The Barrie Condo Market came to, what felt like, a complete halt in May. There were a number of external factors that influenced the market and caused it to slow and it is still unknown if the slowdown will be short lived or not.
After a record-breaking seller’s market in January and February of this year, the Barrie real estate market saw its first signs of a cooling market in March. Days on market started to grow and sellers were beginning to see fewer multiple offers on their homes. Many industry professionals were anticipating a slower than normal spring for both house and condo sales but it was almost impossible to predict the degree of the slowdown. It was so drastic that it felt like the market had frozen overnight.
External Factors that Aided in the May Slowdown
- We went from winter to summer weather overnight
- This year was the first spring in 3 years that we have not been in lockdown
- Mother's Day and the first long weekend of cottage season
- The Election
- The rise in gas prices and people rethinking long drives
Sellers have dominated the Barrie real estate market since 2019 and are now finding it difficult to understand the recent changes in the market. For the past 2 years, there were double digit appointments booked on new listings hours after properties were listed. Buyers lined up ready to outbid other buyers and bully offers were getting registered prior to the sellers requested offer date. The market was HOT and prices were rising by the day. Unfortunately, that has not been the case for many home sellers over the last month.
The May slowdown left many sellers concerned about selling their home in a decent time frame. There was not much urgency from buyers and appointments on listings were way down compared to the first quarter of the year. That said, the buyers that were booking appointments to view properties were serious and ready to put pen to paper.
In May there were a total of 19 condo apartments that sold in Barrie, which decreased quite a bit from April’s sales. The average sale price dropped 7% month-over-month to $596,242 and units were selling in 3 weeks, on average.
The condo townhouse sector took a larger hit last month. There were a total of 14 units sold with a 12% drop in average sale price from April to $602,214.
It is unknown what the rest of June will bring but with the increase in condo inventory and the decrease in demand, the Barrie market will probably be quite slow until the fall. If so, sellers will need to adjust their expectations with respect to the number of appointments being booked and have a listing strategy in place that will stand out and remain competitive.
If you’re looking to buy, this summer could be a perfect time. Sellers will be pricing more aggressively to stay competitive as inventory rises and with demand being down, you will be able to take your time when making a decision. That said, make sure to get pre-approved and locked into today’s interest rate before the next rate hike. The higher the interest rate, the less purchasing power you will have.
There are currently a total of 79 condominiums for sale in Barrie, Ontario; 64 condo apartments and 15 condo townhouses. When our June 2021 issue was published last year, there were only a total of 36 condominiums for sale in Barrie.
FOR SALE - Stunning 2+Den Condo Corner Unit with a Relaxing Treed View
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