The first quarter of 2022 has been the most dominant seller’s market Barrie has ever seen, says columnist
The 2022 real estate market in Barrie has been quite mixed.
The year began with one of the strongest sellers’ markets in history for Barrie, which then slowed rapidly at the start of the second quarter and continued to slow through the summer months. This slowdown has brought prices back down to where they were in the fall of 2021.
The first quarter of 2022 has been the most dominant seller’s market Barrie has ever seen. Inventories were at an all-time low and buyers were bidding on properties, driving prices up day by day. Many sellers have decided to take advantage and make their investment profitable, rather than waiting for the spring market; which is historically the best time to sell.
A total of 132 condominium units sold in Barrie during the first quarter of 2022. These units took an average of 14 days to sell and recorded an average sale price of $637,038, which led to an increase 35.7% of the average sale price. Year after year.
As Barrie moved through the second and third quarters, buyer demand waned and more properties became available for sale. This caused the average days on market to increase, which then began to put downward pressure on prices.
During the second quarter of this year, a total of 107 condominium units were sold in Barrie. These units took an average of 20 days to sell and had an average selling price of $619,714.
In the third quarter, 76 condominium units were sold in Barrie. These units took an average of 43 days to sell and had an average selling price of $528,949. By the end of Q3-2022, the average selling price had come down to where the market was in fall 2021.
Many different external factors have contributed to this year’s downturn which began in Q2-2022:
– Barrie went from winter to summer overnight.
– This year was the first spring in three years where the economy was not blocked.
– People were able to leave for long weekends and there were no restrictions on large gatherings for the first time in years.
– There was a provincial election. Historically, the real estate market calms down around all elections.
– There has been a huge increase in gas prices causing people to rethink long commutes and a move that would require a long commute.
– The rise in interest rates which had a negative effect on the purchasing power of buyers.
Although there were signs leading to the market slowing down, it was almost impossible to predict exactly when the top of the market was going to be and no one could have predicted how fast the market would go down.
There were many happy sellers who took advantage of the height of the market earlier this year; especially investors who only had property to sell, but some missed the mark. If you were buying and selling in the same market, there wasn’t much gain.
Finally, let’s isolate the numbers for September. Last month, 15 condominium apartments were sold in Barrie and only eight condominium townhouses. The average sale price for a condo was $584,900, and units took an average of 53 days to sell.
The average number of days on the market to sell a condo home last month was 54 and the average selling price was $452,863.
If Barrie followed the latest market trends, the market would most likely continue to slow over the winter.
There are currently 85 condominiums for sale in Barrie, including 71 condominium apartments and 14 condominium townhouses.