Barrie Homes: Barrie Housing Market Remained Balanced in 2011

The Canadian Mortgage and Housing Corporation (CMHC) recently released their first quarter 2012 publication which gives us some insight into the state of the market at the end of 2011 and some shifts in the market which indicate changes to come in 2012 for the Barrie real estate market.

There are three main conclusions that the CMHC has drawn from the close of business in 2011. (1) New home starts shifting from single-detached to higher density dwellings, (2) An increase in existing home sales and (3) Barrie's real estate market continued to remain balanced.

(1) Higher Density Home Starts Increase

New constructions has shifted away from single-detached homes and towards higher density dwellings such as rows or apartments. According to CMHC the ratio of single-detached homes to total starts has been trending down since 2007. This downward trend indicates that Barrie is becoming more urban. It is also due to an increase in demand from both aging baby boomers and cost-conscious younger buyers for more affordable high density homes. This is not the case however in Innisfil and Springwater Township whose markets have only seen a slight decrease in the ratio of single-detached starts to total starts.

(2) Existing Home Sales Increase

The price gap between new home sales and existing home sales continued to widen in 2011. The average price of a new single-detached home in 2011 was $418,000 and the average price of an existing home in 2011 was in the range of $282,000 to $249,000. Because of this price gap some buyers looked to the existing homes in order to save on cost.

(3) Barrie Market Remains Balanced

As a whole in 2011 the Barrie market saw steady sales activity and flat new listings. This pushed the sales to new listings ratio higher but still within that of a balanced market. Homebuyers in 2011 remained cautious and most focused on homes with lower price tags. Mortgage rates remained low and full time jobs continued to increase giving buyers the security they needed to enter the market. Sales increased faster than new listings which indicates that first time buyers also returned to the market.

Please feel free to contact me any time to learn more about the Barrie real estate market and be sure to forward this article on to any friends or family that may be interested as well.

Sincerely,

Peggy Hill