Buyers use this strategy to shorten the time for other buyers to view the property in hopes it will lessen their competition when the seller considers offers, says columnist
January was one of the tightest months the Barrie condo market has ever seen. Demand has been incredibly high for Barrie and surrounding areas, and the market has become extremely competitive among buyers.
Most sellers chose to hold offers and review them on a specific date to maximize their return, but many buyers ignored the seller’s request and submitted preemptive bullying offers. — who submits an offer before the review date requested by the seller.
Buyers use this strategy to shorten the time for other buyers to view the property in the hopes that it will reduce their competition when the seller reviews offers. This has resulted in properties selling at new record prices at some condo complexes and within days of going on sale.
In January, a total of 20 condominium apartments were sold in Barrie, with an average sale price of $609,950, down from December, but up 32% from the same period last year . The average days on market was 15 days and the units were selling for 10% more than the original asking price.
Last month, there were only 11 condominium townhouses sold in Barrie. With demand so high and supply extremely low, units were selling for 19% more than the original list price. The average selling price rose 13% from December and topped $600,000 for the first time ever in Barrie. The average sale price recorded in January was $636,855.
The one thing people need to keep in mind when looking at average days on market is that it includes all conditional periods. The sale is technically registered only when all the conditions have been lifted by the buyer or the seller. Although Barrie is in a very tight market, it is not uncommon for a condominium to be sold on the condition that the buyer’s attorney review the certificate of status.
For example, let’s say a property came on the market and was active for sale for four days, at which time the seller accepted a conditional offer from a buyer. The buyer waived their condition six days later and the sale was registered. The days on market will be recorded as 10, even if the property was only available for four days. Unfortunately, the ‘days on the market’ recorded must include the conditional period in case the buyer does not waive their terms, causing the property to be put back on the market.
Barrie’s condo market started 2022 with the lowest condo inventory in history. In January, active condominiums listed on the market at one point fell between 10 and 15 units. There are currently over 20 condominiums for sale in Barrie. Thus, as long as more condominium units continue to be available for sale, bringing the market closer to a state of equilibrium, there should be fewer competing bids on properties, which should help slow the price increase.