The 2022 real estate market in Barrie has been quite a mixed bag.
The year started off with one of the strongest seller's markets in history for Barrie, which then slowed rapidly at the beginning of the second quarter and continued to slow throughout the summer months. This slowdown caused prices to go back down to where they were in the fall of 2021.
The first quarter of 2022 was the most dominant seller’s market that Barrie had ever experienced. Inventory was at an all-time low and buyers were bidding on properties causing prices to rise by the day. Many sellers decided to take advantage and cash in on their investment, rather than waiting for the spring market; which is historically the best time to sell.
There was a total of 132 condominium units that sold in Barrie during the first quarter of 2022. These units took an average of 14 days to sell and recorded an average sale price of $637,038, resulting in a 35.7 per cent increase in the average sale price year-over-year.
As Barrie moved through the second and third quarters, buyer demand decreased and more properties came available for sale. This caused the average days on market to begin to grow which then started to put downward pressure on prices.
During the second quarter of this year, there were a total of 107 condominium units sold in Barrie. These units took an average of 20 days to sell and recorded an average sale price of $619,714.
In the third quarter, there were a total of 76 condominium units sold in Barrie. These units took an average of 43 days to sell and recorded an average sale price of $528,949. By the end of Q3-2022, the average sale price had gone back down to where the market was in the fall of 2021.
There were many different external factors that aided in this year’s slowdown that started in Q2-2022:
– Barrie went from winter to summer weather overnight.
– This year was the first spring in three years that the economy was not in lockdown.
– People were able to go away for long weekends and there were no restrictions on large gatherings for the first time in years.
– There was a provincial election. Historically, the real estate market gets quiet around all elections.
– There was a huge rise in gas prices, which made people rethink long drives and a move that would require a long commute.
– The increase in interest rates which had a negative effect on buyers' purchasing power.
Although there were signs leading up to the slowdown in the market, it was almost impossible to predict exactly when the top of the market was going to be and nobody could have predicted how quickly the market was going to slow.
There were many happy sellers that took advantage of the height of the market at the beginning of this year; especially investors that only had property to sell, but some missed the boat. If you were buying and selling in the same market, there wasn’t much of a gain.
Lastly, let's isolate September’s numbers. Last month, there were 15 condo apartments that sold in Barrie and only eight condo townhouses. The average sale price for a condo apartment was $584,900 and units took an average of 53 days to sell.
The average days on market to sell a condo townhouse last month was 54 and the average sale price was $452,863.
If Barrie were to follow the most recent market trends, the market will most likely continue to slow over the winter.
There are currently 85 condominiums for sale in Barrie, including 71 condo apartments and 14 condo townhouses.