January was one of the tightest months that Barrie’s condo market has ever seen. Demand has been incredibly high for the Barrie and surrounding area, and the market has become extremely competitive among buyers.
Most sellers have chosen to hold off offers and review them on a specific date to maximize their return, but many buyers have been ignoring the seller’s request and submitting pre-emptive bully offers — which is handing in an offer prior to the seller’s requested review date.
Buyers use this strategy to shorten the timeframe for other buyers to view the property in hopes it will reduce their competition when the seller reviews offers. This has caused properties to sell for new record prices in certain condo complexes and within days of being listed for sale.
In January, there were a total of 20 condo apartments that sold in Barrie, with an average sale price of $609,950, which is down from December but up 32 per cent from the same time last year. The average days on market was 15 days and units were selling for 10 per cent over the original asking price.
Last month, there were only 11 condo townhouses that sold in Barrie. With demand being so high and supply extremely low, units were selling for 19 per cent over the original list price. The average sale price increased 13 per cent from December and exceeded $600,000 for the very first time in Barrie. The average sale price recorded in January was $636,855.
The one thing that people should keep in mind when looking at the average days on market is that it includes any conditional periods. The sale is not technically recorded until all conditions have been waived by the buyer or seller. Although Barrie is in a very tight market, it is not uncommon for a condominium to sell with a condition of the buyer’s solicitor reviewing the status certificate.
For example, let’s say a property hit the market and was active for sale for four days, at which point the seller accepted a conditional offer from a buyer. The buyer waived their condition six days later and the sale was recorded. The days on market will be recorded as 10, even though the property was only available for four days. Unfortunately, the recorded ‘days on market’ has to include the conditional period in case the buyer does not waive their conditions causing the property to come back on the market.
The Barrie condominium market started off 2022 with the lowest condominium inventory in history. In January, active condos listed on the market at a given time fell between 10 and 15 units. There are currently more than 20 condominiums for sale in Barrie. So as long as more condo units continue to come available for sale, bringing the market closer to an equilibrium state, there should be fewer competing offers on properties which should help slow the rise in prices down.
