One of the most common questions a Realtor® gets asked is, “how’s the market?” And it’s with good reason too. The current pulse of the real estate market drives the decisions of buyers and sellers alike whether it’s in the name of profits, investing, finding a deal, or discovering your dream home.
So, how is the market and how does it fit with your goals?
Here are some current insights that buyers and sellers can use to help navigate the Guelph real estate market.
Average price vs. average price increase: What can you expect when you invest in a Guelph home?
Over a one year period, the average price of a home in Guelph is relatively flat at just over $500,000. This takes into account all forms of homes from detached to condos, townhomes and apartments.
Homeowners will be happy to know that the average price increase over two years in Guelph is just over 23%, which on a CAGR (compound average growth rate) calculation that’s 10.95%. These figures outpace the Toronto Stock Exchange rate for 2017. Considering real estate is a leveraged asset for many, it’s true that homeownership is the largest single investment you’ll make.
Neighbourhood investment trends to watch.
Steady city-wide growth since 2016 has made all Guelph neighbourhoods positive locations to invest in real estate. However, of the 16 identified areas with sufficient sample size, there are differences in growth rates that could allow forecasters to draw some conclusions on future trends and pricing.
Many factors including transit, schools, supply and demand, crime, access to amenities and urban development all play a role in neighbourhood performance that your Realtor® should be able to address in more detail.
Here is a glimpse at current growth rates of Guelph neighbourhoods:
- Exhibition Park +32.4%
- St Georges Park +32.2%
- Onward Willow +31.2%
- Victoria North +19.7%
- Dovercliffe/ Old University +19.1%
- Kortright East +13.0%
City of Guelph average +23.1%
*All neighbourhoods not mentioned in this list are in the range of +20%- +30%.
Are we in a buyer or seller’s market?
Much like the GTA, Guelph’s real estate market has quickly moved from a frenzied, low inventory seller’s market in spring 2017 to a healthier buyer’s environment in fall 2018 due to a balanced supply. Many credit the shift to recent and future interest rate increases.
In both August and September 2018, the percentage of houses selling over the original asking price dropped below 15%. Or in other words, over 85% of the houses sold were at or below the original asking price.
If you’re a seller, pricing homes to sell in today’s market is more difficult than it has been as buyers have more choice and better negotiation ability. This is why having a plan essential for sellers before entering the market. Ensure your real estate agent has a strong marketing strategy that is unique to your home, along with recent, fair comparables to determine the right selling price. Being realistic with your pricing from the start will ensure your home receives the most attention while minimizing price reductions and days on market.
If you’re buying a home, negotiation and sales savvy have returned. Ask for conditions of financing and inspection in order to ensure you’re making an informed decision within a reasonable timeframe. Since using a Realtor to buy a home doesn’t cost you anything, make sure to find one who understands your goals and timelines, while possessing the ability to negotiate a good deal.
Keeping it close to home.
In 2018, over 62% of homes sold in Guelph have been facilitated by the five resident brokerages, making up the largest share of sales. Wherever possible, it’s wise to work with a local Realtor who understands the dynamics of a local market.
If you are planning to buy or sell a home in Guelph, it is recommended to meet with a few different Realtors® to gain a better understanding of their qualifications, personality and strategy to help you buy or sell your home. This article from Realtor.ca gives five questions you should ask in order to make an informed decision.
Ryan Waller is a Sales Representative at Home Group Realty, a volunteer with Onward Willow Neighbourhood Group and a member of the Guelph Chamber of Commerce. For a no obligation appointment please call 519 546 3390, email firstname.lastname@example.org or visit http://www.ryanwaller.ca