Barrie house prices fell in the year ending on Sept. 30, 2024, according to a new report from the Barrie and District Association of Realtors (BDAR).
Average house prices declined about 2.5 per cent, from $754,790 in Sept. 2023 to $737,810 in Sept. 2024. With year-over-year inflation reaching 1.6 per cent during the period, this is equivalent to a 3.93 per cent drop in real terms.
According to Lindsay Percy, chair of the BDAR, the fall should not be taken as a grim portent by Barrie’s homeowners. Rather, she says it is a return to normalcy after years of unusual market conditions.
This turbulent period began during the coronavirus pandemic. As companies introduced hybrid workplaces, people from outside the area began to consider moving to Barrie. “Now we’re seeing slightly less interest [from Torontonians] than we did when people began working remotely.”
“[Recently] the market has been in a state of flux because of higher-than-normal interest rates and people’s expectations for where they will land,” she says, adding that if Barrie’s property market was a game of tug-of-war played between buyers and sellers, “Right now, both teams are just sitting down, taking a breather.”
“Buyer demand is sitting on the sidelines as people anticipate falling rates. Sellers who don’t have to sell. . . are not going to sell for less [than they could have when prices peaked].
In practical terms this means the amount of time properties are listed without sold has increased from 3.98 months in Sept. 2023 to 4.78 months during the same period this year. At the same time, the total number of listings also grew from 657 to 827. “The time on the market has been extended at least partially because there’s a reduced number of buyers who can afford to buy at higher interest rates.”
Percy adds that attendance at house showings is up, especially among people who feel on-the-fence about buying property. She also says the city’s real estate agents expect the pent-up demand to ease as the Bank of Canada steadily lowers interest rates. “We’re expecting demand will remain steady through the fall and for the spring market decent if rates continue to come down.”
Despite the declines in Barrie, the value of home sales in the rest of Simcoe County actually grew. During the period, sales prices rose by 4.36 per cent, from $822,574 in Sept. 2023 to $858,442 in Sept. 2024. Accounting for inflation, this equates to an increase of about 2.7 per cent.
“As you get just out of the city of Barrie proper, there are a lot of higher-priced developments and expensive, waterfront properties,” Percy says.
