This is a guest post by Caroline Doherty of Century 21 B.J. Roth Realty. Information provided courtesy of CMHC.
Summer is now in full force. With the increase in temperatures be sure to hydrate regularly and stay cool. Remember not to leave children and/or pets in your vehicle unattended.
You may think that with this heat no one would be interested in buying/selling real estate but you’d be wrong. Local real estate has been going through many changes so far this year. Due to the strengthening US recovery our local employment has been greatly impacted. Stronger employment and income growth will provide support for our housing demand by 2013.
The increase in buyers coming from Toronto explains the decrease in choice and supply in the Barrie resale market. A widening gap between prices in Barrie and Toronto gave buyers in the GTA an incentive to consider the Barrie market.
Stronger new listings growth in the back half of 2011 will push total new listings higher in 2012 from the final tally in 2011.
Given the strong sales and easing listings in the first quarter of 2012, the sales-to–new listing ratio indicated the market had tightened to the point that conditions were favoring sellers. By the second quarter conditions were easing and, on average, the market will be in balance in 2012. In 2013, conditions will ease slightly, but the market will remain balanced.
The average price of an existing home in Barrie will come in higher in 2012 compared to 2011 due to increased demand and compositional effects in the early part of the year. In 2013, cooling demand and more supply will lead to slower price growth than in 2012.
Low mortgage rates make single family dwellings more attractive. On average, single starts will be up nearly eight percent in 2012 but then fall back somewhat in 2013.
Land constraints and demand for more affordable housing options will support growth in starts of higher-density housing types. Apartment starts were unusually high in 2011 and will fall back from that level. However, in both 2012 and 2013 they will be well above the average of the previous ten years.
The average price has been trending up at a rate of over three percent since 2010. This pace will slow over the course of 2012 and into 2013. Most of the increase will be due to rising costs, particularly the price of land.
I hope that you have found this informative… stay tuned for more!
