The Barrie condo market was quite balanced in October where units were taking 40 days, on average, to sell and the majority selling below their asking price. Buyers have been able to take their time and are happy to be back in a negotiating position when presenting an offer. I have noticed that sellers have accepted this new reality and are starting to lower their expectations and are pricing accordingly.
The average sale price for a condo apartment in Barrie last month was $340,000, down from the summer as inventory increased when we moved into the fall market. On the other hand, average sale price for a condo townhouse was up since August, surpassing the $300,000 price point at $306,941.
The main question people have been asking me over the past few weeks:
“How are the new mortgage rules going to impact the market?”
1) With many buyers having to purchase before January 1st, expect demand to be higher over the next two months as people scramble to meet the deadline. January and February will be quiet.
2) Prices will come down in 2018. The new rules are going in place to tighten up consumer spending. Buyers won’t be getting approved for as much money in the new year, which will cause demand to decrease and put downward pressure on prices.
3) Prices for higher end homes will drop more than properties that are more affordable.
What does all this mean for the Barrie condo market?
- More buyers will be turning to the condo market as they will be priced out of the housing market.
- The new mortgage rules won’t have much of an impact on condos priced under $300,000.
- Higher end units will take longer to sell and their prices will drop.
- Overall demand in Barrie will go up as more investors and end users will move north of the city because properties are cheaper; Barrie is still the cheapest city to live in that is connected to Toronto.
After looking at our local market and the GTA, it’s hard to say how much prices will go down here. Come March, we will see the impact these new rules will have on the Barrie condo and housing markets.
If you are thinking of selling, I wouldn’t suggest waiting until the new year. Take advantage of the higher demand now as it’s likely you will get less for your home after January 1st, 2018.
For those who are thinking of doing an upgrade to a larger home, you might be effected by these new rules. It would be a good idea to reach out to your lender to compare your options before and after the rule changes. The difference could be a 20% decrease in purchase price, which is substantial!!
There are currently 48 condo apartments for sale and 23 condo townhouses. If you own a condo and are curious of its value, please reach out so we can discuss the best selling strategy for achieving your goals.
Have questions about the Barrie Condo Market? I would love to hear from you!!
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