Guelph and area real estate market Update June 2024. Although the spring market was sluggish to say the least, the real estate market is holding its own and may be experiencing a cautious and somewhat timid recovery. Here’s a breakdown based on June’s stats:
Quiet Spring Selling Season: The anticipated slow pace in home sales is due to higher borrowing costs and uncertainty surrounding the Bank of Canada’s actions.
Sales Levels: Home sales have not reached pre-Covid levels, indicating a subdued demand despite some recovery.
Home Prices: Average home prices have increased slightly, but this is primarily driven by higher-priced homes being sold. Benchmark prices, however, have seen a decline.
Future Outlook: The market is expected to pick up momentum in the second half of 2024, however this expectation is tempered by the assumption that borrowing costs will remain relatively high, with fewer anticipated rate cuts by the Bank of Canada.
Factors Influencing Market: The primary factors affecting the market include borrowing costs and the central bank’s monetary policy decisions. The reluctance to decrease rates further suggests a conservative approach to economic stabilization.
Overall, while there are signs of recovery in terms of average prices, the market remains subdued compared to pre-pandemic levels, with cautious optimism for improvement later in the year. Guelph and area currently has a 3 month supply of listing inventory. I don’t expect July/August to be super busy but still decent and in September the market should begin to pick up.
