The Barrie real estate market in 2024 was definitely a roller coaster, with some surprising twists and turns. Let's break down what happened and what we might expect in 2025.
Early 2024: A Hot Start:
The year began with a lot of uncertainty, but the market quickly picked up steam. Low inventory led to multiple bids, especially for properties under $700,000, including townhouses and those in need of some TLC. Another factor contributing to bidding wars was that real estate agents brought properties to market at low prices, creating a frenzy as they sold over the asking price. This competitive environment made it tough for buyers. Interestingly, in the higher end of the market, some properties in areas like Snow Valley sat for a while before selling quickly in a brief window.
Summer Slowdown:
As the year moved into the summer, the market cooled down considerably. Many sellers listed properties, but they were often overpriced for the current market. As a result, only 25% of listed properties sold during this period. This shows that pricing is crucial. The market is driven by supply and demand, not by real estate agents' commissions.
Fall Market Rebound:
Things took a positive turn in the fall, largely due to five interest rate decreases throughout the year. This gave buyers more confidence, and sales picked up in October and November. In November, there were 617 sales in Simcoe County, a 63% increase over the previous year. The average sale price was $811,934, a 3.41% increase from November 2023. New listings were also up nearly 99% compared to the year before. This increase in inventory gave buyers more options, which can lead to a drop in prices. However, this positive trend slowed down in December due to the holidays.
2024 Overall: A Balanced Market:
Overall, 2024 was a balanced market, good for both buyers and sellers. By the end of the year, there were 584 total active listings, a drop from 732 in November as people took their properties off the market for the holidays. Interestingly, the "spring" market actually begins in February, as people begin to list their houses then.
The Rental Market Surge:
One surprising trend in 2024 was a significant increase in the rental market. There were 283 vacant residential listings, compared to 120 the previous year, suggesting that investors who could not sell their properties opted to rent them out. This increase in supply caused rental prices to come down as renters had more choices.
What to Expect in 2025
Experts predict a rebound in home sales with a significant increase in demand in the spring. Early indications suggest that the market is picking up, with increased showings and offers. Another Bank of Canada announcement is expected at the end of January, which will be a big influence on the market. The market is considered dynamic, so it's important to work with a real estate professional who understands the current conditions.
In summary, the market may see some price increases at the start of the year, followed by a potential slowdown in the summer. While inventory is rising, sales have stayed relatively steady, creating a complex situation.
If you're thinking of buying or selling, it's a good idea to seek out experienced real estate professionals who are active in the local market.
