Guelph Market Update for June 2023

Below you will find a Guelph Market Update for June 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 June 2023

In June, the Guelph market was relatively calm. With a volatile market in the last couple of years, it is refreshing to have a month with little change. Prices and the list price ratio to the sale price were flat.

Compared to last month, sales were slightly down and inventory slightly up, which is normal for June. YOY prices are up 6%, which is a very normal year’s appreciation. This June was stronger than last year; however, I do believe we will continue to see volatility in the market for the next year until inflation gets back to the 2% rate.

On June 7th, the BOC ended its pause on interest rates & increased by 25 basis points to 4.75%. On June 9th, Canada’s unemployment rate for May was announced, and it rose to 5.2%. Not a significant amount, but at least it is in the right direction as an indication the economy is slowing. RBC is predicting the June unemployment will be up marginally to 5.3%, but that number won’t be announced this Friday, July 7th. Inflation dropped significantly in May to 3.4%. The number of people quitting their jobs has decreased, and credit card debt and delinquency are up, all indicators showing that the economy is slowing. Analysts seem split on whether the BOC will pause or increase another 25 basis points on July 12th.

In my opinion, the wise thing to do would be to pause. We haven’t seen the effects of people renewing their fixed-rate mortgages at the new rates, which will further slow the economy.

Volatile times can be a great time to upgrade, purchase your first home or buy an investment property. Prices are still down from the peak, but with the shortage of supply, they will likely be back where they were in the near future. People who should not buy in this market are buyers looking to flip a home or that they feel they will want to move in the next year or two. However, if you want to stay in your home for the next five years, it is a great opportunity to buy. Interest rates will come down, not to the ridiculously low pandemic rate but down from where there are. The banks are betting on this, which is why short-term interest rates are lower than long-term rates.

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