So where are the Barrie real estate deals in wake of the recession?

As we reached a point early in 2008 where Canadian news media began to report that we too were now seeing the symptoms of recession in our own economy, Realtors began to wonder how bad it might get and just what the business of Real Estate was about to endure.

My expectations were that in the event of a full blown recession we were going to begin seeing homes listing far faster than they could sell and the result of that increased inventory would drive down the price of homes in general.

Well we never really saw that happen here in Ontario. Instead what we saw was many would be buyers and sellers adapting a wait and see position. Buyer activity slowed towards the end of 08 and was late to pick up again in 09. By June of 09 sold signs were appearing with more frequency on dated listings all around the Barrie area and buyers were now taking advantage of the record low interest rates on mortgage money being offered.

In many ways our recession here in Canada felt like the winter pre storm warnings we are used to getting every year that threaten to see us buried under a paralyzing layer of heavy snow but instead give us a light dusting.

That isn't to say we got off scott free. The majority of sales activity now and for all of this year has been homes selling under $300,000. In the past 30 days there have been 284 residential sales registered with the Barrie Association of Realtors, only twenty percent or 59 of those sales were of homes over $300,000. There are as of the time of this post, currently 833 active detached listings which are at or above the $300,000 mark and 632 listed in the more active range below $300,000.

We still have an active first time buyer market that is responsible for much of the activity in the lower price range. Homes above $300.000 generally sell to those who have built up equity from a previous home purchase to work with. With the scent of recession still lingering, far fewer are trading up, though this is one of the better times financially to make such a move.

So where are the bargains? Well it isn't in the first time buyer range, these homes are still selling within reasonable time frames at healthy list to sell price ratios. Townhouses continue to increase in value as are condo's and detached homes in this range. The bargains are to be found in the higher priced homes.

If you have out grown your starter home but are waiting on the final seal of approval from the media that the economy has fully recovered you have to ask yourself why. If job uncertainty is an issue for you then holding tight on that move up to a more expensive home is understandable.

Otherwise you are likely in a home that has continued to appreciate in value on through the past year, mean while the higher priced homes you have your sights on are taking far longer to sell which in many cases is going to puts you in the drivers seat at the negotiating table. Many sellers in this range are anxious just to make a deal. A sacrifice on price is going to appear more attractive to many than chancing another six months on the market before the next offer comes, more so if that home is and will be sitting vacant until it sells.

If you want to know were to look for the hidden bargains the $300k plus market is where you are most likely to find them..

In addition, and even of greater financial significance to you is the fact that interest rates are still at all time lows right now. A rise of just one percentage point on a $300k mortgage means a difference of about $200 each and every month which works out to over $12,000 for just the first five year term on a 25 year mortgage! Again that's just a one percent difference.

Much like the stock market most wait until the frenzy to decide to buy when prices are on the climb once again and interest rates are no doubt adjusting back to their higher levels. Today's posted variable rates are sitting just over 3%. The average rates over the past 25 years in Canada have been between 6 and 7 percent.

My prediction is Barrie's inventory of higher end homes will see healthy value increases over time for the following reasons.

• Barrie has very little undeveloped residential property left within its boundaries
• There is demand from the public and preassure by the province for Barrie to build higher density, lower cost housing on its remaining undeveloped residential lands. https://www.placestogrow.ca/index.php
  
• Central Ontario's economy will continue to grow creating increased demand for quality housing in Barrie.

Do the math. Then decide what its worth to you to make your move.

To keep yourself up to the minute on home lisings in your price range of choice visit HotBarrieListings.com