Real estate predictions for 2022: What’s happening in the Guelph real estate market?
Ryan: It’s been a tough market for buyers. 2021 has been a strong seller’s market for most of southern Ontario. We started the year with very little supply and huge demand which is a recipe for rising prices. It’s a big guess to give real estate predictions for 2022, but we’ll try based on the info we have.
Beth: Most of the demand is coming from buyers in area code 437, 416 and 905 who see Guelph real estate market as a cheaper housing option. Buyers are frustrated and tired of competing and I don’t blame them.
Ryan: Sellers are doing well, but unless you’re moving to a cheaper market, you’re selling high and buying high in the same market- for what? Unless there is a compelling reason to, sellers are opting to stay put.
Beth: And it’s the reason the renovation business is on fire!
What are your real estate predictions for the next 6 months?
Beth: In short, not much. Ryan and I predict the market is going to bounce around with modest gains of 2-5% in average price between now and spring 2022.
Ryan: Low interest rates, strong employment and immigration will keep buyers active. Until we get to a situation in Guelph where the supply can keep up with demand, I can’t see it declining.
Beth: But even we think something has got to give. Rising houses prices isn’t sustainable long term at this pace. We anticipate more people will consider selling this winter because of low inventory- there are some pro’s of selling a house in winter
Ryan: Yes and it’s starting to impact rental prices. We’re experiencing a rise in rental prices as there is more demand than supply in this segment as well. One real estate prediction we have is a rise in condo prices.
What advice would you give buyers right now?
Ryan: Scouring realtor.ca for listings is one thing, but if you want to get into the market you’ll need to be prepared. It’s a strong seller’s market where the sellers are in control. Although as a buyer you don’t like to hear this, if you want to buy a home in today’s market you’ll need to put your best foot forward.
It was just last year that Ryan spoke with the Financial Post regarding Guelph being on the hottest real estate markets in Canada. And- this continues to be the case.
Waiting for a “correction” hasn’t worked out in a meaningful way for buyers in the past 20 years. We’d genuinely suggest just getting into the market, even if it’s not your “forever home“.
Beth: We always advise our clients to talk to their bank in advance of looking at homes. This ensures that you know what you’re pre-approved for. It also allows you to get the best mortgage rate and can confidently view homes within your budget.
Ryan: The other thing is to always get a home inspection where possible. In today’s market, that’s not always easy to do. Submitting an offer with an inspection condition when you’re competing is not attractive to a seller, so we recommend a pre-offer home inspection.
This gives you the benefit of the home inspection before making an offer.
What advice do you give to sellers?
Beth: Periodically we hear people say things like “why do I need a Realtor? Anyone can sell a house in this market”. While that may be true, the role of a real estate agent is so much more than signing a contract or putting a sign on the lawn. With apps like HouseSigma, a realtors role continues to change.
Ryan: From the outside it appears this job is easy, but there is so much behind the scenes work that happens with a listing from staging and photography, to pricing analysis and marketing. You need someone organized with a plan.
Beth: Home staging is not just stuffing things in the garage! And the biggest part is having someone on your side to negotiate through a contract on your behalf. These are big financial and legal decisions that are typically made in hours. And these cannot be taken lightly.
Ryan: Sellers meet with a few real estate agents to get an idea of what services they can offer you, because they’re not all alike.
Beth: Find someone you trust and click with! As Guelph real estate agents who grew up in Guelph, we know the city well.
Why would people work with you?
Beth: I hope it’s because people click with us. Ryan and I both have sales backgrounds and know that pushy salespeople are a thing of the past. Clients want information, professionalism and negotiators. They want someone who can give them our best guess real estate predictions for 2022 based on facts.
Ryan: Yes! Providing insightful, intelligent advice is our goal for both buyers and sellers. This has been our plan for years and our clients have embraced it. Our value is in our results- we’ve sold every home we’ve ever listed!
Beth: We also like to think we’re a bit of fun. This job can be very serious at times, so a little humour goes a long way.
Beth and Ryan, Guelph Realtors are always available to answer any of your questions