Real Estate Review: What happened in 2016 and what to expect in 2017
This past year the term “hot market” took on a whole new meaning. Here’s a summary of what we saw happen in Simcoe County’s real estate market in 2016 (stats derived from Barrie MLS):
Prices are up over 20% from last year.
The average home price in Barrie and surrounding area jumped to $475k, up from $386k in 2015.
The average days on market for properties was 25 days.
Homes are selling faster – this number is down from 35 days in 2015.
Bidding wars became commonplace.
In some cases, properties sold for more than $75k over list price. This phenomenon has very slowly increased over the last few years but has spiked substantially in 2016. Homes in the average price range that are well presented and marketed are very likely to experience a bidding war.
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Over 5,800 properties were sold in Barrie and surrounding area throughout the first 11 months of 2016.
This is up over 16% from the same period in 2015.
Twice as many properties were listed at $1 million or over sold in 2016 compared to 2015.
The increase of foreign investment and buyers moving north from the GTA to see their purchasing power go further have made an impact in the prestigious home segment of the market. It is amazing what a million dollars buys in Simcoe County compared to Toronto.
Predictions for the 2017 Market
Will the market continue to skyrocket in 2017? Based on our analysis and my team’s experience in the market, it is likely that the market will continue to remain strong. Simcoe County continues to build its reputation and demand thanks to its ideal proximity to both the GTA and cottage country, envied waterfront, and the selection of properties for buyers at every price point.
This is what I think you can expect in 2017:
Low inventory will continue, which means it will remain a seller’s market.
There will be a shortage of new builds and resale units in Simcoe County. Listings will likely continue to have a quick turnover, as the demand for single-family homes will remain high.
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A similar number of sales in Barrie and surrounding area is forecasted.
Sales are expected to remain relatively flat, with totals expected to fall between 5,500 and 5,900 homes sold by year-end.
CMHC reports suggest a slight but modest increase in mortgage interest rates.
Mortgage rates are expected to increase very modestly from 2017-2018. This is consistent with the expected pick-up over the horizon for inflation and real GDP growth by several forecasting institutions.
A slight rise in rental vacancies.
Rental vacancy rates are forecast to edge up slightly to 1.8% next year from 1.6% in 2016.
Development of the annexed land in south Barrie should begin by the end of 2017 or early 2018.
The annexed land in Barrie’s south end is scheduled to start selling online toward the end of 2017, although the increase in inventory will not flood the market or affect the resale market just yet.
Hot market or not, there are always ways you can reach your real estate goals. No matter what side of the market you’re on in 2017, The Faris Team is committed to going full out for you®.
CEO & Broker