According to CMHC (Canadian Mortgage and Housing Corporation), the real estate continues to recover. In the recently released Fall Housing Market Outlook, CMHC predicted that a recovery for the Ontario real estate market, that is already underway, will continue in 2019. After hitting record levels of activity in 2016, Ontario existing homes sales hit a trough in the second quarter of 2018 and are now slowly recovering. “We expect home sales to continue trending higher before easing by 2020, the report stated. “Some prospective buyers sitting on the sidelines early this year will be re-entering the market as they slowly adjust to tighter mortgage market conditions”.

The lagged effects of a strong job market and high levels of in-migration will continue supporting existing home demand before eroding affordability and a slower economy dampen housing demand by 2020”. Sounds like 2019 will be a good year to sell. Keep in mind that this prediction is for Ontario. Guelph’s real estate market tends to be stronger than the Ontario average because of strong employment, demand from GTA buyers and as we all know, Guelph is an awesome place to live!

The city of Guelph had 163 sales in October which was an increase of 7.5% from October of last year. The average sale price for Guelph homes was $493,981. On average, sellers received 99.4% of their asking price and 38% of MLS sales sold for full price or more. The median days on market was only 18 days. October was a busy month for Guelph real estate and there were a lot of happy sellers. Guelph’s numbers echo the CMHC report of a recovering real estate market.

Buyers: A recent article in Inman News called December THE month to get a good deal on a house and December 26 as THE best day to get a good deal. I don’t know many people who go house shopping on boxing day but I have witnessed some good December buys over the years. Sellers aren’t crazy about the prospect of still having their home on the market in the new year and many other buyers are too busy with the holidays to give you competition.

Sellers: Let’s face it, December is a slow month for real estate but it’s not a total lost cause. Buyers looking for homes in December tend to be serious and your home will look great decorated for the holidays. Well priced homes that show well, shouldn’t find it difficult to attract an offer this month.

Dean Manton is your Guelph and area real estate expert. Put Dean’s experience and market knowledge to work for you!

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.

Dean Manton  Broker

519-821-4000

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!