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Barrie Real Estate Market Dips Back to Earth in Late 2018

Barrie Real Estate Market Dips Back to Earth in Late 2018
3 min. read

At the end of 2017, the Barrie real estate market benefited greatly from a surge in interest from buyers looking to lock in mortgages before new lending rules came into effect. Barrie had already been enjoying a prolonged period of market strength, with November sales figures in 2015-2017 sitting above the ten-year average. This year, however, numbers dipped back below that margin.

Image: LesPalenik/Shutterstock.com

Overall, there were 309 homes sold in Barrie and the surrounding area during the month of November 2018. This was a drop-off of 18.3% on a year-over-year basis. This marked the lowest November sales figure in five years. This pattern is not constrained to a single month, but is part of a larger decline that has been ongoing throughout 2018. From the start of the year through to the end of November, 4,069 homes were sold in Barrie. This was a 15.5% drop-off from last year.

Listings Also on the Decline

544 homes were listed for sale this November. This was a decline of 10.4% compared to November 2018, and was part of the larger pattern of the overall market conditions quieting down in Barrie and the surrounding area.

Even though new listings were on the decline, overall listings in the area are actually growing. The reason for this is that sales activity has slowed so much that listings are starting to accumulate. At the end of the month, there were 1,215 homes for sale in the city. This was the highest that number has been in seven years, and was a year-over-year increase of 12.4%.

Prices Drop Slightly Compared to Last Year

In Barrie and the surrounding area, the average price of a home declined compared to 2017. This November, the average sale price was $477,039. This was 1.3% lower than last year. Throughout the year, prices were declining by a slightly higher margin within the city of Barrie proper. Here, the average for the first eleven months of the year was $478,105. This was a 3.8% decline compared to the average over the same period of the previous year.

Overall, the real estate market in Barrie is certainly in cool-down mode at present. However, current trends do need to be taken with a grain of salt. There was a great deal of activity that was caused by regulatory changes and rising interest rates that artificially inflated activity in many markets, including Barrie, which makes comparing trends on a year-over-year basis somewhat problematic. It is also important to note that none of the swings have been very drastic, which bodes well for a relatively stable market in Barrie as we move into 2019.

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