This year has been chaotic, to say the least. For the real estate market, chaos has had its benefits. It’s time for our annual Barrie year in review!
2020 has been a great year for real estate in Barrie, despite a slower than usual spring during the first wave of pandemic lockdowns. Spring was followed by an astronomical rise in activity during the summer, resulting in a strong finish to the year.
Luckily for both buyers and sellers, the real estate market saw historically low interest rates throughout 2020. Here in Barrie, we saw a big rise in the sales of housing and condo units, with a 14.7 per cent increase from 2019.
Despite the rise in property prices, people flocked to buy homes in Barrie and the surrounding areas over the summer. Many people living in Toronto and the GTA wanted to settle in areas with smaller populations, and those working from home desired a place of their own. The Insured Mortgage Purchase Program (IMPP) initiated by the government at the onset of the pandemic kept fundings stable for banks and mortgage lenders. This ensured continued lending to Canadians throughout the year, keeping the real estate market moving.
2020’s astronomical summer
July’s real estate activity was as hot as the summer! The incredible boom became a bit of a phenomenon that continued into August and kept everyone in the industry busy. In a story that caught news media attention, a woman reported that her home was sold in just two days on the market. A total of 1,119 homes were sold in Barrie in August – which was actually a three per cent drop from an even more phenomenal July.
The weather cooled, but the market stayed hot
The real estate spike in Barrie didn’t end with the summer. According to the Barrie and District Association of Realtors (BDAR), November saw a 13.2 per cent rise in units sold from last year, with buyers snatching up 464 units in the city. Average real estate sale prices increased 14.5 per cent to an average of $563,299. A drop in supply and continued rise in demand drove prices up in Barrie throughout the fall. Even in a seller’s market, though, buyers were still active.
Who bought what in 2020?
The typical home buyers in Barrie this year were young couples, most of them buying their first entry-level home. These new buyers opted for townhouses ranging in price from $490,000-$550,000. They were often move-over buyers from the GTA, looking to capitalize on the low interest rates and affordable prices in the region. High demand for entry-level homes gave sellers the advantage of a 25.8 per cent price increase. Many sellers also had multiple offers, giving them a range of options to choose from.
What’s in store for 2021?
Canadian realtors are optimistic these hot market trends will continue into 2021. The rollout of COVID-19 vaccines has begun, and people are optimistic that the virus will soon be under control. Still, many people will be looking to relocate. A lingering weariness of densely populated cities, combined with Toronto prices far beyond the means of the average Canadian, will contribute to this exodus. 35 per cent of RE/MAX brokers predict that “move-over buyers” will keep up the historic booms in Barrie and Simcoe County in 2021.
Low interest rates, and an increased interest in home ownership among millennials meant that 2020 was a solid year for Barrie real estate. We can likely look forward to lots of activity in 2021 as well.
From an unreal summer, to a winter that has so far has seen $314.3 million in home sales in Barrie, 2020 has definitely been good to the housing market here!
If you are looking to take advantage of the Barrie boom in 2021 and want help securing the best mortgage rate, give me a call at (705) 333-4338 or get in touch with me here!