The Canadian real estate market has been the driving force to the increase in the country’s inflation rate in 2021 and 2022. While the housing supply was extremely low, demand for both condominiums and freehold houses was up considerably during these years, which created multiple offers on properties and caused prices to increase significantly.
Right before the pandemic, Canada’s inflation rate was 0.72% and the real estate market in Barrie was quite healthy. Properties were affordable and values were increasing marginally at a steady pace.
Once the world pandemic was declared, the demand for real estate outside of the Greater Toronto Area started to increase which put upward pressure on housing prices in Barrie. From the beginning of the pandemic to the peak of the market in March of 2022, the average sale price for a condo apartment increased 38%, and the condo townhouse sector recorded a 44% increase. A few months later, the Canadian inflation rate hit 8.1% which was the highest inflation rate recorded since the early 1980s recession.
There was definitely cause for concern, so the Federal Government started to watch Canada’s inflation rate closely and put a plan in motion to bring the inflation rate down. They did so by influencing consumer spending through adjusting the interest rate. When the inflation rate is high, the Government increases interest rates, which raises the cost of borrowing causing people to think twice about their spending.
Since mid-2022, interest rates have increased 8 times in the attempt to bring inflation down to a 2% target. Although Canada has not yet reached its target, the inflation rate has decreased to 3.8% and interest rates were held in both September and October when a rate change could have been announced. Canada seems to be on its way to a more stable economy, but it is unknown if there will be a further interest rate increase this year or in 2024.
Since the peak of the condo market in Barrie in 2022, the average sale price for a condo apartment has gone down by 14% and the condo townhouse sector has decreased by 18%.
In October there were a total of 14 condo apartments that sold in Barrie, Ontario. The average sale price was $554,107 and it took an average of 38 days to sell. There were only 7 condo townhouses that sold last month with an average sale price of $529,429 and the average days on market was 41.
There are currently a total of 165 condominiums for sale in Barrie; 132 condo apartments, 10 stacked condo townhouses and 23 full condo townhouses.
*All stats are based on listings sold with the Toronto Regional Real Estate Board
Currently For Sale with Barrie Condo Corner:
FOR SALE - Rare bungaloft with master suite, surrounded by nature in central Barrie CLICK HERE
FOR SALE - Fully renovated 2 bedroom, 2 bathroom corner unit in the Marina Bay Condominiums on Barrie's waterfront CLICK HERE
FOR SALE - Warm and inviting two bedroom condo townhouse in Whiskey Creek Gardens Condominiums just off Yonge Street CLICK HERE
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Common elements. CLICK HERE
Costs associated with condo ownership. CLICK HERE
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