the end to the market correction, and a steady uptick in average home prices with new interest in the luxury segment.
Overall, home prices in Collingwood are expected to rise with the popularity of the recreational market and increasing desire for long-term living in the area.
Mortgage rates are expected to be on the decline in 2020 as some have dropped below 4 per cent. For example, Royal Bank of Canada, the country’s largest mortgage lender, has reduced its rate to 3.09 per cent in January 2020 and TD Bank has recently cut its rate from 5.34 per cent to 4.99 per cent. Rates are predicted to continue to decline – posing a good opportunity for buyers to enter the market.
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