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Can Prices Increase in a Slowing Market?

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Guelph market updateGuelph Market Update August 2021

Can prices increase in a slowing market?

Since reaching their peak in March, Canadian home sales have been on a downward trend. Yet, with the number of new listings dropping simultaneously, market conditions will likely continue to be rooted in the favour of sellers and keep prices climbing, according to new market commentary.

A recent Canada Economics Weekly report published by Capital Economics’ Senior Canada Economist, Stephen Brown, suggests that home prices could continue to increase based on declining sales and new home listing levels recorded in June.

“The local real estate board data suggest that home sales fell further in June but, with new listings declining as well, house prices look set to keep rising,” said the report.

https://www.livabl.com/2021/07/shortage-listings-canadian-decline-capital-economics.html?fbclid=IwAR0D0M1pjW4Mh6bh2x131J1FyhO-JMJMPcZVdqIozNh-bm5FsN2OWnA2X8E

Although the stats indicate a market that is slowing down slightly and has been for the past 3 months, they are misleading. The market isn’t slowing due to a lack of demand, but rather a lack of inventory. We are still in an extreme seller’s market and homes attracting multiple offers and selling well over asking price is still commonplace. If autumn brings a fresh injection of new listings to the market, we can expect a busy fall.

The number of sales for Guelph in July (206) was down 25% from the previous month. The average sale price for July increased slightly to $733,000 or $485 per square foot. The average time on market for MLS sales was 17 days. Sellers received on average 105% of their asking price which means that homes sold slightly more than asking price on average. Going forward into August, there are only 105 active listings in Guelph which represents about 2 weeks worth of housing inventory. August is usually the slowest month for real estate next to December so don’t expect a ton of activity until the kids go back to school.

Are you thinking of making a move in 2021? Put RE/MAX, real estate’s premier brand and my 20+ years of real estate experience to work for you! Call/text/email/DM me and let’s get started with a free home evaluation and custom marketing plan!

Dean Manton  Broker

RE/MAX Real Estate Centre Inc

519-716-4663

[email protected]

reasonstohiredean.com

#experiencecounts #20plusyears #Deansellscountry #Puslinchrealestate #remaxcanada

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virginia Hildebrandt
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The best part of selling our farm was working with Dean. He made suggestions for staging, had the property and our home professionally photographed and presented in a video and then walked us through showing and a successful sale. He was professional and gave honest answers to all concerns and questions. I don't think we could have done better with anyone else. V & H Hildebrandt
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Barry Newell
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We have used Dean as our realtor before and when we decided to sell our home, there was no question of which realtor we were going to use. Dean is friendly and professional and answers all your questions and concerns. We had some difficulty with a place we thought we had, and Dean went above and beyond to help us find another place, which we are very happy with!!! Thank you Dean for walking us through this and keeping us calm through some of the unexpected twists and turns!! If you are looking for a realtor who listens to you and understands what you are looking for, then I would highly recommend Dean!!!
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Ivy Tang
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We’re first time home buyers and Dean helped guide us through the entire procedure. He was always flexible with scheduling around our needs for the entire process - house tours, inspections, final walk through etc., and gave us advice based on his experiences. Thank you to Dean for his help on our first home.
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Juergen Marquardt
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Working with Dean on the sale of our Guelph home was a pleasure, he was very knowledgeable in regards to market value & helped us significantly in regards to staging our home. Our house sold in just under ( 2 days ) after being posted, Dean also guided us through the sale transition making it easy & unstressfull. We would highly recommend Dean & would surely use him again for any sales or purchases in real estate.
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Shazad
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I purchased my first home with Dean and he was a great person to work with. He responded quickly to any inquiries we had, ALWAYS answered his phone, checked up on us after we settled into our new home and ensured that we were happy every step of the way. Thank you Dean!
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william knetsch
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Dean hit the mark on all levels.
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Terri Manolis
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We had an amazing experience with Dean, he was thorough, professional & a pleasure to work with! Highly recommend!
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Laurie Valeriote
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Dean is a great guy and did a wonderful job for us when he listed and sold our home. He is so personable and a great listener. His communication was top notch and we really appreciated being able to get a reply from him very quickly when we had a question. He worked hard to do a market analysis for us and did a beautiful, thorough presentation of it. He was very knowledgeable about the area we lived in and where to price our home to get what we needed. Any concerns we had about anything, he addressed immediately. Thanks Dean for selling our home! Great experience!
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Mary-Catherine Pazzano
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Dean was an amazing Realtor for us. He was super responsive, extremely helpful, and knew a lot about what to look for when buying a home in this market with no conditions. His years of experience are definitely evident. His manner is also super calming, which is an amazing personality feature in a process that is both stressful and exciting! I would happily recommend Dean anytime to anyone!
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