There continues to be little urgency from condo buyers in Barrie as we move through the summer months.
Many buyers are still questioning what is in store for the real estate market in the short run and are watching the market closely. It is suggested that housing prices may continue to come down, if there is another interest rate hike in September.
July marked the slowest month for condo apartment sale in Barrie since January of this year. There were 19 units sold with an average sale price of $602,205.
Although the average sales price increased slightly from June, many properties continue to sit on the market unsold because the demand for condominiums in Barrie has been down.
Historically, July and August tend to be two of the slowest months of the year for real estate as many people are focused on summer holidays, various festivals, and spending time with family and friends. That said, the Barrie condo market could pick up in September once people are settled back in their regular routines.
Last month, there were 12 condo townhouses that sold in Barrie with an average sale price of $518,917 — down 13 per cent from June. Not only did the average sale drop from June, but the average days on market to sell doubled.
This shows that the demand for condo townhouses has dropped considerably since the spring. Unfortunately, the dominant buyers looking to purchase in this sector of the market are first-time buyers, and they are the buyer pool that has been affected the most by the increase in interest rates this year.
If no other condo were to hit the market in Barrie, it would take four months to sell all the current condo inventory. Last summer, there was only 2.5 months of inventory on the market.
With interest rates being much higher than last summer, there is no surprise that there are less buyers in the market.
A few things to consider when buying or selling in today’s market:
1. Get pre-approved and locked into a rate as soon as possible. Not only will you be more prepared if you find the right property to purchase, but you will be locked into the lowest rate possible.
2. Don’t let your competition dictate your list price. The market is slow and overpriced listings are sitting or going through a series of price reductions. Price competitively when you first hit the market and have the right marketing strategy in place.
3. Real estate is local. Not only does every city/town have its own market, but there are different pockets within its own local market. For instance, north Barrie could be experiencing different trends than south Barrie or one condo complex could be seeing different activity than others. Make sure to consult industry professionals to get the most up to date information in your area so you can make the most informed decision to meet your real estate goals, in this shifting market.
There are currently 96 condominiums for sale in Barrie, including 72 condo apartments and 24 condo townhouses.
* All stats are based on listings sold with the Barrie & District Association of Realtors