There has been lots of doom and gloom in the media and with the implementation of the foreign buyer tax, many buyers have decided to put their searches on hold to see if there’s going to be a short term slow down or a market correction. That said, I have noticed that the condo market in Barrie has been going through a transition over the past couple weeks. Some waterfront condos and others on Coulter and Ferndale sold below asking but probably would have sold over if they listed a month prior.
Average sale price for condo apartments in Barrie decreased by 7% in one month and average days on market is now over 2 weeks. We did see growth in the townhouse sector; up 11% from April, but that’s because townhouses offer multi-level living and are still cheaper than any freehold house available.
The days where sellers can list at whatever price they want and receive multiple bids on the table are few and far between. Properties are taking longer to sell with fewer offers being presented as most buyers are not interested in getting into competition. We are still in a seller’s market but I expect the market to be less competitive throughout the summer months.
The implementation of the foreign buyer tax is only one factor as to why the market has slowed down. I also believe the market can only boom for so long until it needs to cool. Historically the winter and summer months are the slowest, the spring is the hottest and the fall is somewhere in the middle. This year Barrie’s real estate market as a whole was booming in the first week of January and had rapid growth for 5 months straight; partially influenced by the new mortgage rules. Buyers are fed up and want to take a rest. Normally when there is an early start to a spring market, things tend to slow down after May long weekend. And that’s exactly what happened this year.
My suggestions and interpretations moving forward:
1) Sellers need to adjust their expectations. Pricing is absolutely crucial now more than ever if you want to sell at the highest price possible. You can’t expect to get over your list price, especially if your unit isn’t presented well or if you don’t have the right marketing campaign.
2) Expect a more balanced market throughout the summer.
3) Buyers, this is a perfect time to buy! You will have some room to negotiate with sellers as other buyers are staying clear of bidding wars.
4) The fall market will be strong! In my experience when the government implements new rules a regulations, there is normally a 2-3 month slow down then the market bounces back. I’m expecting this slow down to be short lived.
Inventory is up from last month. There are currently 33 condo apartments for sale and 25 condo townhouses.
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