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The average sale price in the Simcoe County housing market increased by 5.1 per cent between 2022 and 2023 (from $927,780 in 2022 to $974,831 in 2023), while the number of sales decreased by 12.5 per cent (from 2,067 from 2022 to 1,809 in 2023). The current housing market in Simcoe County is a seller’s market, which is anticipated to shift to a balanced market heading into 2024 due to softer sales with an increase in inventory – with average residential sale price predicted to increase by seven per cent, and unit sales to increase by 10 per cent in the year ahead, as a result of pent up demand from buyers moving to the sidelines waiting for interest rates to stabilize.
It is expected that the top three sought-after neighbourhoods in 2024 in Simcoe County will be Leticia Heights, Allendale and Innisfil. Liveability trends pinpoint that greenspace, and large lots are fueling demand and sales activity for single detached homes, in addition to shared mortgages because of the need for entry-level buyers to offset increased carrying costs on their mortgages, which will continue to be the case heading into 2024. The dominant factors impacting local housing market conditions in Simcoe County are interest rates and low inventory. Both are causing more individuals to explore the rental market, therefore, widening the gap between buyers and sellers, as realtors are forced to manage expectations and revise pricing.
“High interest rates continue to dictate market activity across Canada including in Simcoe County. We’re seeing first-time home buyers be priced out of the market as a result, especially if they’re looking to purchase homes without any financial support,” says David Brown, Manager and Sales Representative, RE/MAX Hallmark Chay Realty. “Not to mention demand is currently high due to low inventory levels – which won’t be rectified any time soon as developers are pausing projects due to economy uncertainty.”
Top Trends:
- Simcoe County will shift from a buyer’s market into a balanced market in 2024.
- Single-detached homes are likely to see the greatest demand in this region.
- First-time homebuyers are being priced out of market unless there’s supplementary financial support from parents.
- First-time homebuyers are also exploring taking in tenants to ensure mortgage payments are fulfilled, as high interest rates continue to control market activity.
- In the luxury segment, high net-worth individuals and families are purchasing properties upwards of $2,500,000. Developers in Midhurst, Innisfil, and Alliston are pulling back on projects due to economic uncertainty.
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About the RE/MAX Network
As one of the leading global real estate franchisors, RE/MAX, LLC is a subsidiary of RE/MAX Holdings (NYSE: RMAX) with more than 140,000 agents in almost 9,000 offices with a presence in more than 110 countries and territories. RE/MAX Canada refers to RE/MAX of Western Canada (1998), LLC and RE/MAX Ontario-Atlantic Canada, Inc., and RE/MAX Promotions, Inc., each of which are affiliates of RE/MAX, LLC. Nobody in the world sells more real estate than RE/MAX, as measured by residential transaction sides.
RE/MAX was founded in 1973 by Dave and Gail Liniger, with an innovative, entrepreneurial culture affording its agents and franchisees the flexibility to operate their businesses with great independence. RE/MAX agents have lived, worked and served in their local communities for decades, raising millions of dollars every year for Children’s Miracle Network Hospitals® and other charities. To learn more about RE/MAX, to search home listings or find an agent in your community, please visit remax.ca. For the latest news from RE/MAX Canada, please visit blog.remax.ca.
