Three reasons why your patience could pay off as a buyer in the next eight weeks- keep calm, realtor.ca regulars.
Last week in Guelph real estate there were 52 sales, but most notable was that the average sale price of a house in Guelph: over $740,000, 10% over the asking price. That may seem high for any of the regulars who are searching realtor.ca on the daily- and they’re right. The average price in 2020 was $615,000 at an average of 2% over asking price. 2021 has started off with a bang. But we don’t believe that this trajectory of growth is sustainable.
If you’re a buyer right now, you already know this information because you’re feeling the pain.
You’re going through the dance of finding houses on realtor.ca, going to houses, putting in offers based on what you can afford (versus any comparables) and hope that you have a chance.
Our lovely buyer clients were one of 29 offers on a house this week and despite offering more than $160,000 OVER the asking price and offering to pay cash- as in, from their bank account with no mortgage required, still didn’t get the house. That’s what we’re dealing with.
Any new inventory is quickly eaten up, most houses are reviewing offers in a week in an attempt to get multiple offers- and, they’re getting them alright. Sellers are in full control of this market. The saving grace right now are Guelph condos for sale. If you’re looking in this market, you have a lot less competition.
As a buyer, this gets old. You can only be involved in this emotional roller coaster so many times before you decide that you don’t want to do it anymore.
But, we believe buyers are going to get a bit of relief in the coming eight weeks and here are 3 reasons why:
New sellers seeking new highs
Your neighbours just sold their house for a record amount. In fact, it’s 10% more than you thought your house was worth which suddenly got your wheels turning. Maybe now is the time to make a change and move to the country. You weren’t planning to sell, but you’re noticing the prices on realtor.ca seek to be rising and you aren’t tied to your house anymore. Maybe now is the time to test the market at the new highs to try and cash in.
We’re finding more sellers who have flexibility in their timelines deciding that they want to test the market while it’s at an all time high. You’re always taught to sell at the high, right? We anticipate these sellers will fuel some of the new listings in February.
The Stay at Home order is keeping Guelph sellers off the market
Ontario’s Stay at Home order that is keeping people off the roads and at home and kids out of schools. It’s also keeping houses off of realtor.ca. If you’re a seller and were planning to list your house for sale in early 2021, you probably didn’t do it (and as parents of three kids, we understand). Given a choice, most people would definitely hold off on
In fact, this intimate at home time may change the way you use your house. Some parents may realize that they really do need more space- now that they’re using every. Single. Inch of it for kids desk space and quiet.
Beth and Ryan anticipate that once this Ontario Stay at Home order is lifted (currently Feb 9), that we’ll see a lot more inventory hit the market
Spring market brings sellers to realtor.ca
One consistent element (with the exception of last March and April, of course) is the spring real estate market. It’s the hottest time of the year for real estate listings. Every spring, sellers come out of the winter slumber and decide they want to move before summer starts. Maybe a house with a pool, or a house with a bigger yard.
If buyers who are losing these days on homes can hold out for another 4-8 weeks, it could be worth it financially. The real estate market, like every other market works on supply and demand. That is- more supply brings prices down, while less supply, like we’ve been experiencing will increase prices.
To be clear, we’re not expecting a real estate correction. There is no short term crash in our mind, but we do believe that buyers could get a break of about 5% on the average price of a home in Guelph in return for their patience.
Beth and Ryan Waller are Guelph real estate agents and Guelph realtors with Home Group Realty. You can reach them at 519 546 3390 or by email at https://bethandryan.ca