After a buzzing spring market for Barrie condos, the expected summer slowdown hit.
When the government announced that Ontario was going to move into Step 2 of reopening the economy, two days ahead of schedule, many buyers and sellers put a pause on their real estate needs and shifted their focus on getting a taste of ‘normal’. Cottaging, boating, camping, shopping, dining out and various sporting activities have been the priority for most.
Comparing this summer with last year, 2021 has been very different than in 2020. Last summer, the market started to explode in June when the economy reopened after its first lockdown of the pandemic.
The market remained strong throughout the summer and fall months causing a steady increase in condo sales, mainly driven by buyers from the Greater Toronto Area.
This summer, the condo market slowed right down at the end of June when Stage 2 received the green light to move forward ahead of schedule and continued to slow when Ontario moved into Stage 3 of its reopening plan mid-July. Buyers had enough of the bidding wars and wanted to take a break from what was Barrie’s most competitive buyers' market in history.
In July, buyer demand dropped, causing prices to adjust. The average sales price for a condo apartment decreased nine per cent from June. Although, units were selling for 99 per cent of their original list price and average days on market went from 30 days to three weeks.
The same was the case for the condo townhouse sector in Barrie. Even though bidding wars were still taking place and units were selling for 102.8 per cent of the seller’s asking price, there was an eight per cent decrease in the average sale price from June to July.
Over the first two weeks of August, there has not been much of a change in the average sales price for both condominium sectors in Barrie, but units have been taking noticeably longer to sell. Some properties recorded taking 47 days, 56 days and even 64 days to sell. This would not have been the case back in the spring.
That being said, there has been an extraordinary increase in the average sales price for condominiums in Barrie since last summer. Year-over-year for the month of July, both the average sale prices for condo apartments and condo townhouse increased 15 per cent. This was largely due to a low supply in condominium inventory throughout the year and the heightened demand from out-of-town buyers during the pandemic.
It is thought that there will be a strong fall real estate market to follow the more traditional slower summer market in Barrie, but keep in mind there is a federal election on Sept. 20. Elections can influence consumer choices when trading real estate, where many decide to hold off on buying or selling property until after they know the outcome of an election. This could cause there to be a slower fall market than predicted.
There are currently 27 condominiums on the market in Barrie Ontario, including 21 condo apartments and six condo townhouses.
* All stats are based on listings sold with the Barrie & District Association of Realtors
