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Mortgage Expert TMG The Mortgage Group

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Barrie housing market is showing signs of overheating.

Real Estate showing

The City of Barrie’s housing market is showing signs of overheating, again!

This could be good news for home sellers who may not be immediately buying another home or those buying in a lower priced location. It may not be favourable for those who are planning to stay within the city or First Time Buyers.

Real Estate Sales activity

In the month of July, home sales activity was 9.1% above the 5 year average and 4.6% above the 10 year average.  This happened even though there was a substantial 30.2% current annual decline in transactions.

There were 4268 units sold over the first 7 months of 2021 creating an increase of 38.3% year over year.

In August the number of units sold was 205, down 36.1% over August 2020.  Suggesting there is still a shortage of supply.

President of the Barrie & District Association of Realtors

“Home sales came in well below where they were last July when the resurgence was in full effect, but looking at the rest of history this was still a very solid month for activity,” said Chantal Godard, president of the Barrie & District Association of Realtors. “New listings dropped by more than sales, so overall supply levels are at record lows and still falling.”

Godard said that if this continues, home buyers in Barrie will experience a more competitive market.

“We expect a moderation from the breakneck pace in sales that we saw in the second half of last year as we move through the rest of 2021, but unless supply picks up again, we’ll continue to see very strong price growth and tight market conditions,” Godard said.

Prices

In July 2021, the price for a single family home was up by 36.6% annually or $767,800 for a single family home, and a townhouse/row house was up by 46.% to $542,400.  An apartment sold at an average of $453,500 and up by 30.8%.

In August 2021, the price of a detached unit was $748,686, up 2.6% year from July 2021.

Barrie is likely not the only city where buying property has become more difficult with multiple offers and sale prices above asking.  The situation may be more intense considering the proximity to the GTA for commuting purposes and for people who now work from home permanently who want more space.  Not to mention better affordability than Toronto.

Its still a case of supply not meeting the demand.

Hopefully, we come in for a safe landing some time in the future.  I don’t expect this is sustainable forever!

For further info please visit https://www.bdar.ca/statistics

 

 

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