Puslinch Market Update October 2017
While most of Ontario seems poised to recover from the summer real estate slow-down it looks like business as usual for Puslinch real estate. I’m sure you’ll remember April when Ontario Premier Kathleen Wynne announced changes designed to cool down the red-hot housing market. “Something had to be done” and surprisingly, the announcement did have a cooling affect on Ontario’s housing market especially in the GTA where the market instantly turned ice cold and prices took a nose dive. In nearby Guelph the affect was not so dramatic and the market experienced what I would call a mental health day or as it turned out, a few mental health months. Sale prices did decrease, about 15% on average, and Realtors experienced a return to the pre-insanity markets of old where you could buy a property without competing with other buyers and your offer wasn’t unconditional, cash, but actually contained conditions for things like financing and home inspection.
But why was real estate market in Puslinch unaffected for the most part? One reason could be that it didn’t experience as much hysteria as the urban markets to begin with. Country properties tend to be pricier than those in the city and higher priced properties attract fewer buyers. Fewer buyers means there’s less possibility of attracting multiple offers. Plus, country buyers usually insist on conditions for things like wells and septic systems which can remove cash buyers from the equation. Also, it can take a while to find the right country property. In some cases, a year or even two! Country buyers are in it for the long haul and when markets slow down and then recover in a matter of a few months, it can have little affect on a rural market.
Puslinch is a relatively small market containing four distinct sub markets of Aberfoyle, Morriston, Rural Puslinch East and Rural Puslinch West. Each sub market may only have a few sales per month. This lack of comparable sales can make pricing tricky and Realtors may have to look back a year or more for good comparables. The same comps can be used over and over again to price multiple other properties. This can have a stabilizing affect of the market.
Puslinch Township saw 6 sales in September and although that number is down 62% from last year at this time, the year-to-date total of 76 is actually up 6% from 2016. The year-to-date sales to listings ratio stands at 61% which means that 61 percent of properties listed this year have sold. There are currently 30 active listings in Puslinch which represents 5 months worth of inventory. The average sale price for September’s 6 sales was $1,064,333 which is an increase of 5% from September 2016. 2 of the 6 sales or 33% sold for full price. This usually indicates that there were multiple offers however none of the sales were over asking price.
Buyers: This is the best time to buy Puslinch real estate in years! There’s 5 months worth of inventory so you should find a good selection of homes on the market to choose from and you may not have to compete with other buyers. If you find yourself in competition, chances are the property will sell close to asking price instead of $100,000 over.
Sellers: 33% of homes sold in September went for full price! These homes were well priced and well presented. Taking the time to prepare your home for sale will pay off! October and November should be very active and goods months for selling before the December holiday slow down. Despite the amount of inventory this is still a seller’s market!
For a free custom market update for your Puslinch neighbourhood, email Dean Manton at firstname.lastname@example.org
Dean Manton is Puslinch’s real estate expert. Now in his 20th year! Buying or selling, put Dean’s experience to work for you! #experiencecounts #upgradeyouragent #my20thyear!