According to the CMHC report, the housing market in Barrie and Orillia over the first half 2010 reveals an improving economy with an increase in existing home sales and new listings, as well as sustained low mortgage rates. With sales in Barrie and the area reaching 4600 units, the market will favour sellers in 2010 and should eventually move towards a buyers market in early 2011. The average price of a new single detached home will go up over 2010. The detailed report of the resale homes market shows that with the sturdy recovery in employment, combined with low Barrie and Orillia mortgage rates, existing home sales will grow by over six percent in 2010. This growth has been spurred by home buyers both new as well as second time buyers. This said, the high level of sales should slow in the second half of 2010 due to of higher mortgage rates, new mortgage rules and the introduction of the HST. With high demand in the resale markets this year, home prices have increased which is encouraging more listings. This increased demand in Barrie and Orillia may cause current home owners to believe they can sell at a better price. As sales are made to repeat buyers, they will list their home reaching a high of a 12% increase in new listings over last year. In 2011 home prices in Barrie and low mortgage rates will cause modest growth and the market will return to a more balanced state.
The Barrie and Orillia new homes market will double in growth compared to 2009. A scarce resale market has forced many buyers to turn to the new home market for their purchase. As a result, the inventories of new homes will decline causing an increase in new construction to meet the increase in demand. The Barrie and area market may witness a slight dip in 2011 in new home sales because many buyers will bring their purchases forward into early 2010 to avoid the HST. The HST will affect homes above $400,000 and thus 2011 will less new construction. This said, over the long term the starts in Barrie and Orillia will once again begin to move upwards as new land is transferred from the town of Innisfil to the City of Barrie, and will be made available for residential building. Thus, over the long term, lots will be made available to sustain the housing expansion.
A more detailed analysis reveals that starts of single detached homes in Barrie and Orillia will increase in 2010. These homes backed by low Barrie mortgage pricing will consist of about two thirds of all new construction in 2010. These houses will become more affordable in 2011 with further increases in their share of new construction. Row homes and apartments will also be sought by some because of their affordable prices. Lower density apartments with lower costs will be a favored option in the City Center of Barrie. Employment in 2010 will move higher and will continue to increase into 2011. This said, much of this growth represents a recovery in the job losses sustained in late 2009 and early 2010. The City of Barrie, and to a lesser extent Orillia should witness growth in the labour force, which is largely due to migration as the economy in the Barrie continues to grow. At the time of writing, the short term mortgage interest rate should begin to rise in late 2010. It is thought as well that posted mortgage rates will slowly increase through 2011. The rise in Barrie and Orillia mortgage rates could be steeper if the economy recovers. Conversely the rate of increase could slow or be stunted if the recovery is modest.
The housing report shows the improvement in market sales. As to this the Barrie and Orillia’s market for new homes will double showing the stability in 2011.
Posted by: Barrie Real Estate | 01/26/2011 at 06:41 AM
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Posted by: Belstaff Chaquetas De Cuero | 12/21/2011 at 09:40 PM