We can already hear you saying it: Yes, the cottage country real estate market is on fire! We get it!
But... Do you get it? We just have to make sure. Because this two-property pairing, featuring a tear-down cottage and a boathouse, alongside a chunk of vacant land, just sold for $5.55 million.
That's $2.5 million over asking.
Yes, the land is vast: several acres of level property overlook a sandy section of Lake of Bays, and west-facing exposure means the views from here are simply stellar. And also, sure, the structure that currently stands on the occupied portion of the purchase is technically called a 3-bedroom, which may classify as a family getaway in some cases.
READ: What You Need to Know About Cottage Insurance, But Probably Don’t
But still, those bedrooms are soon to become none, as the building is destined to be taken down imminently.
Specs:
- Address: 1192 Glenmount Road #58; 1192 Glenmount Road #62
- Size: 2-4.99 Acres + 3.90 Acres
- List: $2,100,000 + $900,000 ($3,000,000 total)
- Sold: $3,050,000 + $2,050,000 ($5,500,000 total)
- Bedrooms: 3
- Bathrooms: 1
If anyone's scratching their noggins, wondering how it all adds up, perhaps new data from the Canadian Real Estate Association (CREA) can help clear the up the situation. According to CREA, waterfront property sales numbered 210 units last month, soaring 223.1% over sales from March 2020. That is to say: While by now, activity has long been bustling in the region thanks to COVID crowds flocking to the lakes, the heat has been seriously cranked on homes changing hands in Muskoka as of late.
In terms of pricing, waterfront sales amounted to $228.4 million through March. Nevermind “more than doubling” the prior year’s total — last month’s sales surpassed those of March 2020 by 438.3%, setting a new record for the month.
"Listing and buyer agents trading in the recreational/waterfront market today must now contend with Real Estate Darwinism at its worst, and must evolve to survive,” says Ross Halloran, Broker-SVP, Sales at Sotheby’s International Realty.
READ: Total Dollar Value of Waterfront Sales in Muskoka Skyrockets, Up 438% in March
Halloran explains that these days, Muskoka's market conditions are so tight that those in the game are finding, shall we say, creative ways to win.
“Agents desperate to secure new listings are now “buying” listings, or “bidding up” list-price values way above any reasonable market values when assessed against recent comparable sales," Halloran tells STOREYS. "Once these listings come to market, they are then further “bid up” by several buyers — and their agents, in the current multi-offer environment — in a desperate bid to secure the property at any cost (usually well above market value.)”
We can't say, however, that's the exact situation that led this tear-down property duo down the path to a $5.5 million sale. But it is important to remember, if this property did sell for such a price organically, a quick survey of the surrounding market conditions helps us sort out the how and why.
Well, all that and -- as the last photo in the gallery below will show -- the place does offer a spectacular view.
