The Barrie condo market was fairly quiet in January, but turned into a full-blown sellers' market as we rolled into February. It is unbelievable how fast the real estate market can change.
The average sale price for a condo apartment in January was $461,117 with units selling in an average of 51 days for 101 per cent of their original list price. However, the median days on market was 28, which is a more realistic figure that reflects the true performance of the market last month.
Averages can be funny. One simple high or low sale could skew the numbers causing the recorded number to be distorted. That is why it is good to also look at the median price or median days on market as their values are likely to be closer to the reality of the market.
The average sale price for a condo townhouse in January was $442,517 with properties selling in an average of 70 days, but the median days on market was 19. Condo townhouses have been a hot commodity and with listings for this property type being low, units were selling for 109 per cent of their original list price.
When analyzing the average days on market in the condominium sector, it is a good idea to take into consideration the conditional period as it can be quite lengthy.
Suppose a buyer put an offer on a condo with only a condition on the review of the status certificate. How would the status condition affect the average days on market?
The Condominium Act of Ontario states that the property manager legally has 10 days to deliver the status certificate, after the request and payment has gone through. Upon delivery of the documents, the buyer’s solicitor usually has three days to review, after which the buyer has the option to waive their condition.
During the conditional period, the seller’s hands are tied. If another interested buyer put in an offer, the seller could not accept it until the original offer fell through. That said, with the 10-day delivery period combined with the three-day review period, the condo unit would not be available for almost two weeks. This could cause the average days on market for a condo look longer than it actually took to sell.
That said, most property management companies have moved away from paper and adopted electronic methods of doing business. These include online payments of the status certificate, sending the file to the seller electronically, and offering rapid processing and delivery service for an extra charge. This has helped cut many conditional periods in half.
So, if you are a buyer looking to purchase a condominium, it would be a good idea to take the conditional period into consideration when looking at the recorded average days on market. If the average days on market in a given month was 21 days, it would be safe to assume that the property probably sold conditional a week or so prior.
Now! Jump to the first two weeks of February. Condo apartments have been selling in an average of 19 days; median is seven, and for 105 per cent of their asking price. Properties are selling faster as there is not much currently listed and demand is through the roof.
Condo townhouses have tightened even further with units selling for 113 per cent of their list price in an average of six days; median is five. There is no question that the condominium market in Barrie is getting more competitive. Inventory is at an all-time low with buyer demand increasing as buyers continue to get out bid of the freehold housing market. Not only are units now selling for well over their asking price but the average days on market have decreased considerably with many buyers dropping their condition on the review of the status certificate to strengthen their offer.
There are currently 35 condominiums for sale in Barrie; 17 condo apartments and 18 condo townhouses.
* All stats are based on listings sold with the Barrie & District Association of Realtors