The Barrie condo market was quite the mixed bag during the first three quarters of 2020.
First, the market was quite normal, where sales were climbing as we pushed through the winter market.
We were then faced with our very first ‘market pause’ where buyer and seller uncertainty flooded the market.
Lastly, we were forced to change our ways overnight where the new norm was bidding wars creating record high pricing.
It has been a complicated nine months for real estate, to say the least.
There were 59 condo units sold in Barrie in September. The number of units sold was higher than the previous two months, but demand was no longer putting upward pressure on prices like it was when the economy first reopened. Some condominiums were selling for as high as 104 per cent of their original list price while others for as low as 90 per cent. Where sellers landed depended on their current competition, pricing strategy and the marketing of their home.
In September, there were 43 condo apartments sold in Barrie that were selling in an average of 33 days with an average sale price of $422,386 (median $397,000), which was a 5.6 per cent decrease since August.
In the condo townhouse sector of the market, there were 16 units that sold last month in an average of 34 days. The average sale price was $367, 494 (median $365,950), which was a 2.6 per cent decrease from the previous month.
The real-estate market is heading into a slower time of year, so expect condo sales in Barrie to slow. This does not mean that we will see prices drop, it could simply mean that we will see fewer listings hit the market, less multiple bids and average days on market could increase. This could cause the condo market to potentially come closer to equilibrium or balanced market.
There are currently 65 condominium units for sale in Barrie, including 47 condo apartments and 18 condo townhouses.
2020 At A Glance
The first quarter of 2020 was off to a good start. There was a good amount of inventory for sale, buyer demand was up and properties were selling for near list price.
First-Quarter Statistics:
Total Number of Condo Units Sold – 117
Average Sale Price – $382,849
Median Sale Price – $367,000
Average Days on Market – 54
Units were selling for 99 per cent of their list price
When the economy moved into lockdown in the second quarter, both sellers and buyers caused a market ‘pause’. Not only were people concerned about leaving their homes or having people view theirs, but there was so much market and job uncertainty. Most were just sitting tight to see what was to come.
Second-Quarter Statistics:
Total Number of Condo Units sold – 83
Average Sale Price – $380,485
Median Sale Price – $350,000
Average Days on Market – 46
Units were selling for 98 per cent of their list price
There was not much of a change in the average or median sale prices from Q1 and Q2 as both supply and demand decreased simultaneously. That said, why were properties selling faster? Well, virtual showings and open houses played a large role in helping people buy and sell real estate in April and May while the economy was still in lockdown. Many were able to view properties in the comfort of their own home and some even made decisions without booking a physical appointment.
Third-Quarter Statistics:
Total Number of Condo Units sold – 175
Average Sale Price – $413,905
Median Sale Price – $387,900
Average Days on Market – 34
Units were selling for 99 per cent of their list price
Once the economy started to reopen, the condominium market in Barrie exploded. The pent-up demand during the second quarter, along with the historical low interest rates, created the perfect storm. Prices jumped as properties were selling with multiple bids in record time; the supply of inventory just could not keep up with consumer demand, leaving many buyers frustrated and disappointed as they lost out of their perfect home.
It will be interesting to see what happens in the final quarter of 2020. How will a second wave affect the Barrie condo market? Will the market slow down like it did in April or do we have the systems in place to keep the real estate market rolling? Will we see the regular holiday season/winter slow down?
I guess we will find out soon enough.
