Barrie homes prices, sales up

By Laurie Watt Simcoe.com May 16, 2012 

BARRIE – Home sales in Barrie are outpacing the blooming of spring flowers, says the president of the Barrie and District Association of Realtors.

“The statistics for April are phenomenal. (Year-to-date) Sales are up 16 per cent over last year, which is quite amazing. The whole first quarter has been very exciting,” said Walter Doret.

In April, 310 homes were sold, which is 29 per cent over the city’s levels for April 2011, and with relatively low inventory, prices are up, too, he added. 

“The average price in Barrie is $289,000. It has increased seven per cent over last year, which is quite significant.”

The Barrie area is benefiting from a perfect storm – of continued migration from the GTA, slow-to-market sellers and fear low mortgage rates may rise.

“I don’t want to say it’s a sellers’ market, but it certainly seems to favour the seller if the home is priced right. That’s the key. You will see very short turnaround periods and see the sold sign go up,” Doret said.

According to the Canada Mortgage and Housing Corporation (CMHC), seasonally adjusted resales have been increasing since the summer of 2010. 

“The first quarter of 2012 reports the fastest sales growth quarter over quarter since the fourth quarter of 2010. Homebuyers continue to take advantage of the low mortgage rates and employment opportunities and buy existing homes. Spill-over demand from Toronto also likely contributed to Barrie sales,” CMHC’s Housing Now Barrie CMA Second Quarter 2012 report said.

“Many residents moving form the GTA are moving to Barrie with substantial equity. They are second and sometimes third-time buyers. These residents are moving to Barrie and using their equity to purchase their dream homes,” the CMHC report said. 

The CMHC also noted that rising prices do not appear to be limiting demand, and in some cases, people are buying pricier homes, which is pushing up average price.

The average price in the census metropolitan area (CMA) – which includes Innisfil and Springwater – is also up, as larger homes outside Barrie are selling.

“The homes in Innisfil are larger than those in the City of Barrie, but also have the highest price per square foot in the CMA. The price per square foot is not affected only by size, but likely the quality of materials used as well.