The Barrie real estate market was consistent throughout 2023. The market responded to the rise in interest rates, as the government had hoped, which caused demand for real estate to decrease and prices to adjust downward.
This has helped bring the inflation rate down to a more manageable number.
In November, there were a total of 24 condo apartments that sold in Barrie with an average sale price of $513,688. Although this was a 7.3 per cent drop in the average sale price from October, the number of units that sold was almost double. These units sold in an average of 31 days and for 97 per cent of their list price.
The condo-townhouse sector in Barrie also saw a decrease in prices this fall. The average sale price for a condo townhouse in November was $464,333 — down by 14 per cent from October. There were nine units that sold and the average days on market to sell was 45 days. These units sold for 98 per cent of their list price.
It is important to note that these numbers may not be completely accurate as many sellers cancelled their listings and relisted at a lower price — rather than doing a price reduction, prior to a successful sale.
When a listing is cancelled and relisted, the data that is pulled is from the new listing and the information from the original listing does not get included in the recorded data.
For instance, say a seller chooses to lower their list price after being on the market for 60 days without a successful sale. If they cancel the listing and relist, those 60 days are not included in the average days on market and only the new list price will be used when calculating the list-to-sale ratio, not the original list price.
Sellers prefer to cancel and relist when changing their price as it makes their listing look fresh in the system and alerts buyers that are set up on an automated search.
Unfortunately, doing this does interfere with the true market data. This is just something to keep in mind when reading various real estate articles in a slow market.
Last week was the final announcement from the Bank of Canada for 2023 and it was good to see that the interest rates have remained unchanged. Higher interest rates could have a direct impact on one’s housing budget causing some buyers to potentially rethink their search location, property type and maybe their purchase altogether.
There may be some challenging times ahead for current homeowners whose mortgages are up for renewal in 2024. With interest rates being more than double compared to five years ago, many owners may not be able to afford their new payments causing some to be put in the position to sell.
If demand does not rise, this potential increase in inventory could put further downward pressure on prices.
That said, if there is a surplus of condo inventory and prices decrease, that just means more buyers in the condo market. Condominiums are an entry-level property type where most first-time buyers and investors start their search.
Condo living is also a lifestyle choice made by those who would prefer turn key, low maintenance living and community socials right in their complex. Because condominiums are one of the most affordable property types available for sale, there will always be buyers looking in this sector of the real estate market.
There are currently 128 condominium units for sale in Barrie, including 105 condo apartments and 23 condo townhouses.
