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Barrie is the New Investment Hotspot in Ontario Real Estate – RE/MAX News

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For years, the Ontario real estate market had been dominated by a few key regions: Toronto, Ottawa and Hamilton. The rest of the province has generally garnered less attention compared to these booming housing markets. Yet, the coronavirus public health crisis changed everything, and now it is the suburbs and rural communities that are experiencing exponential growth and attracting people from these major urban centres.

Barrie has turned into one of the most sought-after real estate markets in the province, appealing to families who want to plant new roots, and real estate investors who want to profit on the investment buzz emanating from Central Ontario. Many industry observers had foreshadowed for years that Barrie was going to experience skyrocketing activity. Still, it was not until the COVID-19 pandemic and a change in real estate consumer behaviours that led to the city’s incredible success this year.

What was once a buyer’s market has quickly transitioned into a seller’s market, thanks to “strong growth” in sales activity and home valuations. But what does the latest data show? The growing real estate market in Barrie is not slowing down.

Barrie is the New Investment Hotspot in Ontario Real Estate

According to the Barrie & District Association of REALTORS® Inc. (BDAR), residential retail sales advanced 51.5 per cent in December from the same time a year ago, totalling 344 units in just one month. On an annual basis, home sales totalled 5,718 units in 2020, rising 23.6 per cent year-over-year.

According to BDAR, composite benchmark price rose 23.3 per cent to $613,200 in December 2020 compared to December 2019. All types of properties witnessed incredible growth at an annualized rate:

  • Single-family: $644,000 | +24 per cent
  • Townhouse: $440,600 | +28.8 per cent
  • Apartments: $372,800 | +11.3 per cent

Overall, the average price of homes that exchanged hands in December soared 34.7 per cent year-over-year, to $744,835.

And these figures are anticipated to grow due to a lack of new supply coming to market, says Robin Jones, President of the Barrie & District Association of REALTORS®.

“Even with the recent influx of new listings overall inventories continue dropping to new record lows. With demand far outpacing supply we’re likely to continue seeing double-digit price growth through early 2021.”

Indeed, BDAR figures show that there were only 276 new residential listings in December 2020, which is up 39.4 per cent from the same time a year ago. Meanwhile, active residential listings plummeted 65.6 per cent from December 2019 to December 2020. Moreover, months of inventory fell to 0.6 at the end of December, down from 2.8 months at the same time last year. This is an important metric because it shows the number of months it would take to sell today’s stocks at the current rate of activity.

Real Estate Investors or Family Homebuyers?

The question that is now being entertained in the broader housing industry is whether Barrie is attracting real estate investors or family homebuyers.

While Barrie has become one of the go-to places for households looking to exit the big cities for quieter lifestyles in rural communities, Barrie also has various factors working in its favour to suggest this could be an investor’s dream. Here are some of the factors currently at play in the Barrie real estate market:

  • Rental rates have been climbing due to a shortage of rental units. The city has attempted to rectify the situation by allowing homes to be converted into duplexes, raising the possibility of greater income generated from one house.
  • Are bidding wars prevalent throughout Barrie? It is inevitable due to a short inventory list, and this is bullish for investors because it results in fast turnover.
  • The Bank of Canada (BoC) has made borrowing cheaper and investing more rewarding. At the onset of the coronavirus pandemic, the central bank slashed interest rates. The result has been more borrowing and a transition away from safe-haven assets, such as guaranteed-investment certificates (GICs) and bonds. With rates expected to remain low (at least for now), it can be more affordable to borrow from mortgage lenders, giving you greater options in the housing market.

A Look at Barrie’s Real Estate Market in 2021

Can Barrie maintain this momentum heading into 2021? According to RE/MAX’s Housing Market Outlook (2021) report, Barrie real estate is expected to jump four per cent to an average price of $569,525 across all property types. Tightening housing inventories and strengthening demand are the city’s two primary factors driving its real estate boom in 2020, 2021 – and beyond.

