The Barrie real estate market did not skip a beat over the holidays. The craziness of 2020 has moved right into 2021 with a vengeance.
Barrie’s freehold residential housing market is the hottest it has ever been! Pre-emptive bully offers on many houses for sale and the number of offers getting registered are in the double digits by the time the requested offer date rolls around.
In the first two weeks of this month, there were 41 freehold houses that sold, with median days on market being only seven and properties selling for nine per cent over their original list price, on average.
If prices continue to go up the way that they have in the freehold housing market, buyers will be forced to turn to the condominium market as condos are more affordable and its market is slightly less competitive. That said, well staged and properly marketed condominiums are attracting lots of buyers with many selling for their asking price and some for over. The two hottest parts of the condo market in Barrie right now are condo townhouses and units for sale under $400,000.
It is hard to believe that there have only been six condo townhouses available for sale in 2021 so far; four have sold, two are sold conditional and there are zero that are currently active. Because condo townhouse inventory is so low and demand is incredibly high, the average list-to-sale ratio is currently sitting at 112 per cent. That means this property type is selling for an average of 12 per cent over their original asking price.
All buyers should prepare in advance for multiple offers on condominiums that are listed for sale under $400,000. These entry level properties are a hot commodity in Barrie as many people are trying to get into the market before prices increase further. Are you pre-approved for a mortgage? Do you have a condo lawyer lined up to review the status certificate? Buyer’s cannot prepare enough when buying in a seller’s market.
Let’s shift gears and look at what happened in the Barrie condo market in the past year.
1. The average sale price for condo apartments sold; but not all closed, was $380,822.
2. The average sale price for condo townhouses sold; but not all closed, was $314,640.
3. Units were selling for an average of 98% of their original list price.
4. Average days on market for the whole condominium sector was 36 days.
5. At the beginning of January 2020, there were 48 condo apartments available for sale and 9 condo townhouses in Barrie.
1. The average sale price for condo apartments sold; but not all closed, was $428,235.
2. The average sale price for condo townhouses sold; but not all closed, was $468,950.
3. Units were selling for an average of 101 per cent of their original list price.
4. Average days on market for the whole condominium sector was 31.5 days.
5. There are currently 27 condo apartments available for sale and two condo townhouses in Barrie.
Year-over-year for the month of December, the average sale price for a condo apartment increased 12.5 per cent and 49 per cent for condo townhouses. The main reason for such a huge jump in the average sale price for condo townhouses was due to three high-end townhouses that sold for over a half a million. That said, if the three high-end sales were not included in the mix, the average sale price for this sector of the market would have still been north of $400,000.
The year 2021 is starting off its year with less condominium inventory on the market than Barrie did this time last year. Sellers are dominating the Barrie real estate market right now as the number of properties for sale at the moment cannot keep up with the heightened demand from Greater Toronto Area buyers.
Things to consider going into the Barrie real estate market in 2021:
1. Get pre-approved and have a very good understanding for condo ownership. This is a very fast pace market and you need to be completely educated and confident before competing with other buyers.
2. If you are looking to sell, do it now! Inventory is extremely low and it is unknown as to when this heightened demand from the Greater Toronto Area will ease up.
3. Hire a condo specific Realtor to assist you with your condo sale or purchase. The freehold housing market is completely different from the condo market right now so you might not get the best advice or guidance from someone that does not work in the Barrie condo market every day.
4. If you are a buyer, make sure you get the best guidance possible so that you can be competitive against other buyers but still be protected when putting in an offer on a property.
5. If you are a seller, make sure you understand the ins and out of holding off offers; reviewing on a specific day, and how to handle pre-emptive bully offers. There are so many angles to understand and if you are not fully informed it could cost you thousands of dollars.
* All stats are based on listings sold with the Barrie & District Association of Realtors