During the first quarter of the year, Barrie’s real-estate market was the most heated seller’s market in history. Inventory was at an all-time low and demand was extremely high, which caused properties to sell for record prices.
Buyers were presenting offers much higher than the asking price on the offer day and were willing to take the risk of going into the deal with no conditions to remain competitive against other buyers.
Sellers had the upper hand and had the opportunity to choose and work with the best offer on the table. These multiple bids put upward pressure on prices causing them to increase much faster than expected in Barrie.
It wasn’t until the end of March where the Barrie condo market started to see its first signs of slowing. Rather than having 10 offers on a unit, there were maybe only two. There were fewer bully offers taking place and some sellers were sitting empty handed on their requested offer day. These changes in the market forced sellers to re-evaluate their price and adjust their expectations.
Over the last two months, the market slowed more rapidly than most expected, causing Barrie to enter the first buyer’s market since the global pandemic was declared in March 2020.
In June, there were 25 condominium apartments that sold in Barrie. During May and June, the number of condo units sold in a given month started to drop and the average days on market grew. These were the first signs of the slowing market. The average sale price in June was $642,140 and units were selling for an average of 97.5 per cent of their original list price.
Last month, there were only seven condo townhouses that sold with an average sale price of $545,429. Many were selling within a few weeks of being listed with a sale-to-list ratio of 99 per cent. As more townhouse units come available for sale, the average days on market could grow as sales are down for this sector of the market.
There are currently 95 condos for sale in Barrie, including 66 condo apartments and 29 condo townhouses.
If no other condo were to hit the market in Barrie, it would take 2.6 months to sell all the current condo inventory. Only two months ago, in May, there were 1.45 months of inventory. With the supply of condos nearly doubling in the past couple of months along with the drop in buyer interest in Barrie, there is no surprise that the market has slowed down as much as it has.
There are a lot more options on the market for buyers as condo inventory continues to rise. If you are looking to sell, try to avoid chasing the market. Be competitive, having the right listing strategy in place and getting your price correct right from the start is absolutely crucial when you are listing in a shifting market.
If you are looking to buy, make sure to get locked into a rate before the next rate increase takes place. This could change how much a bank or mortgage broker is willing to lend you for your purchase.