:: Has Barrie hit a price Ceiling? ::

There is no denying that Barrie has for some time been considered by many to be a bedroom community to the GTA.

The lure of a smaller, less densely populated community where drive by shootings are the stuff of Hollywood movies and kids can safely walk to school presents a welcome and affordable alternative to Big City living that has added momentum to Barrie's continuing population growth.

Housing demands in the Barrie region have contributed to the increases in housing prices which in under 20 years have more than doubled in the Barrie area. Does the prediction that we may have hit a ceiling on price and are possibly due for a correction in Barrie hold any merit? I can't see how.

Realtors would just as soon not see local real estate price itself out of reach of the average first time buyer or become so inflated that value is no longer a selling point to potential buyer clients champing at the bit at the south end of the 400 highway. Even with increasing prices, proportionately, Barrie will always offer a more affordable option.

Prices will continue to climb in Barrie based on inflation, rising building costs and in reaction to supply and demand but likely not near as dramatically as in the GTA.

The Greenbelt Act and the Places to Grow Act introduced by the Province have dramatically limited the amount of available land for future home building in the Golden Horseshoe.

The demand for residentially zoned raw land which has been high for the past two decades now far outstrips the availability in south central Ontario. This along with a growing population will continue to drive further out of reach the already sky high home prices in the GTA.

The existing population consists of many who will retire over the next ten years, no longer dependent on the city for income, (and no longer in need of their $600,000 appraised homes they paid $60,000 for in 1972) A good portion of this demographic has grown dizzy from circling wall mart parking lots trying to find a spot and will be ready to leave the hustle and bustle behind.

The new City of Toronto Act now gives Toronto's municipal government the authority to impose a range of powers including a controversial but imminent municipal land transfer tax. This is being spear headed by Toronto's mayor and is backed by much of city council.

The net effect is thousands of additional dollars a buyer will need up front when purchasing a home. That increase in expense is going to take away the ability to buy a home in Toronto from a substantial number of residents and drive many more north of the GTA where they can qualify to make their home purchases.

These added expenses and complications to the home buying process for GTA residents are going to feed the northward migration for years to come and will insure that the home you buy in the Barrie area today will continue to appreciate in value.