Real estate in Guelph today continues to change. Guelph Realtors Beth and Ryan Waller discuss three different topics in this short video.
Source: Beth and Ryan Wallers YouTube channel with Guelph real estate videos
Want more insight into the Guelph real estate market? Check out these related stories:
Home selling strategies:
Sellers of homes in Guelph today are reviewing their selling strategies as more inventory hits the market. With few homes available in a strong sellers market, you will find a “holding offers” strategy. (Related: What is holding offers in real estate?)
This strategy allows the market to determine what the true value of a home is. This is because there are far more buyers than sellers. Think of it like an auction.
When more inventory hits the market (like we’re starting to see), this strategy is less effective. Buyers have more choice. There is not as much pressure on each individual home. Although the holding offer strategy may still work, it’s fundamentals of a frenzy are gone. Therefore, sellers may not get the result they want.
A tell tale sign that the market is changing is when holding off strategies begin to fail. In recent weeks we have seen a number of cancelled listings. Then, the sellers re-lists at a higher price. This is an indication that they had a sale price in mind initially. The holding offers auction failed. Now, the seller is just going to list it where they actually want to sell it.
You may wonder, why would someone pay a higher price now if the seller couldn’t get that after holding offers? It’s a good question and demonstrates the effectiveness of frenzied and emotional behaviour of holding offers.
The term “irrevocable” returns
Now that the market is starting to change, we’re seeing sellers list where they actually want to sell. They’re now reviewing offers anytime, but are asking for 24 to 48 hours to reply to any offer. We refer to this as an “irrevocable” in real estate.
Irrevocable simply means non-retractable. The seller is requesting that the buyer submit an offer that is non-retractable, or “live” for 24-48 hours. The seller then knows they have an offer that they can accept at anytime during the live period, but if they wait until hour #49 to reply, it’s expired.
As an example: a buyer wants to put in an offer on a house on Sunday at 4pm. The seller has requested 48hrs irrevocable on the offer. This means they are requesting that the buyer makes their offer valid until 4pm on Tuesday.
Does the buyer have to do this?
No. This is what the seller is asking. You don’t have to give 48hrs. You could give 4 hours. However, your offer had better be worth it or you’re going to seriously annoy the seller. This is where having a strategic Realtor to guide you and is comfortable negotiating comes in handy.
Let’s say you give the 48hrs irrevocable. A seller will likely wait until hour 45 to review it to allow all parties to see it. The seller is hoping there is at least one buyer and that they could potentially still get multiple offers.
Condo’s becoming more important in the market
Condos are getting more and more important in Guelph today for a variety of reasons. Traditionally, Guelph has had few condo developments available. Now, numerous condo developments have appeared. They are well received by both Guelph residents and those coming from area code 437, 416 and 905.
Ryan was on a podcast with Michelle Dyer with the Canadian Condo Institute- Grand River Chapter in late March 2022. (listen here: should be available early April 2022). There was particular interest in statistics of Guelph condos and how condos are gaining market share in Guelph today.
Condos in Guelph today now represent close to 40% of the Guelph real estate market. They were under 20 market share just last summer. Part of this is due to more development of condos, but it’s also because they’re gaining interest from buyers.
Condos offer many amenities and low maintenance options that are very appealing to a wide age range. If you’re a first time buyer, you may enjoy the social aspects of condo. These could include a party room, terrace, proximity to downtown life, pet spas and more. If you’re a downsizer, you may love these same options but also the carefree, lock-your-door-and-leave convenience to travel.
Prices rising substantially in Guelph today
38% of sales in Guelph today are now at or above $1 million, versus just 7% a few years ago. This is incredible for a few reasons. As mentioned, part of the challenge is a lack of supply. Those who are already in the 519 area code have the flexibility to work from home and aren’t moving. Meanwhile, GTA buyers are moving to the ‘burbs to get more space.
All this is a recipe for rising prices and a unique challenge for first time buyers.
At the $1 million dollar mark is the requirement of a 20% downpayment on home sales. If you purchase a home under $1,000,000, you have some flexibility with your lender on the downpayment amount (typically 10-20%).
However, downpayment requirements change to 20% at $1,000,000 or more purchase price. This presents new challenges for buyers, in particular first time buyers.
The likelihood a first time buyer is going to have 20% downpayment (a minimum of $200,000) is quite slim. The likelihood a buyer who already owns a home with equity has 20% down is much greater. This puts first time buyers at a disadvantage. As a result, we’re seeing their parents or family step in with the necessary funds. This is happening as either an early inheritance, or on title/ part owner.
Read about the differences between downpayment vs deposit here.
Questions on the complex real estate market in Guelph today? As experienced Guelph real estate agents we can guide you on the market.