Guelph Market Update for June 2022

Below you will find a Guelph Market Update for June 2022 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 June 2022

The Guelph market has continued to slow as most real estate markets have across Canada. The average sale price of a detached house dropped below the million-dollar amount for the first time since September 2021. Sales have dropped 9% from last month, and at the same time, inventory has increased 7%. The slow down has caused the average sale price to drop by 7% from last month.

Some economists call for doom and gloom—two months of negative growth in the GDP constituents a recession. By this definition, the USA is in a recession, and what happens in the USA will typically occur in Canada. If we go into recession, the relevant questions are whether it is going to be deep and long.

What impact will it have on the real estate market? We still have a housing supply issue; Canada’s population growth is the highest among the G7 nations, and our new construction is not keeping up with demand. Additionally, prominent investment companies such as Blackstone Inc are looking to purchase large quantities of single-family homes as rental properties because rents are skyrocketing due to a lack of rentals. It may be a bumpy road in real estate the next while, but I don’t see it lasting long, and there are some real opportunities right now.

The BOC Canada just released that they are doing a 1% increase to their rates which is the highest increase we’ve had in Canada since 1998. It is going to be interesting to see how our market reacts to this. If we do go into a recession we may actually see the BOC start reversing these rate increases to stimulate the market some more.

It is the best time upsizer to move in a declining price market. The gap between what they are selling and buying will be the smallest. It is a much nicer market for all people buying and selling; you can sell first and know what money you have before purchasing. There is still a housing shortage, so when you come out of the other side of this messy market, we will likely see prices rise rapidly again.

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