September was the first time this year the Barrie condo market experienced a decrease in prices and average days on market nearing a month. I am happy to say that this trend did not continue through October. Condos are back selling in record time and average sales price for condo apartments increased by 9.52% and 20.09% for condo townhouses over the last month.
Why such a change from one month to another?
1) Barrie’s condo market did not have a seasonal slowdown this summer so September could have been the softening that we have experienced in previous years during July and August.
2) The implementation of the new mortgage rules have caused buyers to scramble for a property before their pre-approvals expire. This has created an irregular short-term boost in the market that we wouldn’t normally see.
Many people have been asking me if they should sell now or wait until the spring. Unfortunately I don’t make the market, I simply interpret it. What I can tell you is:
1) Demand will be higher than in previous years over the next couple of months because of the new mortgage rules that went in place on October 17th. (This could put upward pressure on prices)
2) The pool of buyers could be lower than normal this spring if interest rates increase. TD Bank raised their prime rate this week and it is only a matter of time until the other banks follow suit. It will be interesting to see if they make any changes to the fixed rate over the next couple of months. (This could put downward pressure on prices)
3) Supply is low right now so if you listed your condo, you would have more control over your asking price. Historically most people wait until the spring but what many don’t realize is that if you wait and sell at the same time as everyone else, you will be in competition with more sellers. That said, you will have to price your condo in line with your neighbours to attract buyers to your home rather than to theirs.
4) If Toronto has a market correction in 2017, Barrie’s market will be indirectly affected. A good chunk of buyers moving to Barrie are from the GTA so if a correction were to take place, demand will decrease causing prices to level off or possibly drop.
That said, it is a fantastic market to sell in right now and it could be a great spring market as well. But there are always risks when chasing the market in hopes prices will be higher in a handful of months.
Inventory is currently sitting at 28 condo apartments available and 15 condo townhouses. If you own a condo and are curious for what it might fetch in today’s market, please reach out so we can discuss the best selling strategy for achieving your goals.
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Know of anyone looking to buy, sell or invest in a condominium? Please let me know, I love referrals!!
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