Guelph Market Update for June 2018

Market Update

Here is what happened in the Guelph Real Estate Market in June!

There were 216 sales this month, which is down 11% from the 243 sales that we had last June. The number of sales remained relatively flat from May with just a small 3% drop.

There are currently 421 active listings on the market. This is up 10% from last year. However, it is down 4% from last month. For purchasers, there is still a decent amount of inventory to choose from. Especially in the detached market over $600,000.

If we look at the total number of new listings, we had 313 in June, which is down 10% from last year and down 24% from last month. However, it is normal to see fewer listings come onto the market as we approach the summer months.

The average sale price in Guelph is $414,305, which is still down 2% from June of last year when the average sale price was $525,399. However, this is because we are currently experiencing a lot more condos and smaller townhouses sell this year than last June which is pulling down the average sale price. If you look at each specific housing type it tells a different story.

Let’s dive into more detail – detached houses had an average sale price of $610,000 which is up 6% from last June.

Attached houses are up 6% from last June with an average sale price of $442,794. Apartment style condos had an average sale price of $344,621 which is up 11% from last June.

As you can see year over year we are now into positive numbers in all houses types. Detached and attached houses are still slightly down from our peak prices of 2017 but condo apartments have already past last years April peak by 3%.

Houses are selling on average for 99.2% of the list price. Which means when you are pricing your listing you want to have a very small buffer for negotiations. Of the houses that are selling, 33% went to multiple offers and sold over asking. 90% of these houses are listed under $600,000. This demonstrates the dramatic difference in the market conditions in the lower price points compared to higher priced homes.

If we look at months of inventory, which is our supply and demand, we have 1.95 months of inventory. This has remained flat from last month. Anything under 5 months is considered a seller’s market so right now overall, we are still in a seller market in Guelph.

You have to take this number with a grain of salt because the market can fluctuate quite dramatically depending on what price point you are in. Right now, under $600,000, we are in a strong seller’s market with anywhere from 1 month of inventory on the market (this is why we are experiencing most of the multiple offer situations in this price point). Then between $600,000-$1,000,000, there are 3.5 months of inventory. This is still considered a seller’s market but closer to balanced. In the $1,000,000+ market, there are currently 10 months of inventory which is in a Buyers market. This has dramatically changed from May where there were only 5 months of inventory in the $1,000,000+ market.

Overall, we are in a much more stable market then we were in at this time last year where prices were decreasing. The significant difference is that inventory is higher and the number of sales are down. For buyers, this is a great time to jump back into the market. There is more selection, you can negotiate and put in conditions. Prices have been consistently going up but at a much more stable rate and we are almost back up to our peak prices of last year. Toronto reported substantial year over year increases in June and from talking to several agents in that marketplace things seem to be heating up. The Guelph market typically follows Toronto with a bit of a delay, so this is a good indication that we will continue to see growth. For sellers, if you are under $600,000 you are in a strong seller market. If you are listed over $600,000 there is more competition on the market, so it is important that you are priced better than other homes on the market or that your house shows much better than the competition. Houses are still selling for great prices but you can’t expect to sell your house in 2 weeks. Its common for a detached house to take 30-60+ days to sell so you need to be more patient. It is more important than ever that you are using a skilled realtor to sell your home. Buyers are coming in and negotiating and if your agent doesn’t have strong negotiation and sales skills you could be leaving thousands of dollars on the table.