Like many of today’s homebuyers, Jim Wright knew that if he wanted to get his foot in the door of affordable homeownership, he’d have to look outside of the GTA where he worked to make it a reality.
That was more than three decades ago, and Wright, now a local real estate agent, believes that even though the cost of a home in Barrie has increased in recent years — as well as historically high interest rates — Barrie can still offer that same choice to homebuyers today.
“It’s still affordable in relative terms,” said Wright, noting a townhouse in Barrie may start in the $600,000 range and can go up to around $800,000 depending on the unit.
“You’re not seeing anything in Toronto for $600,000, but people have to weigh it out," he added. "You chose your hard. Is it hard to live in Toronto and just keep paying someone else’s mortgage off by paying rent, or is it hard to move to Barrie, own your own place, but commute to work?”
Recent stats showed the average price for a detached home in the city was about $860,000, Wright said.
“It’s still not cheap, but it’s cheaper,” he added. “Your dollar sure buys you more now than it did a year and a bit ago, because the market has corrected somewhat. You’re not getting to the outlying areas so much for that $750,000 and under mark because the lots are bigger and the houses are typically bigger than what you’d get in a standard subdivision home in Barrie. It’s cheaper than the city, but it’s still not cheap.”
As for who is buying, Wright says he’s seeing a mix of people looking to relocate from the Toronto area as well as those simply moving with the city.
Usually, the real estate market is buzzing this time of year, but this spring was unusually sluggish, he said.
‘It’s been very interesting because it was not been a traditional spring market … although it seems nothing has been traditional since COVID. It showed early signs of being a decent spring, but then things just sort of hit the brakes and it’s been very flat,” said Wright. “Everybody is just trying to piece it together and (wondering) why.”
One thing Wright and his colleagues agree on is that there is a pent-up demand, but that people are simply waiting to see what happens with the interest rates.
“They’ve been promised this interest rate reduction since last year essentially … and in all honesty, it will be a very small reduction and isn’t all that meaningful, but signals to buyers that hopefully the worst is behind us," he said. "I think when that happens, buyers are going to come out and that’s when we are going to see the market pick back up again.. At least that’s the theory at this point, anyway.”
While the housing market is not seeing its usual spring rush, the local condominium market is a bit more balanced, noted local sales representative Ashley Lamb, who also writes a regular column about the local market for BarrieToday.
“There is a huge gap between the housing and the condo market. They are completely different right now,” she said, noting while the housing market was recently more of a sellers' market with about two months of inventory, the condo market was beginning to move into more of a buyers' market and had about four months of inventory.
Both Lamb and Wright said open houses have slowed down immensely.
“The real estate market is unpredictable in so many ways," Lamb said. "You’re having some that are getting multiple offers and then others that are sitting on the market for like three months."
While home ownership may seem like an unattainable goal to many, Lamb says one way of getting your foot in the door, especially in Barrie, is to consider the condo option.
“Two years ago, prices were much higher. We have such a huge surplus in condos right now that properties are just sitting," she said. "Sellers are adjusting their price and they’re starting to come back down."
She recently saw a couple of condos priced under $300,000 for the first time in several years.
“You couldn’t even get anything under $400,000 a couple of years ago. There are definitely opportunities coming up for those first-time buyers in the condo market," said Lamb. "They’re a good entry-level type property and are the most affordable … and it’s a good way to start, especially if you’re a younger buyer. They are becoming more affordable.”
While Lamb acknowledges she’s not currently seeing a ton of first-time buyers right now — most of her clients have been a mix of people coming up from the GTA, as well as a lot of buyers local to the area considering downsizing and having a lifestyle change — she thinks it’s merely a matter of time before she begins to see an influx of those first-time buyers out looking again.
Lamb believes those buyers are simply on the sidelines, waiting for the interest rates to come down, before they wade into the market completely.
“They’re (already) stretching themselves thin, but if the interest rate comes down even a quarter of a point, then they could hop into the market and be able to afford it that much more,” she said. “That said, I know there’s a lot of pent-up demand and people waiting to see what happens with the market.
"I feel that when the interest rates do come down, there could be a lot more buyers and the market could be that much more active," Lamb added.
The days of buying a home without an inspection or financing clause — as was often seen during the pandemic — is gone, said Wright, adding currently there’s about a three-month supply of homes in the city.
“They’re just not flying off the shelves like they were … A lot of offers are coming in with the sale of purchaser's property (SPP) clause. We haven’t seen those conditions for years, but they’re back now," he said.
The challenge with a slower market, Wright explained, is it means a buyer can often fall in love with a property, but are not able to “firm up” on an offer until they’ve sold their own property.
“There is no guarantee with this market right now," he said. "In a normal spring market, I can be pretty comfortable in saying yes, we will be able to move your home … but right now you just never know. We are seeing houses get listed and expire.
“That’s the challenge now. Do you sell your house first so you know how much money you have … (because) people can’t afford to carry two homes. That’s a huge stretch for people," Wright added. "People sometimes think with their heart and it can come back to bite them in the butt later when they realize they have to carry two mortgages.”
Lamb agrees.
“If you haven’t sold yet, you know in the back of your heart you might lose out and have to start again," she said. "It is quite an emotional roller-coaster for buyers that need to sell at the same time."
As for what buyers are looking for, everyone’s wish list is different, said Wright, but typically those moving from outside the area are drawn to more than just what is contained between the four walls and a roof. They're also drawn to what the region has to offer.
“Compared to the city, the traffic is better (here). You’ve got so many things to do in Barrie. You’ve got Kempenfelt Bay, you’ve got the playground down there, you’ve got skiing, snowshoeing. Here, it’s in your backyard," he said.
"Those are the things that are appealing to those who are looking to have more of a lifestyle as opposed to just living in an apartment in the city."
