by Tim Lintick
on Wednesday, July 10th, 2019 at 1:22pm.
As we take a look back at the month of June 2019, the real estate market seems to show that buyers are looking before they take the big leap into home ownership. Homes are sitting on the market slightly longer, as buyers do their research and take a good look at all the inventory out there. Days on the market increased ever so slightly year-over-year by nearly 3% to 35 days. Buyers are an educated bunch, and know when a seller is asking just a bit too much for their property compared to what else is available on the market. And it seems buyers are not so eager to pay over asking anymore. Perhaps because there is more inventory out there to choose from. Perhaps because they are just saying “No” to the stress of multiple offers and bidding wars, preferring to wait instead for another property, another opportunity. Paying more than market value is a big concern for buyers, who not only may feel they were had or taken advantage of, but may not be able to come up with the financing for an overvalued property. Sure, some did sell for at or slightly over the asking price in June, but the majority of single family homes sold for about 97.4% of the asking price. However, that said, sales of single family homes in Barrie and area took a big leap year over year-to-date – by more than 16%. Average sale prices were on the rise slightly too, by 1.8% to $564,123. It is interesting to note that the price range with the strongest leap in sales was the $450,000+ range, with an increase of 18%. And that is encouraging, given that buyers have more challenges than ever when qualifying for financing. Another interesting fact in June found more buyers were choosing two bedroom homes, with an increase of 15% doing so. And the majority of buyers, more than 11%, chose single family homes, compared to townhomes or condos. The communities which saw the biggest leap in price month over month were Collingwood, Bradford West-Gwillimbury, and Wasaga Beach. Areas which saw some of the biggest decreases in price in June compared to May were Springwater, Innisfil, and Oro-Medonte. With affordability still very much on the minds of buyers, bankers and the government, a sobering study by Generation Squeeze Lab has found that average home prices in Ontario would need to decrease by $307,000 in order to reach a level of affordability by the year 2030, or full-time earnings would need to double current levels. Also, it takes approximately 15 years for working adults to save for a 20% downpayment on an average priced home. Thankfully there are options out there to help buyers who have less than the ideal 20%, including mortgage insurance, and the new First-Time Home Buyer Incentive announced by the federal government, and set to begin this fall. More on that coming soon! So, as we settle in for what we are hoping to be a sunny and warm summer, it will be interesting to watch and see how the month of July fares for buyers and sellers.