It’s no secret that the most Ontario real estate markets have hit new highs this year. In late September, the Financial Post published an article identifying Guelph as one of the 5 fastest-growing markets in Canada. If you add in the full September sales, the average price of a home in Guelph is +14% this year.
It’s worth noting that with Guelph real estate you’d anticipate a huge year of home sales. However, the overall number of sales is consistent with 2019. The big change is, the price buyers are paying is significantly higher than last year due to limited inventory.
A large portion of gains come from a surge in buyers from the GTA who are escaping big city life. With historically low-interest rates and lifestyle changes as a result of COVID-19, together these have all played a major role in the real estate landscape in Guelph.
A look at Guelph real estate’s current performance by area
However, despite citywide growth, not all areas grow at the same pace. As a result, this month we’ll break Guelph neighbourhoods into three geographic areas: Downtown, North of Wellington St and South of Wellington St.
The hottest area in one of Canada’s fastest-growing markets
The grouping of downtown Guelph neighbourhoods identified as Exhibition Park, St Georges Park, The Ward, General Hospital and Downtown proper have underperformed. If you’re looking for a home in downtown Guelph, you’ve notice that there has been a lot less inventory available – 25% less.
Leading the group is St Georges Park at 16% increase and relatively flat number of listings. Buyers here have pushed the prices up in the post-war bungalow portion between Stevenson and Victoria Rd.
Exhibition Park drags with a 3% increase in average price with 25% fewer homes listed. The main contributor is that 2020 has realized a significant drop in homes available over $750K.
North of Wellington St +12%
Made up of West Guelph areas (Onward Willow/ West Acres/ Sugarbush), Victoria North, Riverside Park and the East Guelph neighbourhood of Grange Rd.
Leading the pack is Victoria North, the pocket near the intersection of Victoria/ Woodlawn with an average price increase of 18%. For the first time, this area has experienced multiple homes selling over the $1 million mark. However like other areas, buyers are lining up for the smaller, modest post-war bungalows.
The laggard of the group is the Willow West/ West Acres area, but still an impressive +9%. This area has realized an increase in condo sales at lower prices and less available freehold homes (-14%)
South of Wellington St. +16%
The area south of downtown Guelph is outperforming the rest. Always popular with commuters and still experiencing significant new development, South Guelph already had a few of the highest price neighbourhoods.
Although most neighbourhoods in South Guelph are performing near the City average, the areas of Kortright East and West (south of the University along Gordon St to Arkell) are boasting an incredible 22% average price gain this year.
Part of this gain comes from new, higher-end development in Kortright East. And another part comes from an overall increase in existing high-end home sales. As a result, an incredible 100% increase in homes sold over $750K this year for those two areas.
Kortright Hills, the area by the YMCA that has traditionally been Guelph’s highest average priced neighbourhood. This year it has been dethroned by Kortright East at just over $786,000.
Overall, this is the only grouping that has sold more homes than last year. Led by increases in Kortright West and Kortright Hills, the area by the YMCA.
Beth and Ryan Waller are Guelph REALTORS® with Home Group Realty and supporters of Guelph small business. You can reach them at 519 546 3390 or visit https://bethandryan.ca
Source: 2019- 2020 GDAR data total $ sold year over year change. Neighbourhoods categories as per GDAR identified boundaries. Village by the Arboretum has been excluded due to small sample size.