Guelph Market Update for July 2023

Below you will find a Guelph Market Update for July 2023, 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 July 2023

Was July’s slowdown a reaction to the latest rate hike, or was it a normal summer slowdown? The number of homes sold in July was down 22% from June, while the active inventory was up 8%.

New listings were down 13%, the increase in inventory was due to the lack of sales and not more listings coming on the market. We also saw the average sale price drop 5% from June. In the last ten years, 8 out of 10 times, we have seen a drop in sale prices in July. However, over that time period, the average drop in sale price has been 1%. This year’s higher percentage can be mainly attributed to the BOC’s last rate increase.

August typically will be a flat market, and in September, we usually see prices and activity pick up. Guelph isn’t the only place slowing down; it is widespread, including The Tri-cities and Toronto.

The employment rate for July was up to 5.5% from June 5.4%. According to the Office of the Superintendent of Bankruptcy, business insolvencies are 37% higher than last year and the highest since 2014. If the Consumer Price Index for July, released Aug 15th, 2023, is down, hopefully, that will be enough data for BOC to pause the interest rate hikes on September 15th.

Right now is a very good opportunity in the condominium market. During covid, this market was the hardest hit, and it continues to struggle more than detached and townhouses. In July, the condo market prices dipped 13% from June. This is a fantastic opportunity for downsizer to sell their larger family homes and downsize to a condominium.

First-time buyer, if you can afford to buy, prices are going to go up over the next year, so get in as soon as you can. There is a real shortage of housing, and it isn’t going to get better. Shortages mean prices will eventually go up. Despite the shortage of inventory, if you are selling and buying in this market, it is wise to sell first and purchase in the same market.

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