After an incredible six months of record-high sales in Barrie, we have started to see the first signs of the condo market slowing.
The average days on market to sell a condo apartment in Barrie has begun to increase and most units are no longer selling for over their list price.
When submitting an offer, many buyers are back in a negotiating position with sellers which is a nice break from the ongoing bidding wars buyers have been faced with for most of 2021.
Because of this shift, sellers should be very careful and choose their listing strategy wisely if they are intending on putting their condo up for sale.
Last month, there were 31 condominium apartments that sold in Barrie. The number of units sold in a given month has dropped since May and the average days on market has grown. These were the first signs of a slowing market.
The average sale price in June was $566,520 (median $502,000) and units were selling for an average of 100 per cent of their original list price.
On the other hand, the condo-townhouse sector is still on fire! Most units are still selling for well over the asking price and the average days on market has remained unchanged from the spring market. There were 21 units sold in June, with an average sale price of $466,571 (median $450,000) and properties were selling for 108 per cent of their original list price, on average.
There are multiple reasons why the condo townhouse market would be more desirable than a condo apartment. This would include:
- larger property
- multi-level separation
- more outdoor space including a backyard
- many have private garages
- private driveways
- lower maintenance fees
- very pet friendly
- cheaper in terms of price per square foot
When the freehold residential housing market in Barrie exploded last year, many buyers turned to condo townhouses as they were more affordable and still offered the end-user room to grow.
Switching Gears – Half-Year Review – 2020 vs. 2021
During the first six months of 2020, there were 199 condominium units sold in Barrie. The overall average sale price was $383,778, the average days on market was just over a month and a half and units were selling for 98.5 per cent of their original list price.
At the beginning of March 2020, the condominium market had just started to take off. Buyers and sellers were preparing for a wild spring as prices were climbing and units were taking less time to sell. Then... the pandemic hit. The real estate market paused until the final month of the second quarter.
Fast forward to 2021. January through to the end of June was crazy, to say the least. Sellers dominated the Barrie real estate market, leaving many buyers unhappy and stressed. There was a total of 323 condominium units that sold, with an overall average sale price of $492,550. Units were only taking three weeks to sell and were going for 104.5 per cent of their original list price, on average.
The real estate market always experiences peaks and valleys throughout any given year. Industry experts did not know what to expect at the beginning of the pandemic and it is interesting to now reflect on the last year and a half. There were predictions that there was going to be a recession comparable to the one in the early 1990s and others thought there was going to be growth.
Now that the economy has moved into Stage 3 of reopening, expect a slow summer for the condo market in Barrie. After 15 months of restrictions, society will be focusing on getting out and doing things they have missed. That said, historically when there is a slow summer for real estate, it is followed by a boost in the market come the fall.
There are currently 39 condominiums for sale in Barrie, including 27 condo apartments and 11 condo townhouses.