Forward looking statements
This report includes “forward-looking statements” within the meaning of the “safe harbour” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “believe,” “intend,” “expect,” “estimate,” “plan,” “outlook,” “project,” and other similar words and expressions that predict or indicate future events or trends that are not statements of historical matters. These forward-looking statements include statements regarding housing market conditions and the Company’s results of operations, performance and growth. Forward-looking statements should not be read as guarantees of future performance or results. Forward-looking statements are based on information available at the time those statements are made and/or management’s good faith belief as of that time with respect to future events and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. These risks and uncertainties include (1) the global COVID-19 pandemic, which has impacted the Company and continues to pose significant and widespread risks to the Company’s business, the Company’s ability to successfully close the anticipated reacquisition and to integrate the reacquired regions into its business, (3) changes in the real estate market or interest rates and availability of financing, (4) changes in business and economic activity in general, (5) the Company’s ability to attract and retain quality franchisees, (6) the Company’s franchisees’ ability to recruit and retain real estate agents and mortgage loan originators, (7) changes in laws and regulations, (8) the Company’s ability to enhance, market, and protect the RE/MAX and Motto Mortgage brands, (9) the Company’s ability to implement its technology initiatives, and (10) fluctuations in foreign currency exchange rates, and those risks and uncertainties described in the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission (“SEC”) and similar disclosures in subsequent periodic and current reports filed with the SEC, which are available on the investor relations page of the Company’s website at www.remax.com and on the SEC website at www.sec.gov. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made. Except as required by law, the Company does not intend, and undertakes no duty, to update this information to reflect future events or circumstances.
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Barrie Housing Market Outlook 2021
- Are house prices in Barrie rising or falling?
- What factors are driving demand in Barrie’s housing market?
- How fast are new houses being built in Barrie?
- Statistical findings from the 2021 Housing Market Outlook Report
Seller’s market expected for Barrie in 2021, prices expected to rise 4%
The Barrie housing market is in store for another seller’s market in 2021, thanks to continuing challenges in housing supply, growing demand and rising prices. Low inventory has been a common trend across many Ontario housing markets, putting upward pressure on prices.
Average House Prices in Barrie
Indeed, single-detached homes in Barrie saw prices rise to an average $596,960 in 2020 (Jan. 1-Oct. 31) compared to $539,890 in 2019 (Jan. 1-Dec. 31). During the same period, the average price of condominium properties in the region increased to $399,408. Low supply and rising prices are expected to be a continuing factor in 2021 market activity. Thus, the RE/MAX outlook for Barrie real estate is an increase of 4% in average price to $569,525 across all property types, with sales also expected to see an increase of 5% over 2020 levels.
Housing inventory is very tight in Barrie, currently sitting at one to two months. This shortage that prompted a seller’s market in 2020 is likely to continue in 2021. While more housing supply is expected to come on stream, demand will far outweigh any boost in inventory. Days on market should remain on par with 2020 levels.
Who’s driving demand for Barrie real estate?
Demand from homebuyers leaving the Greater Toronto Area is expected to remain very high in 2021, putting pressure on housing supply and prompting continued price growth in the region. Move-over buyers have been a longer-term trend in the Barrie area, however COVID-19 has intensified this activity in 2020, with many buyers seeking more space further away from densely populated urban areas. With Barrie being only 45 minutes north of the GTA and offering homes at half the price, Barrie continues to be a hot move-over market.
Buyers from the pricey GTA continue to flock to Barrie, which is only 45 minutes north of the GTA and offers homes at half the price.
First-time homebuyers are typically young couples, seeking townhomes in the $490,000-$550,000 price range. Low interest rates will keep them in the game along with regional affordability, unless prices rise more than 10 per cent. Multiple offers have been a common occurrence in 2020, which has been a lesson for many first-timers who have had to adjust their offer strategy due to competing offers. This has also been the case for move-up homebuyers in the area, typically families who have faced the same challenges around multiple offers and a shortage of listings. These conditions are expected to continue in 2021 as well.
Barrie’s condo market is experiencing similar conditions to its low-rise counterpart, characterized by tight inventory, high demand and rising prices. Condo sales caught up to 2019 levels by the end of October 2020, with continued pressure expected in 2021. Agents with condo listings initially had to rebuild their showing protocols to ensure COVID safety, due to condominiums’ contained environments, however agents and clients alike have made all adjustments necessary to be safe and have been transacting without issue.
Luxury real estate in Barrie is being predominantly driven by move-up and recreational home buyers, with an average starting of $800,000. Demand for high-end homes has increased in the Barrie market, which is expected to be a longer-term trend.
