It’s no secret that Canadians are struggling to adjust to the country’s current situation.
By situation, we mean the annual inflation increase of 5.1% that was announced in January (the last time it raised this extensively was in 1991), a hurting global economy caused by the current crisis in Ukraine which has resulted in price hikes worldwide, and, of course, the unmistakably hot real estate market.
“Many long-term residents in the area have noticed a growing population due to a fresh interest from outsiders in the perks and amenities that Collingwood has to offer,” says Janet Piotrowski, Broker at Royal LePage Locations North, “We’re happily welcoming many people from the GTA and beyond who, in the wake of the pandemic, want to embrace the lifestyle we enjoy, but it’s definitely influenced already high real estate prices.”
The average property cost in Collingwood has doubled since 2017
According to CREA, the average cost of a home in Simcoe County has increased from $525,658 in January 2017 to $1,148,219 in January 2022. That’s an increase of over 100% in only five years. Although prices keep increasing, new listings on the market often don’t make it a month before an offer is accepted.
“The selling price of residential homes in the Collingwood area is steadily growing while the number of listings available remains low,” says Piotrowski. “This can only mean that the obvious demand for properties, and the continued bidding wars from desperate home buyers, is going to continue to impact the average sales price.”
Is there anything that could slow down this market?
The pandemic’s onslaught in 2020 provided Canadians with added financial support from the Federal government and extra time at home. In addition to lower interest rates, more people seriously considered and acted on a change of scenery. “When the Bank of Canada was predicted to announce a rate boost late last year, what didn’t help was the intense rush by Canadians with a fear of missing out mentality to act before the hike,” says Piotrowski.
As real estate prices will most likely continue to increase, most experts predict a slowdown in the rate at which it has been increasing (possibly to single digits by the end of 2022). So, there’s no reason to wait to begin searching for a property in the Collingwood area.
“We don’t know when things will cool down. If anything, increasing variable mortgage rates at the bank and deepening supply chain shortages in Eastern Europe might slow things down but time will only tell.” Overall, this area continues to provide an excellent investment opportunity for buyers, offering a four-season lifestyle and affordability relative to larger centres.
Considering buying or selling in the current Collingwood market? Start a conversation with Janet Piotrowski online.