Guelph 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.
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
dean@mantonteam.com
reasonstohiredean.com
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