Guelph Market Update for January 2025

Below, you will find a Guelph Market Update for January 2025, 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 January 2025

The Numbers

The Guelph real estate market gained strong traction in the final quarter of 2024, driven by increased buyer activity resulting in more offers on homes. December 2024 stood out, with an impressive 80% increase in the number of homes sold compared to December 2023, signaling renewed confidence in the market. While sales dipped 28% from November to December, this is typical for the season, as December is historically one of the quieter months.

By property type, detached homes remained steady, with December’s average sale price at $890,000, showing no change year over year. Townhouses performed well, with a modest 2% price increase to an average of $687,000. Condos, however, continued to face challenges, with a 7% price drop to $540,000. These struggles stem from an oversupply caused by recent condo construction, combined with high interest rates and condo fees, which have made condos less appealing to first-time buyers and investors.

Interest Rates

Interest rates were the defining trend of 2024. The year began with the Bank of Canada’s overnight rate at 5%, but five rate cuts brought it down to 3.25% by December. While a 25-basis-point cut is likely on January 29, robust job numbers in December may encourage the Bank to hold steady. Meanwhile, fixed mortgage rates are unlikely to decrease further due to rising bond rates, but variable rates are trending lower and are now nearing, or even below, fixed rates, which is more consistent with historical norms.

Opportunities

Listing early in 2025 could be advantageous for sellers. Spring brings more competition, which may challenge your property’s visibility. Buyers, on the other hand, have favourable conditions with lower rates, good inventory, and motivated sellers. A balanced market like this provides the flexibility to upsize or downsize with less stress. Selling first ensures clarity in your budget, and the large supply of homes makes finding a new home easier.

If you’re wondering what to do in this market, I’m Brad Wylde with GoWylde Real Estate, and we’re passionate about helping people build wealth through real estate. Let’s navigate this together!

Questions? Reach out directly!