Like much of Ontario and Canada, Barrie has seen another busy year for real estate. As the housing market stayed hot through much of 2021 and low interest rates persisted, it was hard for buyers, sellers, and mortgage professionals to catch their breath. Waves of high demand, low inventory, and rising prices certainly put the pressure on this city’s real estate market. Just how hot was the Barrie market this year? Here we have a complete Barrie 2021 market review, where we break down everything from sales to supply and demand, and what’s to come in 2022.
Sales
Barrie had a busy year for home sales in 2021. Between detached houses, townhomes, and condos, an estimated 3,600+ homes sold this year. Given the time of writing (early December), Barrie is still likely to see more closings before we round off the year. Detached homes had by far the highest sales volume in 2021, which is likely due to a combination of supply and buyer desires. There were more people selling detached homes than any other, and people are seeking houses with more space now that many of us are permanently working from home. Housing size and securing the right property has become extra important for buyers in 2021.
The “no conditions” trend
Barrie 2021 experienced the “no conditions” trend just like many other cities. It has been a popular trend to buy homes with no conditions attached from the buyer. This means the buyers often don’t require a home inspection, or have any other requirements before closing. This tactic was meant to help buyers look more appealing to sellers, and give them an easier time selling their home. In a market this intense, buyers were looking for any way to stand out. Unfortunately, this strategy can have disastrous consequences for many buyers. Buying without an inspection might attract sellers looking to make a fast move, but it can leave you with a host of housing problems, such as foundation, plumbing and electrical issues. Waiving an inspection might cost thousands of dollars down the road if you have to take on major repairs that an inspection would have uncovered. We don’t recommend skipping a home inspection, no matter what the reason may be.
Housing prices
Housing prices have been rising all year, across all housing types. This trend isn’t specific to Barrie, but Barrie has seen some major growth. If we look at a three bedroom detached house, one year ago it had an average price of $643,000. As of November 2021, that price had risen to $992,000. We find the same kind of dramatic increases in townhouses and condos as well. A three bedroom townhome had an average price of $512,000 one year ago, and now stands at $721,000. A two bedroom condo used to hover around $423,000 and now sells for $595,000. On average, homes have a 110 per cent selling to listing price ratio. This means homes are selling for 110 per cent of the listing price. In short, it was nearly impossible to buy a home below asking price in Barrie 2021.
Supply and demand
In the past 28 days, there have been 418 new listings in Barrie, and 175 home sales. The average home spends just 11 days on the market across all property types and prices. This timeline represents a drop for all prices and property types from November 2020 to November 2021. For example, a home in the $500,000 – $750,000 range had an average time of 15 days on the market last November. Now that number is nine days. Sales and inventory have been bouncing around over the year, but even when there’s more supply, demand is still high and prices are still increasing. Demand to live in Barrie is up due to its proximity to Toronto and its relative affordability, but now affordable prices are becoming harder to find as a result. Barrie’s condo market has had lots of attention this year as well. During the first half of 2021, condos were huge sellers in Barrie. Even now, condo inventory in Barrie is at an all-time low according to Barrie Today, and most are selling over asking price with few conditions.
The future for Barrie
Barrie is likely to experience rising housing prices in the future. Homeowners will enjoy an appreciation of their homes, while new buyers might find it hard to enter the market. If interest rates increase in 2022, this might take some pressure off demand in the market, but it won’t slow down price increases altogether. If you’re looking to buy in Barrie, your best bet is to get in contact with a broker to discuss your budget and options.
As we say goodbye to 2021, I hope you find time to relax and enjoy the upcoming holiday season! It’s been another challenging year, but I look forward to entering 2022 and seeing where it takes us. I am excited to hear from you, and work with you in the new year!
Feel free to reach out to me if you have any questions about your mortgage, or buying a home in 2022. Happy Holidays!
*All data from Zolo.