As headlines are constantly changing, buyers and sellers are rightfully unclear as to what’s happening. Are Guelph real estate listings increasing? Decreasing? Is it a good time to sell? Buy?

This article was produced for GuelphToday with the following video:

Should I sell my house in Guelph?

It’s a question we get almost daily. However, despite what your Guelph realtor tells you- there is no “right answer”.  The answer really depends on your specific situation.

As an example, let’s say you want to sell a house before you buy a new one. You may want to sell now, as the market is slowly declining. That way you know exactly how much money you have for your new home.

If you have the luxury of even more time or could work from home, you may be able to get a better deal in a more rural market.

If you are buying and selling at one time, the timing is less sensitive. This is because you’re buying and selling in the same type of market. You may get less for your current home, but you will also get a better deal on a newer home.

It’s worth noting that some price brackets are selling quicker than others

When we look at the real estate market, we typically just lump all houses for sale in Guelph in one bucket. But the reality is that entry level homes move differently than luxury homes.

Here’s a look at the available listings in different price brackets in Guelph this year. You’ll see that if you were selling a house between $750K- $1M in July or August, you were competing with a lot of other houses in the same price range. This likely resulted in lower overall prices.

As we move into late October, you’ll notice that we’re experiencing a decline in homes between $400- $750K. So, if you’re considering selling a home in this bracket, it may be a good time as there is less competition.

Guelph real estate listings by price bracket

Inventory is not rising as many headlines would have you believe. In fact, in Guelph real estate listings declined significantly since June. In fact, we’re now at 219 available homes versus 320 in July- a 33% DECREASE in available Guelph real estate listings.

And, in some cases we are even back to multiple offer scenarios although in most cases we have an irrevocable. Read about what is an irrevocable in real estate here

Are conditions back?

They sure are. Financing, inspection and sale of property (SOP) conditions in real estate are back. The major ones include:

Financing condition

This is typically 5 business days and allows the buyer time to ensure they can afford the house they are buying and are satisfied with the terms of the mortgage.

This is especially important if you were pre-approved at lower interest rates. You’ll need to get re-qualified if the rates have increased.

The other concern many buyers have today is a home appraisal. This means that the buyers bank has to agree that the house is worth what the buyer paid for it.

In the event that the house is appraised for less than market value, the buyer needs to make up this difference before the lender will provide a mortgage. For more information on this, read our blog on home appraisals

Home inspection condition

Just like financing, this is typically a 5 business day condition. This allows the buyer time to hire a professional home inspector. The home inspection takes roughly 3 hours depending on the complexity, condition and size of the home and costs roughly $600.

Home inspections are a guarantee of a home since the inspector can’t get behind walls. However it will give you a good idea of things that you may not consider.

Although a home inspection is not designed to be a negotiation tool per se, it can be used to highlight unknown deficiencies, resulting in a lower price.

As an example, we recently helped a young family buy a century home. Although the listing agent and realtor claimed there was no knob and tube wiring, the home inspector found evidence to the contrary.

This resulted in a $6000 cost to the seller to remove the knob and tube (and some galvanized steel plumbing) before our buyers would agree to purchase the home. This is why it’s important to use a Realtor who understands older homes

Sale of property condition

This condition would have been an outrageous request in the spring when houses were selling quickly. However in todays uncertain environment, they’re back.

This condition means that the buyer will purchase their new home under the condition that they are able to sell their home. The period is usually 30 days.

The risk to the seller in this case, is that their home is they conditionally sold for 30 days while the buyers start the process of selling their home. If the buyer can’t sell their home and decide to take it off the market, then the sellers deal falls apart.

Unless there is a certain circumstance where a seller has excess time, we always advise our sellers to try and avoid this clause. It can wreck all selling momentum as traffic to their home dies off substainally. There are tools that can be used, such as an escape clause- if you have questions about this, give us a call.

How long does it take for Guelph real estate listings to sell in Guelph?

In the past few months, we’ve been averaging 3- 4 weeks for homes to sell. As mentioned earlier, depending on the type of home, condition and price range, it could take more or less time.

Here is a graph that shows the average continuous days on market in Guelph. Sometimes a Guelph Realtor will cancel a listing and re-list to freshen up the listing, but this captures all days of a specific listing.

Guelph houses for sale days on market (DOM)

You’ll see the number of days on market is now over 40 days. This is compared to less than 10 days in early 2022.

In early 2022, the Guelph real estate listings strategy was different. Holding offers meant that a house could be listed and then sold on offer day- usually a 7 day period. This would explain the low number.

In todays market, homes are conditional again. And, the days on market clock continues to run while conditional.

As an example, let’s say a house is on the market for 5 days and then sells conditionally on day 5 with a home inspection condition for 5 business days. The actual days on market would be

  • 5 days on market
  • 9 conditional days (two weekends plus five business days).
  • total of 14 days on market

With the resurgence of sale of property conditions that may be 30 days in length, there is no surprise that we’re back to an average of 40 days on market.

For more information on the Guelph real estate market, get in touch with Beth and Ryan Waller. They run a Real Estate Team in Guelph with Keller Williams Home Group Realty. We’re happy to meet up at a Guelph coffee shop to discuss!