Barrie’s Real Estate Market Struggle Posted onAugust 28, 2017June 18, 2020/ Devry Smith Frank LLP Many home-buyers got caught in the spring real estate downturn. As a result, many homes have had delayed closings and people have even backed out of real estate deals, not caring that they will lose their deposit. Most of this stems from the buyers deciding to purchase a home in the heat of the market, placing a competitive down payment, only to realize that as their closing date approaches the value of the home has decreased significantly, sometimes more than the deposit that was made. Others have not been able to close due to the mortgage amount not meeting the purchase obligation of the home. Peggy Hill, a real estate agent for Keller Williams said, “closings have been stalling [everywhere] since the end of June.” In Barrie, even though prices are not at the level that Toronto has seen, the drop has been precipitous. Barrie’s average price for a home was $471,822 in July, while March was $570,199. That’s a $100,000 difference in a matter of months. Back in July of 2016, 208 of 260 homes listed were sold, but this July saw 201 sales with 683 active listings. The real estate frenzy in Barrie mimicked that of Toronto, with home selling in a week well over list price. Barrie homebuyers were even experiencing the same competitive market when looking to buy, resulting in bidding wars, and competing with people who live outside of the region, like buyers from Toronto who wanted to get out of the city. Unfortunately, the tough lesson here is that “a heated market does not automatically translate into a true market value. When you take away the heat, it settles down into something that is perhaps more reflective of what true market value is,” says Appraisal Institute of Canada’s CEO Keith Lancastle. Buyers tempted to walk have to realize that they may face a lawsuit. For example, if a house is bought for $500,000 and you decide to forfeit the deposit, the seller goes and gets $450,000 from another buyer, you can be sued for the difference. Realtors may also sue, because they are not getting a commission and have to incur additional legal and carrying costs. Some advice, be careful in the current real estate market. If you can wait it out, it may be a better idea than investing now, you don’t want to end up backing out of a deal only to realize you owe money to the seller and/or are being sued by a realtor. If you are in need of a Barrie Real Estate or Commercial Real Estate lawyer, please visit our website and contact one of our Barrie Real Estate lawyers today. If you are in need of any other services or have any questions, you may also contact our Barrie office directly at 705-812-2100. By: Nicolas Di Nardo “This article is intended to inform and entertain. Its content does not constitute legal advice and should not be relied upon by readers as such. If you require legal assistance, please see a lawyer. Each case is unique and a lawyer with good training and sound judgment can provide you with advice tailored to your specific situation and needs.” Related Posts Posted onJune 27, 2017June 22, 2020/ Devry Smith Frank LLP Rent Increase capped at 1.8% in 2018 By: Nicolas Di Nardo Under Ontario law, rent increases can not exceed 2.5 per cent. However, under the new housing reforms, the Liberal government extended their rent control to buildings since 1991 and landlords are required to apply to authorities if they are seeking to increase rent by more than 1.8 per cent next year. This will [...] Read more