Housing Market 2017

Mark Vandenbrink

03/25/22

Low supply and high demand create high prices in the Barrie market, especially with extremely high prices in Toronto, the overflow demand trickles into Barrie. Due to Barrie’s proximity to the Greater Toronto Area, Barrie and surrounding areas, 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 overvaluation 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 newfound 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 townhouses 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.
 
Notwithstanding the completion date as set out in this agreement, The Buyer and Seller may, by mutual agreement in writing, advance or extend the date of completion of this agreement. 
 
Upon completion, the Seller shall provide the Buyer with a notice to all tenants advising them of the new owner and requiring all feature rents to be paid as the buyer directs. The seller will pay to the buyer any rent paid to the seller in error or in violation of the direction for a period of three (3) months following completion, after which period the seller may refuse to accept rent from tenants or return it to them.
 
The Seller represents and warrants, to the best of the seller's knowledge and belief, that there are no disputes between the Seller as landlord and any tenant as to the state of repair of the leased premises, the payment of rents, contravention of applicable rent review legislation for residential tenancies, or other material items concerning the tenant's lease agreements other than specifically set out in this agreement of purchase and sale. The parties agree that these representations and warranties shall survive and not merge on completion of this transaction, but apply only to those circumstances existing at the completion of this transaction.
 
Unless otherwise agreed between the buyer and seller, the seller shall not renegotiate any leases after this agreement becomes unconditional. The Seller agrees to PROVIDE VACANT POSSESSION of the main 2 bedroom apartment and the Buyer agrees to assume, the existing tenant(S) occupying the basement 1 Bedroom unit.
 
The Seller agrees to forward contact information for the tenant (s) occupying the basement 1 bedroom unit for discussion.
 
The Seller represents and warrants that a basement 1 bedroom apartment is occupied by a monthly tenant at the rate of $1,100 all-inclusive, per month, payable on each month. The Parties agree that this representation and warranty shall survive and not merge on completion of this transaction, but apply only to those circumstances at the completion of this transaction.
 
Seller represents and warrants that the Tenant has regularly paid their rent on time and there are no issues with respect to the tenant which, if disclosed, might impact the Buyer's decision to purchase the Property and continue to rent to the Tenant. This representation and warranty shall survive and not merge on the completion of this transaction.
 
The Seller agrees to provide the following, within 2 (two) banking days (excluding weekends and holidays) after acceptance of this Offer: a copy of the Lease Agreement(s), if any OR a tenant acknowledgement form.
 
The Seller agrees to forward to the Buyers Lawyer, at closing, all further deposits being held on behalf of the current tenants, if applicable.
 
The Buyer shall have no later than 6:00 P.m. on the FIFTH (5th) Business Day (excluding weekends and holidays) from the date of acceptance of this offer, to verify the seller's Financial covenant of the tenants (last month's rent) is satisfactory to the buyer. If the tenant's covenant is not acceptable to the buyer, the buyer may terminate this agreement by notice in writing delivered to the seller personally or in accordance with any other provisions for the delivery of the notice in this agreement or any schedule thereto within the time period stated above and the buyer's deposit shall be returned in full without deduction. 
 
Pending Completion, the seller shall not give any notices of rent increases.
 
The Buyer acknowledges that the property is being sold as a Single-family residence and is not recognized as a Legal Second Suite.

Pros

 

Cons

Newly constructed homes tend to be a bit more expensive than resale homes, mainly due to costly upgrades. Most new construction homes are approximately 20% more expensive than resale homes. Watch out for the upgrades as they tend to be marked up, and can add up quickly so make sure you are fully aware of what is the standard and what are upgrades. Many upgrades are cheaper to make yourself such as light fixtures or paint. Once you have a new build you might notice that the rest of the neighbourhood is in a state of construction for a year or two after you move in, another thing to keep in mind when purchasing a new build. Newly constructed homes tend to be on smaller lots compared to older homes or resale homes, so if space is a big one on your must-have list you may want to reconsider a new build or pay the extra money for a larger lot.
 
While it may seem like buying a newly constructed home is easier, it's not always. So be sure to have all the information, and make sure you’re aware of costs and how a new build will affect your lifestyle, as a new build is a home and a neighbourhood you’re buying. 
 
 

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Mark VandenBrink is an award-winning Century 21 Real Estate Professional and someone who believes in helping others reach their dreams of home ownership.

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