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CONDO REPORT: Market screeched to a halt in May

'It was so drastic that it felt like the market had frozen overnight,' says columnist
USED 2022-05-08 Barrie condos MK(1)
Condos at the Barrie lakeshore. | BarrieToday files
The Barrie condo market came to, what felt like, a complete halt in May. There were a number of external factors that influenced the market and caused it to slow, and it's still unknown if the slowdown will be short lived or not.

After a record-breaking seller’s market in January and February of this year, the Barrie real estate market saw its first signs of a cooling market in March. Days on the market started to grow and sellers were beginning to see fewer multiple offers on their homes.

Many industry professionals were anticipating a slower-than-normal spring for both house and condo sales, but it was almost impossible to predict the degree of the slowdown. It was so drastic that it felt like the market had frozen overnight.  

External factors that aided in the May slowdown:

- We went from winter to summer weather overnight

- This year was the first spring in three years that we have not been in lockdown

- Mother's Day and the first long weekend of cottage season

- The provincial election

- The rise in gas prices and people rethinking long drives

Sellers have dominated the Barrie real estate market since 2019 and are now finding it difficult to understand the recent changes in the market. For the past two years, there were double-digit appointments booked on new listings hours after properties were listed.

Buyers lined up, ready to outbid other buyers and bully offers were getting registered prior to the sellers requested offer date.

The market was hot and prices were rising by the day. Unfortunately, that has not been the case for many home sellers over the last month.

The May slowdown left many sellers concerned about selling their home in a decent time frame. There was not much urgency from buyers and appointments on listings were way down compared to the first quarter of the year.

That said, the buyers that were booking appointments to view properties were serious and ready to put pen to paper.

In May, 19 condo apartments sold in Barrie, which decreased quite a bit from April’s sales. The average sale price dropped seven per cent month-over-month to $596,242 and units were selling in three weeks, on average.

The condo-townhouse sector took a larger hit last month. There were 14 units sold with a 12 per cent drop in average sale price from April to $602,214.

It is unknown what the rest of June will bring, but with the increase in condo inventory and the decrease in demand, the Barrie market will probably be quite slow until the fall. If so, sellers will need to adjust their expectations with respect to the number of appointments being booked and have a listing strategy in place that will stand out and remain competitive.

If you’re looking to buy, this summer could be a perfect time. Sellers will be pricing more aggressively to stay competitive as inventory rises and with demand being down, you will be able to take your time when making a decision.

That said, make sure to get pre-approved and locked into today’s interest rate before the next rate hike. The higher the interest rate, the less purchasing power you will have.

There are currently a total of 79 condominiums for sale in Barrie, including 64 condo apartments and 15 condo townhouses.


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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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