Guest Speaker Kim O’Grady: Kim said that it was good to see everyone. Since March of this year, there has been so much uncertainty and a sense of panic, as realtors had anticipated a great year for 2020. Realtors were told that they couldn’t show properties and it was a day-to-day scenario to keep informed. Only properties that had to sell were being listed. It was difficult for city people to get up here. Some protocols are still in place, with safety being the first concern. All interested parties have to fill out a questionnaire, with only two people, not extended family, being allowed to view a property, and masks must be worn, hand sanitizer used, and they are not allowed to touch anything. Now people are allowed to be a bit more relaxed.
Real estate has changed. They did not anticipate the demand for waterfront property in all price points. Lake of Bays, Fairy Lake, even in the $2 –$ 3 million range, are selling fast. People are coming up from the city to buy because they can work remotely. Inventory levels continue to be low. Covid 19 has taught us to have options and to have confidence going forward.
Kim showed slides of the last few months of activity, compared to last year. The busiest time for waterfront is normally March and April, but that occurred in May and June this year. People are feeling more confident to list their properties. It is hard to find any listings below $ 350,000. There are still fewer listings than in 2019. May residential sales prices are up from last year. South Muskoka surpasses Lake of Bays-Huntsville in price, although Lake of Bays and the chain lakes are catching up. South Muskoka has more sales this year, with less inventory than in 2019.
Most properties are selling at or close to list price, no matter the initial listing price. There are no signs that the demand is slowing down. Some people need to sell, such as American owners. Who knows where we will be at 6 months or a year from now. People are “catching the wave” right now.
Questions:
Verne: Where does the condo market sit, i.e. Deerhurst? Answer: Those condos couldn’t be shown at first, so they are just beginning to sell. Dairy Lane and similar condos are selling fast. Also, vacant lands are selling.
Verne: Who is buying condos? Answer: People who can sell a house high and go into condo living. People coming up from the city want more space.
Bill: The large new complex at Deerhurst, how is it doing? Answer: It is now listing, none have sold yet. These are for a niche market, vacation-type living, 800 square feet, two bedrooms.
George Young: How long will this market last? Answer: It is expected to last another few months, as long as there is no further shutdown and the economy continues all right. Fall is usually busy again from mid-August to November. The spring busy time is usually March to end of May. Our defined spring and fall markets are lengthening.
Verne: Where are the funds coming from? Answer: Lenders have tightened restrictions, but they are still lending. The banks are being careful.
Henri: What is the situation with commercial properties? Answer: Vacancy rates will be high for office/commercial buildings. Some may be converted to residential. We will need to think outside the box.
Adrian: What about vacant lands? Answer: People want to invest in real estate as opposed to investing in the stock market. Yes, vacant lands are also a hot commodity.
Vote of Thanks: Tim said that Kim is outstanding to work with. The club appreciated her talk today on the uncertain, changing real estate situation. He thanked Kim for her explanations.
President Ron commented that Rotarian Brian Loxton sent a message that he is on his boat and he will join in on the zoom meetings whenever he has internet connection.
Bill: Update on his wife Faylenore – she moved to Muskoka Landing last week after being in hospital for six months. Also, they celebrated their 58th wedding anniversary. Instead of writing poetry, he sang a song to Faylenore.
George: An update on his wedding on July 25 at 11 a.m. Only 5 people will be at the ceremony, but it might be streamed and he will let us know the link. His 97-year-old aunt will be playing the violin for the occasion.
Brandy: She is very proud of this club coming together to help member Trish Hawley through her cancer difficulties. She has had treatment and will have surgery in a week. Brandy thanked all who donated funds to provide products, ready-made meals, etc. She will be having more surgeries over the next year.
Will: He and Carol will celebrate their 40th anniversary on Sunday.
Hugh: Further to a story in the Canadian portion of the Rotarian, he commended a Rotary club in Alberta that has donated 109 large vehicles for service in Mexico.
Ken: He had cataract surgery on his other eye.
Ross: Thanked the volunteers for painting items for the auction that he is making. Jennifer S, Hugh, Gord, Will, Brandy, Dave will help. Ross will make up a schedule.
Dolores and Tony have moved from Pen Lake into Huntsville..png)
