It’s time for our Barrie 2023 year in review! It’s hard to believe we’re approaching the end of another year, and this one was full of action. From interest rate decisions to housing market trends, the market in Barrie was one to remember. Here are the key takeaways from 2023 that will help you prepare to move into 2024.
The Barrie 2023 market
Let’s start by reviewing the Barrie market performance for the year. At the time of writing, the average housing price in Barrie is $678,000. This number shows a monthly, quarterly, and yearly decrease. It is an 11.7 per cent monthly drop, 5.5 per cent quarterly drop, and 4.2 per cent yearly drop. All of this information shows that housing prices in the region are on a downward trend.
How do these prices tie in with supply, demand, and purchases? Right now, data is showing 663 new listings have come up in the last 28 days. 128 homes have sold in that same timeframe, and most properties are spending 26 days on the market. The selling to listing price ratio is 98 per cent. Back in January, the 28-day inventory number was 618, with 143 sales. Time spent on the market, as well as selling to listing price ratios, have not experienced major changes. Overall, we have experienced a dip in housing demand and prices, with a small jump in supply.
*All data from Zolo.
Interest rates in 2023
Interest rate decisions from the Bank of Canada have contributed to the drop in housing demand. From early 2022 to mid 2023, the central bank has been engaged in an aggressive rate hike cycle. During that period, the overnight lending rate has jumped from 0.25 per cent to five per cent. We saw the effects of these changes in 2022 as housing demand began to slow down. This trend continued into 2023. After such a long stretch of record-low rates, many people were more reluctant to enter the market during such an intense rate hike cycle.
Thankfully, the Bank of Canada has stated we have likely exited this rate hike cycle. There has not been an increase since July, as inflation is dropping and the economy is slowing. There is a big expectation that the next rate movement from the central bank will be a rate decrease.
Expectations for 2024
So, what should you expect to happen in 2024? While a rate drop seems likely, this probably won’t happen until mid-late 2024. During that time, many economists expect the Canadian economy to enter a recession. In response, the Bank of Canada will probably lower rates to keep the economy moving. The highest mortgage rates of 2024 are expected to be right at the beginning of the year. If you are considering buying a home next year, this is important to consider. Entering the market earlier means working with higher rates, while waiting might mean buying during an economic downturn.
Of course, a lot happened this year, and our Barrie 2023 review can’t cover it all. However, those were some of the main points to take from the year and keep in mind as we approach 2024. If you are a homeowner, someone who is dealing with debt, or are considering entering the market, you should reach out to a mortgage broker to start discussing your next steps. This will help you secure the best start to the new year!
As always, thank you for your support throughout the year. I look forward to working with you in 2024, and hope you have a fantastic holiday season! Stay safe, and don’t hesitate to reach out.
If you have any questions about your mortgage, get in touch with me!