Guelph Market Update for May 2024

Below, you will find a Guelph Market Update for May 2024, which will provide you with information on the local real estate market and recent sales activity in specific Guelph neighbourhoods. Don’t hesitate to contact us if you have any questions or if you are ready to move forward with the next step!

Guelph Market Update for May 2024

The Guelph real estate market in May can best be described as stagnant. Will the BOC rate decrease be enough to inject some more life into the market? We are hopeful, but let’s first look at where we are now.

In May, sales increased by 7% over April, a positive sign. However, this was overshadowed by the increase in the number of active listings, indicating a market imbalance. Compared to last May, sales were down 10%, and inventory was up by a staggering 98%. Despite these conditions, prices increased 4% from April but are down from 5% from last year. This suggests a potential shift in the market dynamics.

The BOC on June 5th made a significant move by lowering their interest rates by 25 basis points for the first time in over four years. While the decrease in itself may not seem substantial, its impact is. This is a strong signal that we are now at a turning point, with interest rates likely to trend downwards. According to an April Bank of Montreal survey, 72% of aspiring homeowners are waiting for interest rates to drop before purchasing a home. This could lead to a surge in buyers, with some entering the market now and others waiting for further cuts. Most financial analysts believe the Bank of Canada will make 2 to 3 additional rate cuts this year, potentially opening the floodgates of buyers.

This is likely to drive the prices up. However, if you are expecting the bidding war insanity of 2022, I don’t think we will get there again, at least not in the near future. Most analysts don’t believe interest rates will approach zero, as they did in the pandemic. It is predicted that the BOC rate will end around 3 to 3.5%. Also, with the current state of housing affordability, neither the government nor the BOC will be watching it and will likely implement policies to cool it down.

We are in the sweet spot for buying a home, whether you are an investor or a first-time buyer. There is an inventory on the market, prices are down, interest rates are dropping, and rents are high. This may only be temporary because it is predicted that housing prices will return to their peak prices of 2021 in 2025. The lower-priced market is moving much faster than the over-a-million-dollar, making it a great time for upsizers. Sell your current home first, this will allow you to know exactly the money you have to work with and negotiate hard on the buy.

I am Brad Wylde with GoWylde Real Estate, a group of real estate professionals passionate about helping people grow their wealth through real estate.