Below you will find a market update report which will provide you with information on the local real estate market and recent sales activity in your specific area. Don’t hesitate to contact us if you have any questions or if you are ready to move forward with the next step!
Guelph Eramosa & CW Market Update for March
The first quarter of the year has past & this is what is going on the Fergus/Elora & surrounding area real estate market.
There were 99 sales this quarter which are down 23% from the 129 sales that we had in the first quarter of 2017. However, this is a much less substantial decrease then we have experienced in the Guelph and Tri-cities which are all down over 30% in sales.
There are currently 122 active listings on the market. This is up 39% from last year although we had abnormally low inventory in the first quarter of 2017. Mainly because almost every house was sold within a week. This is still a normal amount of inventory for us to have.
We had 186 new listings which are down 3% from the 192 new listings we saw last year which is not a substantial change.
The average sale price for the first quarter was $645,601 which is up 19% from last year where we had an average sale price of $544,577. If we dive into more detail: detached houses had an average sale price of $735,791 which is up 26% from last year. Attached houses are up 17% from last year with an average sale price of $414,500. Lastly, condo-apartments had an average sale price of 303,083 which is up 11% from last year. This is an amazing amount of appreciation across all housing categories and very interesting since the prices in Guelph and the tri-cities are either down or flat year over year. The Fergus, Elora and Guelph/Eramosa area have performed exceptionally well.
Right now, houses are selling on average for 98.4% of asking price which is not quite as high as the 100% that we saw last year but still a very good list to sale price ratio. Of the houses that are selling 24% are going to multiple offers and selling over asking. Of those houses, 68% of them are listed under $500,000 which means that our lower end market is quite a bit more active.
If we look at months of inventory which is our supply and demand, we have 1.23 months of inventory which means that we are in a strong seller’s market. Yes, it is up from last year where we had less than 1 month of inventory on the market but anything under 5 months of inventory is considered a seller’s market therefore overall we are still in a strong seller’s market. Now if we look at months of inventory over different price ranges this gives us a better idea of what is going on in the market. Right now houses listed under $750,000 have 1-2 month of inventory on the market which means it is a very hot seller’s market in that price point. Between $750,000 -$1,000,000 there are 4 months of inventory meaning it is still a seller’s market but closer to balanced. Once you go over $1,000,000 there are 8 months of inventory which means that the luxury market right now is very much a buyers market.
In this market, I see a few great opportunities. If you are looking to upsize to a larger and more expensive home this is a great time to do it. You can sell your lower priced home in a very hot price bracket and buy a more expensive home in a less competitive market with more selection. Also if you are thinking about moving from the Fergus/Elora area to Guelph or the Tri-Cities this is a great time to do this as your market has performed better than these cities & you have not experienced the same kind of correction that other areas did.
There has been a lot of media about the correction that we had last year after the foreign buyer’s tax and the potential impact of the new mortgage rules that came into play in January of this year but looking at the numbers we have still had a great first quarter.
All and all houses in the Fergus/Elora and surrounding areas have done very well. House prices are up substantially, houses are selling for close to list price and there is low inventory. One thing to take into consideration is that sales are still down 23% which means that not every house is selling this year. When bringing your home to market this year it is very important that you have the correct pricing, your home shows its best, you have a strong marketing plan and most importantly you are working with a skilled realtor who has the ability to get the job done. If you have any questions about the Fergus/Elora or surrounding area real estate market please contact us!
When you are thinking about upsizing or downsizing it is always challenging to determine whether you should buy first or sell first. It really depends on the market conditions. In a crazy strong seller’s market like last winter, you were better to buy first and then sell after because it was harder to purchase a home than to sell. However, in the current market where inventory is increasing and the number of sales is down, you are safer to sell first with a longer closing. This will allow you time to buy after you have sold and you will know exactly how much money you have to spend. In this market, not every house is selling and you do not want to run the risk of buying a house firm and not being able to sell your home in time. This could result in you having to carry 2 homes or undersell your current home.
I know that a lot of people are concerned that if they sell first and are not able to find a house in time they will be homeless. If you are looking for a unique house then this may be a legitimate concern but if you are not, 3 months is plenty of time to find a house. You have to look at the worst case scenario of both methods; if you buy first and are not in a financial situation to be able to carry both houses then this could leave you in a financial disaster vs if you sell first and can not find a house then you might have to do a temporary move. Not necessarily ideal but still much less devastating.
If you have any questions about your specific situation and if you should buy or sell first please contact us or comment below and we are happy to help you!