People who are looking to purchase condominiums in Barrie are taking their time while making their decision.
Many buyers are still questioning what's in store for the real estate market during the final two quarters of the year and are watching the market closely.
If interest rates continue to rise in the attempt to control consumer spending and bring down inflation, the market could soften, putting downward pressure on prices.
High-end condominiums and houses in the Barrie and surrounding areas have already started to see the market slowing down as a result of the increase in interest rates. Because of the increased cost of borrowing, many buyers are unable to enter the luxury market due to affordability.
Unfortunately, some buyers have had to revise their budget if they had not got pre-approved by a lender and locked into a rate or if their rate hold had expired, which is normally 90 days from the initial pre-approval.
In June, there were 23 condominium apartments that sold in Barrie, which marked the slowest month for condo apartment sales since February of this year.
Although units were selling relatively close to the seller’s asking price — sale-to-list ratio was 97 per cent — there were less properties sold because demand was low.
The average sale price in June for this property type was $586,452, down nine per cent from July 2022. The average days on market to sell was 55 days.
The condo-townhouse market continued to be a hot commodity among Barrie buyers. Last month, there were 10 condo-townhouses that sold in Barrie with an average sale price of $596,340, up slightly from this time last year. Many units were selling within three weeks of being listed with a sale-to-list ratio of 104 per cent.
During the first half of 2023, the Barrie condo market experienced waves of interest from buyers. Some weeks were extremely slow with very little action on listings and others there were many appointments being booked.
This is expected to continue as buyers rush to purchase before their rate hold expires, at the same time as the economy adjusts to the higher interest rates.
As buyers and sellers adapt, it is important to work with professionals that are educated on the ongoing economic changes in the industry and the effects these changes have on the real estate market.
There are currently 99 condos for sale in Barrie, including 80 condo-apartments and 19 condo-townhouses.