As temperatures began to cool and September’s first leaves hit the ground, the upward trend of Guelph’s real estate market continued. But do cool temps mean a hot market? Buyers that stepped out of the real estate market earlier in the year due to tougher mortgage rules and higher interest rates seem to have renewed interest in buying although the return has been gradual since July. While higher borrowing costs and tougher mortgage qualification rules have kept sales levels off the record pace set in 2016, the demand for more affordable housing outside of the GTA will not be suppressed for long. Many buyers remain positive about home ownership as a long-term investment and communities outside of the GTA deliver a bigger bang for their real estate dollar. As the Guelph and area population continues to grow, the real challenge in the housing market will be supply rather than demand. Prices may fluctuate slightly over the short term but overall demand for homes in the Golden Horseshoe will ensure steady growth over the long term.
September sales for the city of Guelph were 153 which was 6% more than in August. The year-to-date sales (1624) were down 23% from last year at this time. At month’s end there were 316 active MLS listings, an increase of 23% over the previous month and 2 months worth of inventory at the current sales pace. 316 homes is a low amount inventory for the City of Guelph so we’ll need to see an increase in new listings for the fall market to really take off. The average sale price for Guelph in September was $519,932. That’s up 12 % from a year ago. 31% of sold listings in September received full price or more. This is a good indicator that we are experiencing a seller’s market. The median days on market was only 14 days. Another indicator of an active market.
Buyers: Given that the inventory of homes for sale is low, there’s not a lot of choices for buyers currently so you may have to wait a while for the right home to hit the market. When it does, there’s a 30% chance that you’ll be competing with other buyers. Fall is still a better time to buy compared with spring so if the right home comes up, be ready to pounce!
Sellers: October and November will be prime time to sell. Low inventory means that all new listings will attract a lot of attention. Properties that are well priced should attract multiple offers. Selling for over asking price is always fun!
Dean Manton is Guelph and area’s real estate expert. Call today and put Dean’s experience and market knowledge to work for you.
519-821-4000