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Early signs point to a slight cooling of Grey-Bruce real estate market – Owen Sound Sun Times

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The head of the local real estate board says the Grey-Bruce market is showing signs of leveling off from the frenzied buying that had been taking place over the past couple of years.

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Steve Dickie, president of the Realtors Association of Grey Bruce Owen Sound, said Tuesday that local agents are starting to again see conditions put on sales, some price reductions on listed properties and even a decrease in the number of offers on homes.

“The conversation around offices is that it is not as frenzied as it was last year,” Dickie said. “There are still lots of situations where you have multiple offers, but if you are watching the board on a daily basis every once in a while you will see a price reduction, which we haven’t seen in a long time.”

And Dickie said they are again seeing conditions attached to sales, even the condition on the sale of a buyer’s property, something that was non-existent in 2021.

“There are still lots of offers that are straight cash offers, but we are starting to see some conditions in there,” Dickie said.

“We are even seeing the odd home inspection. That has been one of the side effects of this whole thing is that there have been a lot of home inspectors that have gone out of business because they just had no work.”

Dickie said it is hard to say what has caused the slight cooling of the market, but rising interest rates could be a factor. Last month the Bank of Canada raised rates half a per cent, and indicated future rate hikes could be possible to try to help tame surging inflation. An easing of pandemic fear and even the War in Ukraine could be having an impact on the housing market locally, Dickie said.

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“Any time there is a world event going on it makes people somewhat uncomfortable,” said Dickie. “It makes people a little less comfortable with the stability of things and you kind of see a bit of slowdown or a cooling I guess and then people say, I guess it is OK, the world is not coming to an end, and off they go and continue down the path.”

The number of homes sold through the MLS System in Grey-Bruce totaled 283 units in April, which was down more than 25 per cent from April 2021.

Over the first four months of 2022, home sales have totaled 937 units, which is a decrease of 13 per cent from the same period of 2021.

Dickie said it will take a bit of time to see if the slight cooling of the market is a trend.

“There is not enough to make a call yet, but if we see a few more months of this we can be more sure in our predictions,” he said.

Meanwhile, home prices have remained elevated in Grey-Bruce, with the average price of the homes sold in April coming in at just under $744,500, which is up 19.4 per cent from April 2021.

The average price of homes sold in Grey-Bruce in March was $759,427, while year-to-date in 2022 the average sale price has been just under $755,000, an increase of 22 per cent from the first four months of 2021.

“Prices are still high for sure,” said Dickie. “Normally in these situations when we start to see a slowdown we will see it in the very expensive properties first. We are just going to be monitoring that as the next couple of months go on.”

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Dickie said larger centres like Toronto experience much more dramatic moves in the housing market than an area like Grey-Bruce.

In Toronto, the average price of homes declined 6.4 per cent in April from the month before on a seasonally adjusted basis. It was the biggest monthly drop in that market in two years. Toronto home sale totals also declined 26 per cent from the month before.

Typically in Grey-Bruce, Dickie said they see prices level off for a while before they start to go up again.

“I am trying to tell people locally to stay calm,” Dickie said. “Nothing is going to crash.”

RAGBOS, which represents approximately 450 realtors, also provides MLS Home Price Index benchmark prices, which it says tracks prices far more accurately than is possible using average or median price measures. The benchmark price is based on the value home buyers assign to various housing attributes, according to the Canadian Real Estate Association.

The overall MLS HPI composite benchmark price for Grey-Bruce was $619,800 in April, which was an increase of 25.8 per cent from April 2021. For single-family homes the benchmark price was $623,500, up 25.7 per cent from a year ago, for townhouses and row units it was $506,300, up 26.5 per cent, and for apartments it was $382,000, up 40.7 per cent from April 2021.

Meanwhile, Dickie said agents are starting to see more listings coming onto the market, which is welcome as the region had been experiencing an extended period of record-low supply.

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While the 447 new residential listings in April was down 4.3 per cent from a strong April 2021, they were close to 14 per cent above the five-year average.

