In August 2024, Canadian home sales saw a modest increase of 1.3% compared to the previous month, marking their highest level since January and the second highest in over a year. This uptick followed the Bank of Canada’s first interest rate cut since 2020 in June, and a subsequent cut in late July, indicating some positive momentum in the market but the big question is, are buyers waiting for more rate cuts before wading back into the market?
The overall housing market appears to remain in a holding pattern. And while there are indications of life due to the easing monetary policy, many prospective buyers seem to be choosing to wait for even better affordability as interest rates continue to trend downward and prices remain stable across most regions.
In our local market, September sales (130) were about the same as August although up significantly from a year ago. The average sale price for Guelph was $816,479, up 3% from August and the average time on market for those sales was 20 days, three days quicker than the previous month. It’s a little too soon to make the call but it looks like a gradual recovery may be underway.
On October 1st, there were 449 active listings in the city of Guelph. That represents 3.5 months worth of inventory at the current market pace. This means that there are plenty of homes for buyers to look at if they are feeling motivated. But will they? My latest listing sold over asking price in 3 days. That’s not a typical result but it could be a sign of things to come.
