Last year was a very challenging year for buyers in the Barrie condominium market.
There were only four months in 2021 where buyers did not see competing offers on every condo unit for sale. These four months gave some buyers hope and an opportunity to finally get their foot in the door and buy a condo to call home.
During these “slower” months, minimal sellers were holding off offers when selling their condos, which caused there to be fewer bidding wars. Even though there were not as many multiple offers on condos during these months, the market was still very tight. Units were selling within 24 to 48 hours of being listed and for their asking price, if not a tad more, but buyers had the opportunity to keep necessary conditions within their offers.
For the better part of last year, buyers were forced to make a quick decision in order to secure a property. The well educated and most prepared buyers were the ones who ended up having a successful transaction. The same will likely be the case for 2022.
Condo buyers should continue to prepare in advance for multiple offers. Inventory is the lowest it has ever been in Barrie and demand is still very high. Sellers are back to holding off offers and some sellers are accepting pre-emptive (bully) offers, with the ability to review offers prior to their requested offer date. That said, sellers will only entertain a pre-emptive offer if it's enticing enough not to wait until the offer date.
Condominiums are a hot commodity in Barrie because many people have been priced out of the residential freehold housing market. Are you pre-approved for a mortgage? Do you have a condo lawyer lined up to review the status certificate? Buyers cannot prepare enough when buying in a seller’s market.
The low supply of condominiums in Barrie in 2021 caused there to be a huge hike in prices. The demand to live in the Barrie area increased rapidly during the pandemic and supply could not keep up. This has driven prices up to a new record level. Year-over-year for the month of December, the average sale price for a condo apartment rose 47 per cent and condo townhouses increased 20.5 per cent.
December 2020:
1. The average sale price for condo apartments sold, but not all closed, was $428,235
2. The average sale price for condo townhouses sold, but not all closed, was $468,950
3. Units were selling for an average of 101 per cent of their original list price
4. Average days on market for the whole condominium sector was 31.5 days
5. At the beginning of January 2021, there were 27 condo apartments available for sale and two condo townhouses in Barrie
December 2021:
1. The average sale price for condo apartments sold, but not all closed, was $630,028.
2. The average sale price for condo townhouses sold, but not all closed, was $565,333.
3. Units were selling for an average of 110 per cent of their original list price.
4. Average days on market for the whole condominium sector was 13 days.
5. There are currently 14 condo apartments available for sale, three of which are assignment sales for condos that are not yet built, and three condo townhouses in Barrie.
The Barrie condominium market is starting off 2022 with the lowest condominium inventory in history. Sellers are dominating the Barrie real estate market right now as the number of properties for sale at the moment cannot keep up with the heightened demand from buyers; out of town and locally.
Things to consider going into the Barrie real estate market in 2022:
1. Get pre-approved and have a very good understanding for condo ownership. This is a very fast-paced market and you need to be completely educated and confident before competing with other buyers.
2. If you are looking to sell, do it now! Inventory is extremely low and it is unknown how many properties are going to hit the market come the spring.
3. Hire a condo specific Realtor to assist you with your condo sale or purchase. The freehold housing market is completely different from the condo market right now so you might not get the best advice or guidance from someone that does not work in the Barrie condo market regularly.
4. If you are a buyer, make sure you get the best guidance possible so that you can be competitive against other buyers but still be protected when putting in an offer on a property.
5. If you are a seller, make sure you understand the ins and outs of holding off offers; reviewing on a specific day, and how to handle pre-emptive bully offers. There are so many angles to understand and if you are not fully informed it could cost you thousands of dollars.
* All stats are based on listings sold with the Barrie & District Association of Realtors
