The first quarter (Q1) of 2021 started off relatively slow for the Barrie condo market, but after buyers in the housing market got fed up with the aggressive bidding wars and skyrocketing prices, many turned to condo ownership as it was less competitive and more affordable.
From mid-February to mid-March, condominium supply in Barrie was the lowest it had been since 2017, giving sellers the opportunity to push the market.
Sellers priced their units below market value and set an offer review day, approximately five days after their property hit the market. This was to attract as many buyers as possible in a short period of time in anticipation of generating multiple bids on the set offer presentation day.
If successful, the seller would receive at least one offer over their asking price, possibly without any conditions, netting the seller the most money possible.
This strategy is very common in seller dominant markets and has been used by GTA Realtors for over a decade.
Condo sellers caught wind of Barrie’s hot condo market and many decided to cash in. As we moved toward the end of March, condo inventory started to rise giving buyers more to choose from. As supply increased, many offer presentation days came and went with some units without any offers on the table or maybe only one.
Hot layouts with premium views were still selling over asking and most within 48 hours of being listed, but others with less desirable views or units without any upgrades were starting to take longer to sell.
This was the first sign that the market could be slowing and sellers were going to have to start rethinking their listing strategies. On the other hand, buyers finally had an opportunity to slow down and take a breath.
In March, there were a total of 36 condo apartments that sold in Barrie. The average sales price was up minimally from February highs and units were still taking an average of three weeks to sell.
The average sale price last month was $489,451 and the median was $448,950. The sale-to-list ratio was slightly down from February where units were selling for 103.5 per cent of their original asking price.
Condo townhouse sales tripled in March from February recording a total of 32 sales in Barrie. Units were selling for an average of $452,696 (median $442,500), in an average of 12 days (median 10 days), but for 110 per cent of the original list price.
Although sales increased last month, the average sales price actually decreased and days on market grew, but why were units still selling for 10 per cent over asking?
Condo townhouse sellers were still listing below market value and reviewing offers on a designated day. Sellers using this strategy were still generating multiple offers because of the increased demand for this property type. This caused properties to sell over asking, but not put upward pressure on the total average sales price as the list price was in fact lower.
Condo townhouses offer multi-level living and many with private driveways and garages, which is a great option for those who are priced out of the freehold housing market.
Overall, the first quarter of the year was shocking considering we have been in a world pandemic for over a year and the winter slowdown we normally see in Barrie was non-existent.
The average sale price for the whole condominium market in Barrie in Q1-2021 was 23 per cent higher than Q1-2020 and condo units were taking 50 per cent less time to sell this year than last.
There are currently a total of 28 condominiums for sale in Barrie — 12 condo apartments and 16 condo townhouses.
Although buyers might not see condo sellers reviewing offers on a certain day, know that premium units are still selling within days of being listed and some for over the asking price. It is the less desired properties that have stayed on the market a bit longer.
With inventory still very low, the Barrie condo market is still in a seller-dominant market.
* All stats are based on listings sold with the Barrie & District Association of Realtors
