More Growth in Barrie Housing Market in 2016

TORONTO, ONTARIO--(Marketwired - May 18, 2016) - According to the Canada Mortgage and Housing Corporation (CMHC) Spring Housing Market Outlook report for the Barrie Census Metropolitan Area (CMA), starts are expected to rebound to 1,100 to 1,300 units and 1,000 to 1,400 units respectively in 2016 and 2017 as more construction will occur outside the City of Barrie.

Sales of existing homes will pick up in 2016 to between 5,300 and 5,900 before declining slightly in 2017 to between 5,100 and 6,000. Housing demand in the Barrie CMA is driven by the flow of migrants from the GTA. A strong sellers' market in the Barrie CMA will put more upward pressure on the average MLS^® price in 2016. In the rental market, the vacancy rate will increase to 1.8 per cent and 2.1 per cent respectively in 2016 and 2017

"Barrie housing demand will grow as more buyers from the GTA will continue to move north to look for more affordable homes. Both baby boomers and young families will continue to relocate to Barrie because of its proximity to both the GTA and cottage country. Given the scarcity of land in the City of Barrie, new construction will expand further to the Town of Innisfil and Springwater Township", said Abdellah Massaoudi, CMHC Market Analyst for the Barrie area. "Completion of a number of purpose-built rental apartments, weak employment prospects for youth aged 15 to 24 and fewer students as Laurentian University withdraws from Barrie will push the vacancy rate upward."

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