Barrie`s economy on the mend, CMHC says
BARRIE - A real estate market slowdown that began this summer should continue through early 2011, the Canada Mortgage and Housing Corporation says.
In its quarterly housing market outlook, CMHC notes the first half of 2010 showed relatively strong home sales, as first-time buyers took advantage of low mortgage rates in late 2009 and early 2010. That market segment, however, began drying up in the summer.
"Many homebuyers purchased early in 2010 to avoid anticipated mortgage rate increases. This depleted pool of potential buyers explains the current slowdown in housing demand," said CMHC market analyst Edgard Navarrete.
"This effect will dissipate in 2011. Consequently, with continued job growth, activity in both the new and resale market will pick up gradually in 2011."
The CMHC forecasts the average price of a new single detached home in the Barrie area to grow by just over four per cent this year – but remain relatively flat in 2011. CMHC reports the average price of a single detached home rose 4.4 per cent, to $450,000, and forecasts a slight increase next year to $451,500. In 2007, the average single detached house price in Barrie was $329,505, which is higher than the average MLS listing, which sold for $277,000.
The city`s vacancy rate is the highest in years, at 3.9 per cent, and an average two-bedroom apartment rented for $975 in October.
Read the full article
here.