‘A lot of adjustments’: Latest Barrie-area real estate stats show home prices are rising, but overall sales are falling ‘sharply’

With more interest rate hikes expected and supply exceeding demand, Simcoe County could be heading for a rebalancing of the market, according to the Barrie and District Association of Realtors.

The real estate market is changing.

Statistics released by the Barrie and District Association of Realtors (BDAR) on August 9 show that 444 homes were sold in Simcoe County in July, down 46.1% from the same month last year. The average price of residential units sold was $788,104, up 1.6% from July 2021.

In Barrie specifically, 134 residential units were sold last month, down 48.5% from the same period a year ago. The average price rose 6.8% to $775,463.

All of this means that buyers and sellers will reset their expectations in the coming months, said BDAR Chairman Luc Woolsey.

“Home sales have fallen sharply since February of this year, due almost entirely to a rapid series of sharp interest rate hikes that have pushed mortgage rates up from historic lows,” he said. he declares.

“There will be a lot of adjustment on both sides of the market over the rest of the year as all participants revise their expectations – buyers on what they can afford and sellers on price expectations. We still have some rate hikes expected before the end of the year, so we expect the market to continue to rebalance as supply outpaces demand.”

Inventory levels continue to rise across the county, with a value of 4.3 months measured last month. So, with supply exceeding demand, the market is likely on the path to rebalancing, Woolsey said.

Year-to-date, 4,198 units have been sold in Simcoe, down 36.9% from January to July 2021. However, the average year-to-date price has reached 921 $656, or 19.2% more than the same period last year.

Again, Barrie followed suit with a 39.9% drop in the number of units sold year-to-date (1,373) and a 22.4% increase in average price ($886,730).

Here’s a look at how other municipalities in the county fared between January and July of this year:

Collingwood — A total of 301 units sold (down 32.1% compared to the same period in 2021); the average sale price was $969,018 (up 23%).

Innisfil — 293 units sold (40.4% decrease); average price of $1.02 million (an increase of 22%).

Midland — 173 units sold (down 29.1 percent); average price of $685,057 (up 14.7%).

Orillia — 288 units sold (a decrease of 41.5%); the average price was $732,729 (a jump of 17%).

Wasaga Beach — 332 units sold (down 29.8 percent); average price of $793,898 (10% increase).

BDAR represents over 1,500 real estate agents throughout the region. For the full report, visit bdar.ca.

Eleanor C. William