Guelph Market Update for October 2022

November 4, 2022 | Guelph Real Estate Market

Guelph Market Update for October 2022

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

Halloween was not the only scary thing that happened in October, the real estate market in Guelph has again changed. After two months of what appeared to be the levelling off of house prices, October stopped the trend. The average housing prices fell by another 5% from September to October. The more shocking number is year over year we are down 14%.

Why so much? If look back to October 2021, we saw a huge jump in the sale price. It was up 11% from September 2021 and it was the first month the average sale price of a detached was over 1 million.   However, this October condominiums did buck the trend with a 7 % increase in average sale price month over month. 

The number of sales are extremely low, with this October being the fewest sales to transpire in over a decade. We will likely see a modest decrease in both prices and sales activity in November and December, which is very normal for this time of year. The high-interest rates have taken their toll on the market. I believe prices will level off at the beginning of 2023 with the possibility of modest increases. Inventory is low, below 1.70 months and with pent-up demand, once the interest rates drop in the 2nd half of 2023, we will see prices going up. 

The bank of Canada raised interest rates for the sixth time this year to 3.75. The next announcement is scheduled for December 7th, and there is speculation that the rate will go up .25 to .50 basis points. Economists believe we are approaching the end of interest hikes and we will be in a recession in early 2023.  Shortly after entering a recession, we will see interest rates start to decline. Homeowners with variable mortgages hang in there, it not going to last long.

First-time buyers, investors and upsizers should seriously consider buying provided they have secure employment. Since the condo market is doing so well, it is the perfect time to sell your condo and purchase a detached home. In the long term, you are better to go variable since in 2023/2024 we should see the rates decline.   

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

 Neighbourhood Statistics

Central

Downtown, Exhibition Park, General Hospital, St. George, St. Patrick’s Ward, Dovercliffe Park/Old University

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West

Onward Willow, Willow West/Sugarbush

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North

Riverside Park, Victoria North

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East

Grange Road, York/Watson Industrial

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Kortright

Kortright East & West, Westview, Kortright Hills

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South

Clairfields/Hanlon Business Park, Pineridge/Westminster

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If you have any questions about the Guelph Market Update for October 2022 feel free to contact The GoWylde Team.

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