Guelph market update August 2018. Have you ever heard the old saying, “when America gets a cold, Canada sneezes”? The saying demonstrates just how closely the two countries are linked economically. When something happens in the US economy, good or bad, the results are undoubtedly felt north of the border. The same could be said for the Toronto and Guelph real estate markets. When Toronto’s real estate market gets the sniffles, the Guelph market is well advised to stock up on some tissues. Even though each city’s real estate markets are separate and distinct in many ways, we can look to Toronto or the GTA if we want to know what’s in store for Guelph in the coming months.
Stats recently released by the Toronto Real Estate Board (TREB) show that home sales picked up steam in July across the GTA, with strong year-over-year gains recorded across all housing types and price ranges. The numbers indicate “an increase in demand for ownership housing so far this summer” according to Jason Mercer, the board’s Director of Market Analysis. Home sales in the GTA were up 18.6 per cent from a year ago, and detached homes, saw an increase of 26.8 per cent. The average sale price in July also increased 4.8 per cent to $782,129. “It appears that some people who initially moved to the sidelines due to the psychological impact of the Fair Housing Plan and changes to mortgage lending guidelines have re-entered the market,” says TREB’s Mercer in a statement accompanying the data.
Guelph also experienced a year-over-year rise in sales. July’s sales were up 19 per cent from 2017 although the year to date sales were still down 16 per cent over all. The average sale price for July was $506,838 and 36 per cent of MLS sales sold for full price or more. The listing to sale price ratio was a healthy 99.2 per cent meaning that on average sellers received 99.2 per cent of their asking price.
The amount of properties listed for sale year to date at the end of the month was 1931. That’s down 8 per cent from a year ago. Active listings stood at 304 which represents approximately 1.8 months of inventory. This is not a lot of choice for buyers and if the market is picking up. We’ll need to see an influx of new listings come fall to maintain a healthy balance.
If July’s market increases become a trend, we could be looking at a busy fall for Guelph real estate. I’d like to wait for August’s numbers before I make a prediction but if August shows another increase, we could very well be looking at an active fall market.
Buyers: August and early September could be your best bet to find good value before a potential autumn market upswing.
Sellers: Use the nice weather to get your home ready for the fall market. The second half of September to Mid November will be peak time to sell.
Dean Manton is Guelph and area’s real estate expert! Put Dean’s experience and market knowledge to work for you!
