Headlines around the country speculate on the potential impact of COVID- 19 on the Guelph real estate market. Some are calling for an outright crash due to record unemployment rates. Some are saying that when all this dies down, we’ll just go back to where we left off with strong houses for sale in Guelph. Who’s right? Who’s wrong?
And most important, what is really happening out there in the Guelph real estate market?
Last month, Beth and Ryan Waller reported that COVID-19’s impact sent prices plunging 70%. It made sense in retrospect: Guelphites were following the rules and self-isolating. They weren’t looking at homes to buy and if they didn’t need to sell, they didn’t sell.
But as the Ontario government begins to cautiously ease up on restrictions, people embraced a new real estate market.
We are starting to see some recovery in Guelph homes for sale
The City of Guelph has realized 5 consecutive weeks of increasing sales. Houses for sale in Guelph in the past two weeks have been back at levels realized pre-COVID. It appears on the surface that, for now, we are slowly recovering. However, there are some interesting trends that emerge to show just how dynamic the market can be.
Many people speculated that sellers would panic and put their houses for sale Guelph as soon as reasonably possible. This floods the market with homes and cause a decline in prices. In fact, the overall number of houses available has been declining over the past few weeks. Buyers are buying faster than sellers can get houses on the market. Although still early, there are a few interesting trends that have emerged.
Despite a rough 8 weeks, the average price of a home in Guelph has still increased by almost 11% in 2020. However, the market share of condo sales in Guelph has been declining each month.
Condos now represent only 18% and 25% market share respectively. This is mainly due to two factors: buyers have been snapping up freehold homes at a faster rate, as well as fewer condo developments offering new units for sale. Sure, the average price of a condo is increasing, but not at the same rate as freehold homes. If you are considering a condo purchase or sale, it’s recommended to ask your REALTOR® to watch this segment closely for you as it appears to be changing quickly.
The average price of a home in Guelph has increased 11% this year. There are some neighbourhoods that are really propping up this number. If you own a home in the area of Kortright East of Gordon St, you’re leading the way. With a +43% increase in average price, this is mainly due to new higher-end development. However, it still plays an important role in the total Guelph growth.
There are other notable average priced neighbourhoods gains. These include Victoria North (+18%), Riverside Park (+17%), Kortright West (+15%) and Village by the Arboretum (+13%). The only decline in average price year to date is the General Hospital area at -1.3%. However, this may be due to generally low sales volume, this may be just an issue of timing.
Lastly, we’ve seen the price bracket of $500- $600,000 rebound quickest in Guelph. Over the past few weeks, this segment has represented over 40% of the sales within Guelph. At the same time, new listings in this price bracket haven’t increased. As a result, this means that if you’re a seller and were considering selling, now may be the time.
With the re-opening of retail and other businesses, real estate in Guelph is slowly starting to improve. Buyers may not be able to attend open houses yet. There are still a variety of online and virtual tools that could be used online to see houses for sale Guelph. Viewing homes with a REALTOR® is available to serious buyers. However, strict safety precautions are to be taken to ensure the safety of both buyers and sellers.
Questions? Feel free to contact Beth and Ryan Waller.
Source: GDAR data, 2018-2020. $ volume and unit sales, City of Guelph.