Barrie Real Estate Market Continue to See Monumental Gains

As the first half of 2021 closes out, the Barrie real estate market is still sitting comfortably in a strong seller’s market; one it has been no stranger to for the better part of the last 18 months. As anticipated at the end of 2020, the Barrie market has seen month-over-month gains as the year has progressed. Mostly led by low supply and high demand, property prices and sales have both skyrocketed throughout this dynamic city.

More Record-Breaking Activity in the Barrie Housing Market

The month of April has seen unprecedented raises across the board in regards to key real estate market metrics. The MLS System of Barrie & District Association of REALTORS® reported 737 homes sold in April 2021; a drastic 281.9% increase compared to April 2020 and a new sales record for the month. In addition to the record, home sales were also 58% above the five-year average and 44.1% above the 10-year average for the month of April.

Drilling down to the city level, the city of Barrie saw a sharp decrease in homes sold compared to March 2021. In April, 369 homes were sold in the city compared to 500 just one month prior – a decline of 26.1%. On the contrary, while the month-to-month sales declined, sales for the month of April shot up 275.5% compared to 12 months ago. This decline in month-to-month sales volume did not hamper the year-to-date figures. From January to the end of April, YTD sales in the county reached a record 2,500 units – a substantial gain of 91.3% compared to the same period in 2020.

This consistency over the first four months of the year demonstrates the ability of the real estate market to pivot with the times. A year ago, the industry wasn’t quite sure what the COVID-19 pandemic would have in store, but now it is forging ahead with gusto. “What a difference one year makes! At this time last year, we were struggling to adapt to a shift in how our industry does business due to the arrival of COVID-19 in Ontario,” said Chantal Godard, President of the Barrie & District Association of REALTORS®.

“Fast forward to April 2021 and we are experiencing a spring market like no other in our region’s history. MLS® home sales shattered the previous April record by a wide margin and posted the second highest monthly total ever, eclipsed only by the all-time record set just the month before. New listings outnumbered sales for the fourth month in a row, helping to backstop overall inventory. Although active listings haven’t been this low in the month of April in more than 25 years, overall inventory appears to have bottomed out and has already doubled from the recent historic low in January 2021. Continued robust demand for MLS® listed homes has once again pushed benchmark prices to a new all-time high, now well past the $700K mark“, says Godard.

Average real estate prices in the city have continued to rise marginally due to the shortage in demand. March 2021 saw the average residential price increase month-over-month by just 0.8%, compared to February, to $714,654. Continuing this upward trajectory, the MLS Home Price Index composite benchmark price for the area was $723,000 in April, which is a 37% gain over April 2020.

Further fuelled by a lack of supply is the benchmark price for various home types across the area. Single-family homes in April recorded a benchmark price of $756,200, a 37.2% gain from twelve months ago. Townhouse/row unit benchmark price was up 41.1% to $536,200 and the benchmark apartment price increased 28.7% to $447,800, when compared to April 2021 levels.

These vast increases in price averages, spearheaded by diminishing inventory, has led to an astonishing $591.1 million value of all home sales just in the month of April – more than doubling the levels from April 2020 and setting a new monthly record in the process.

What to Expect in the Barrie Real Estate Market This Summer

As the summer of 2021 lurks around the corner, it is expected that home prices will continue to marginally increase month-over-month, and sales will continue to outpace new listings in the Barrie Real Estate Market. These factors will support the current seller’s market, meaning if you are looking to sell, now is the time. These strong market trends are projected to continue beyond the hot and sticky months of June, July, and August, potentially sustaining this momentum into the fall season.