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CONDO REPORT: Decreased condo demand has ripple effects

'Since the market peaked in April, prices have been slowly coming down and are now back down to where they were in the fall of 2021,' says columnist
USED 2019-03-14 Waterfront condos RB
Condos overlooking Kempenfelt Bay in Barrie. | Raymond Bowe/BarrieToday file photo

Demand for condominiums has decreased in Barrie since Thanksgiving, causing properties to take much longer to sell.

It is expected for the real estate market to slow further as Barrie moves into the colder months and interest rates continue to rise.

In October, there were 16 condo apartments that sold in Barrie with an average sale price of $543,219. Since the market peaked in April, prices have been slowly coming down and are now back down to where they were in the fall of 2021.

In addition, this softening in the real estate market has caused other shifts. The average days on market grew to 69 days and units were selling for 96 per cent of the original asking price. The real estate market has changed quite a bit since the peak of the market in April. Six months ago, this property type was recording the average sale price at $645,174 and units were selling in an average of 19 days.

There is much more inventory for buyers to choose from and there is not the same kind of urgency, like there once was, for people to make a move. Buyers feel more comfortable taking their time and waiting to see if the market is going to continue to soften.

Last month there were seven condo townhouses that sold in Barrie with an average sale price of $511,143. The average days on market grew to 94 days, which is almost double from September, and units were selling for 95 per cent of the original asking price.

Demand for this property type has dropped considerably as freehold houses have become much more affordable over the recent months. As a result, many buyers have chosen to shift their focus toward freehold townhouses or semi-detached homes rather than focusing on condo townhouses, which was once the best bang for your buck in the marketplace.

When listing, condo sellers should keep in mind that there is currently 2.75 months of overall condo inventory on the market in Barrie. What does this mean? If no other condo comes available for sale, it will take two months and three weeks for all available condos to sell.

A few things to think about:

  1. What can you do differently to catch more buyers’ interest?
  2. What are the unique attributes of your condo that might not be offered elsewhere (complex amenities, complex community, unit features and upgrades, etc.)?
  3. Is the marketing campaign that you are committing to highlighting all attributes of your unit and condo complex and targeting as many potential buyers as possible? Don’t forget that condo buyers aren’t just buying your unit; they are interested in what the whole complex has to offer and are buying into a lifestyle.
  4. Are you getting advice from an excellent group of condo professionals (Realtor, stager/designer, photographer, lawyer, etc.)? Listing and selling a condo is quite different from a house.

If you are in the market to purchase a property, go get pre-approved and lock into today’s rate. Interest rates will continue to go up in the attempt to bring inflation down. It would be wise to speak to your bank but also get a second opinion from a mortgage broker as well.

There are currently 89 condominiums for sale in Barrie, including 79 condo apartments and 10 condo townhouses.

All stats are based on listings sold with the Barrie and District Association of Realtors

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Ashley Lamb

About the Author: Ashley Lamb

Ashley Lamb is a local condo expert who writes a monthly column about statistics and trends in the Barrie real estate market
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