Demand for condominiums in Barrie remains high, although recently there have been signs of a slowing market.
Because the condo market is starting to change, coming up with the correct listing strategy is absolutely crucial.
In February, there were 38 condo apartments that sold in Barrie, which was double the number of units that sold than in January.
The average sale price increased 33 per cent from the same time last year, creating a new record high of $632,038 for this property type in Barrie. It took an average of 13 days for units to sell with properties selling for nine per cent over the original asking price.
Condo townhouses also hit a new record high for the average sale price last month. In February, the average sale price for a condo townhouse in Barrie was $664,417. There were 12 units that sold which only took an average of a week to sell.
The demand for these units has grown quite a bit since it has been nearly impossible for buyers to get into the freehold market, especially if their maximum budget was $700,000. This increased demand created bidding wars on units, which caused this property type to sell for 21 per cent over the original list price.
Although condominiums have been in a very high demand for all of 2022 so far, there are preliminary signs of a changing market.
Over the first 10 days in March, some condo units have been selling for much higher than the asking price and within days of being listed. Others were not getting any offers on their offer review date, causing the seller to rethink their list price.
After not receiving any offers, many sellers are now choosing to relist at a much higher price, because they originally expected to sell well over their list price, in hopes they will sell closer to what they feel is true market value. This happens when sellers are misled by their agent or market conditions or have too high expectations, which is actually quite common in a heated seller’s market that is slowly changing.
Hypothetically, if a seller receives zero offers on a property that is listed for $599,900, why would they think they would get offers after relisting at $729,900? Demand for the property type, seller competition and the buyer’s confidence in the market play a huge role when no offers are presented and the seller chooses to relist at a higher price.
There are definitely risks when using this strategy, as the most serious buyers walk through a given property in the first week of being listed. If you come up with the wrong listing strategy at the beginning, you risk losing the best buyer pool in the market.
When choosing a listing strategy for any condo type, it is important to consider the sub-markets that are within the condo market.
Examples of condo sub-markets are: individual condo complexes, location, size of unit, single level or multilevel unit, various views, age of building and maintenance fees and what they include. These, along with your living situation, competition at the time of listing and the property type should be well thought through.
This is why it's important to work with an agent who specializes in condominiums since there are so many differences from the freehold market. A condo-focused agent understands condominiums, the lifestyle and the various market trends within each condo complex.
There are currently 35 condominiums for sale in Barrie, including 24 condo apartments (four of which are assignments) and 11 condo townhouses.