Barrie new-home construction
Although many new starts are planned and developed land has started to come on line new-home builds in Barrie have slowed for a number of reasons. Municipal approvals and subdivision plans/permits have experienced delays, due to the COVID-19 shut-down and low staffing levels. Furthermore, building supplies are scarce and more expensive. Finally, builders were challenged in finding trades due to CERB availability or lack of childcare. However, small renovations and non-custom home improvements have been absolutely booming, along with cottage improvements and winterizations. However, this sector is also impacted by limited choice of materials available, and pools, boats, RV’s all being sold out.
Canadian Housing Market in 2021
Canadians are on the move. RE/MAX isn’t calling this an “exodus,” but the re-location trend across the Canadian housing market is real, and it’s just one focus of the RE/MAX 2021 Housing Market Outlook Report. RE/MAX Canada anticipates healthy housing price growth at the national level, with move-up and move-over buyers continuing to drive activity in many regions across the Canadian housing market. An ongoing and widespread housing supply shortage is likely to continue, presenting challenges for homebuyers and putting upward pressure on prices.
Due to these factors, the 2021 RE/MAX 2021 outlook for average residential prices is an estimate of +4% to +6% nation-wide. Here’s the regional break-down:
Additional report findings include:
- 35% of RE/MAX brokers indicate that “move-over” buyers from other cities and provinces will continue to spark market activity in 2021
- 45% of RE/MAX brokers indicate that move-up buyers will likely be a primary driver of the housing market demand in 2021
- Half of Canadians (53%) are confident that Canada’s housing markets will remain steady in 2021
- 52% of Canadians believe real estate will remain one of the best investment options in 2021
“We’ve seen a lot of anecdotal evidence since the summer that households are considering significant lifestyle changes by relocating to less-dense cities and neighbourhoods,” says Christopher Alexander, Executive Vice President and Regional Director, RE/MAX of Ontario-Atlantic Canada. “This has sparked unprecedented sales this year in suburban and rural parts of Canada and we expect this trend to continue in 2021.”
Balanced market expected in 2020, prices to rise 5%
The RE/MAX Barrie Housing Market Outlook for 2020 is calling for balanced market conditions, which characterized market activity in 2019 as well. The average residential sale price expectation for Barrie in 2020 is an increase of five per cent, due to similar market conditions and demand levels experienced in 2019.
Housing affordability continues to be the region’s main draw, attracting homebuyers from pricier parts of the Greater Toronto Area. New development projects in land annexed south of Barrie and upcoming condominium projects are expected to have an impact on the housing market ahead. An automotive innovation industrial employment project has also been approved in Oro, which will lead to job creation and a boost is market activity.
Additional factors that are expected to have an impact in the local housing market include potential changes in interest rates, additional GO Train service for commuters, demand and inventory levels.
Move-up buyers and first-time buyers are expected to drive demand in 2020, which has historically been the case for Barrie’s housing market. Popular neighbourhoods to watch in 2020 include southwest Barrie (Holly and Ardagh), City Centre and the Hanmer Street area.
From a national perspective, RE/MAX anticipates a leveling out of the highs and lows that characterized the Canadian housing market in 2019, particularly in Vancouver and Toronto, as we move into 2020. Healthy price increases are expected, with an estimated 3.7-per-cent increase in the average national residential sales price, according to the RE/MAX 2020 Housing Market Outlook Report.
Most individual markets surveyed across Canada experienced moderate price increases year-over-year from 2018 to 2019. However, some regions in Ontario continue to experience higher-than-normal gains, including London (+10.7 per cent), Windsor (+11 per cent), Ottawa (+11.7 per cent) and Niagara (+12.9 per cent).
“Southern Ontario is witnessing some incredibly strong price appreciation, with many regions seeing double-digit gains,” says Christopher Alexander, Executive Vice President and Regional Director, RE/MAX of Ontario-Atlantic Canada. “Thanks to the region’s resilient economy, staggering population growth and relentless development, the 2020 market looks very optimistic.”
The post Simcoe County Housing Market Outlook (2024) appeared first on RE/MAX Canada.
