Low supply and high demand creates high prices in the Barrie market, especially with extremely high prices in Toronto, the over flow demand trickles into Barrie. Due top Barrie’s proximity to the Greater Toronto Area, Barrie and surrounding are, such as Innisfil and Springwater are competing with housing markets in the GTA.
The Canadian Housing Mortgage Corporation released in a Housing Market Insight Report that there is clear evidence of over valuation in Hamilton, Guelph and Barrie due to the extreme prices in the Greater Toronto Area. Meaning, that those who would normally look into York or Vaughn for a home, is now looking to these other areas to purchase a home, creating a comparable market to the GTA. This new found demand and low supply in Barrie is thought to increase new home construction within the city, which will be great for employment opportunities and further the city of Barrie’s economy.
In a recent presentation at the Barrie Chamber of Commerce, Mayor Jeff Lehman noted that the Canadian Real Estate Association shows that the average price for a home in Barrie has grown to 70% over the last three years. He also noted that the low supply will be good for the economy as construction will continue with new homes being built, especially townhouse and mid-rise apartments which will offer more affordable options for middle income earning individuals.
However, this increase in pricing does not lend well to those looking to rent as an alternative, as Barrie has become one of the most expensive cities in the nation for rental properties. In a recent study by PadMapper Canada Rent, their report explains that as of January 2017 Barrie is now the eighth most expensive city to rent in the nation.
These reports show staggeringly high prices both for individuals renting, and those purchasing homes in the Barrie area. The good news is that new construction is soon on the way, as to ease the pressure of such low supply in the city which will hopefully ease prices as well for both home buyers and renters.
By: Megan Bell