At the end of April, the number of active residential listings totaled 461 units, which was up more than 10 per cent from the end of April 2021, but still 28.7 per cent below the five-year average.

The months of inventory numbered 1.6 months at the end of April, which was up from the 1.1 months recorded at the end of April 2021, but still below the long-run average for the time of year of 4.7 months.

“Even this morning I was talking to several agents and they were talking about how they had more and more listings coming up, and there are more and more listings on the real estate board on a daily basis than we had seen earlier in the year,” Dickie said. “That is positive that people are getting their houses listed, which helps the whole situation out.”

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Canmore real estate developments back on after tribunal ruling | CTV News – CTV News Calgary

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A contentious proposed real estate development in Canmore got new life Tuesday.

One year ago, Canmore town council rejected the Smith Creek development and decided the Three Sisters Village proposal needed significant changes.

Three Sisters Mountain Village Properties Ltd., the project developer, appealed the decision to a municipal tribunal, and Tuesday the town was ordered to allow the projects to proceed.

Conservation groups fought the proposal, saying it didn’t provide enough space for wildlife to travel through the valley.

“Unless overturned, this decision will cause harm to the lands, and wildlife movement and habitat of an important part of the Yellowstone to Yukon region,” said a statement issued by Yellowstone to Yukon Conservation Initiative on Twitter. “Keeping these lands connected and intact is in the best interest of Albertans now and into the future. Connectivity provides the best chance for some of our most cherished and threatened wildlife to thrive.”

There was no word from the Town of Canmore on whether it will appeal the decision.

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Greater Toronto Area real estate approaching ‘buyer’s market’: BMO – Global News

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In the midst of the COVID-19 pandemic, Canadians hoping to buy homes have had to brave a sizzling seller’s market where waiving inspections, blind bidding, and dozens of competing offers are the norm.

Now, BMO’s chief economist says what many potential house-hunters are hoping for — a balanced or, better yet, buyer’s market — may finally be arriving.

Read more:

Canada needs new homes built, but construction industry headed for retirement wall

In a new data snapshot issued by the bank on Tuesday morning, Doug Porter said there’s been a “quick fall” in the sales-to-new-listing ratio which is a key part of assessing who holds more power in the Canadian real estate market.

That ratio dropped from 76 per cent to 66 per cent last month, a level not seen since June 2020.

The Canadian Real Estate Association (CREA) said Monday that level is “right on the border between what would constitute a seller’s and a balanced market.”

As a result, CREA noted home prices have just seen their first monthly decline in two years.

When it comes to the Greater Toronto Area (GTA) specifically, Porter raised the possibility of a buyer’s market.

“The GTA sales-listing ratio plunged to just 45 per cent in April, which is suddenly getting into buyers market terrain,” Porter wrote in the BMO snapshot data assessment.

In contrast, he said that number has been around 70 per cent over the past year, making for a “firmly seller’s market.”

“And what the ratio is now telling us is that prices are about to go from 20%+ gains to a sudden stall. And that’s assuming the sales/listings ratio doesn’t fall further in the coming months.”

Read more:

Bidding war no more: How to make an offer in Canada’s cooling housing market

The decision by the Bank of Canada to keep interest rates at rock-bottom levels during the pandemic has been attributed as one significant factor fuelling Canada’s surging home prices over recent years.

But the shift in market sentiment comes as the central bank is in the midst of a series of rate hikes taking aim at rampant inflation, which has hit 30-year highs as a result of reopening economies, supply chain problems and Russia’s invasion of Ukraine.

A lack of housing supply has also prompted growing political pressure on governments of all levels to increase construction — a challenge, given a wave of retirements poised to hit the construction sector.

Right now, though, BMO economist Shelly Kaushik said in a separate data snapshot on Tuesday that new home construction is increasing, with the industry “firing on all cylinders.”

Whether and for how long that will continue remains to be seen.

© 2022 Global News, a division of Corus Entertainment Inc.

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