The Canadian Mortgage and Housing Corporation (CMHC) recently released the Fall 2013 housing market outlook for Barrie. In the report it highlighted that house starts would increase, existing home prices would increase beyond inflation & newcomer employment would support the housing market.
While still running at a third of their 2002 peak, new home sales will be moving up this year & next. Prices are at an all-time high and the resale market is very tight, builders have plenty of incentives to construct new homes in the area. Two thirds of all properties listed in Barrie are sold, proving it’s a hot market. This is especially true in the $240,000-$250,000 range where many first-time home buyers tend to purchase.
The CMHC is predicting that a seller’s market will prevail in Barrie and area. House prices continue to climb from the lows of 2008-2009, the expected increase is expected to be 1.6% in 2014. This is largely driven by an estimated 7.5% growth in the regions employment by year’s end. Realtors are now seeing multiple offers and bidding wars due to low inventory. Historically low mortgage rates continue to entice first-time home buyers into the market and will continue to do so into the forcible future as the Bank of Canada waits for broad growth in the Canadian economy. Barrie is still a very attractive housing market to Toronto commuters due to the expansion of the GO Train service & the relative house pricing in the two markets.
Migration will significantly contribute to housing demand through to the end of 2014 in Barrie. Employment in the region has been significantly strengthened through a rise in full-time positions, outweighing a decrease in part-time jobs. The most significant growth is seen in 25 to 44 years old grouping, who fuel much of the demand for first home buyers & second home buyers in Barrie. Recent reports have highlighted employers in the area having a difficult time filling specific positions, this will likely have a direct positive impact on the local unemployment rate over time.
Darren Robinson is an expert Barrie mortgage broker, dedicated to offering the best mortgage strategies and provides personal assistance to help people qualify for difficult mortgages and loans. Call 705.737.6161