Happy Thanksgiving! Hope you had an amazing weekend. Below you will find a market update report which will provide you with information on the local real estate market and recent sales activity in your specific area. Don’t hesitate to contact us if you have any questions or if you are ready to move forward with the next step!
Market Update For September
Where are all the houses? We experienced extremely low inventory in September which made demand even higher. Average days on market dropped this month from 24 to 19 and we have seen tons of ‘bidding wars’. The first week of October has been slow for new listings as well, though that might be due to people holding off until after the long weekend to list their houses. Year to date in Guelph we have seen the average sale price for a detached house go up 13% from 2015. This is unheard of for Guelph.
The government has started to implement rules to attempt to regain control over the housing market. As of October 17th when qualifying for all high-ratio mortgages (putting less than 20% down), the buyer will have to qualify at a greater rate of the Bank of Canada (currently 4.64 percent) opposed to the lender’s contract rate which currently is as low as 2.17 percent. This will impact first-time buyers the hardest since they usually are high ratio mortgages. “…..a hypothetical borrower with $100,000 in annual income and $40,000 to put down on a house today could qualify for a house worth $665,435 with a mortgage at 2.17 per cent, which three lenders are currently offering. However, under the new rules, that same buyer could only qualify to buy a home for $505,762, or 24 percent less than before the rules kick in…” CBC News
The Canada Mortgage and Housing Corporation is predicting for the market to stay strong in 2016 but for demand to slow slightly in 2017. They are not predicting a reduction in housing prices but are expecting a more balanced real estate market. With the government’s continuous intervention, we believe the market will start to cool down and level out over the next year or two. So you may want to sell now when the market is hot!
Neighborhood Statistics
Below you will find a market update report which will provide you with information on the Guelph Market Report and recent sales activity in your specific area. Don’t hesitate to contact us if you have any questions or if you are ready to move forward with the next step!
Central
Downtown, Exhibition Park, General Hospital, St. George, St. Patrick’s Ward, Dovercliff Park/Old University
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West
Onward Willow, Willow West/Sugarbush
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North
Riverside Park, Victoria, Victoria North
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East
Grange Road, St.Gregory’s/Tait, St.Andrew/Southwood,York/Watson Industrial
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Kortright
Kortright East & West, Westview, Kortright Hills
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South
Clairfields/Hanlon Bussiness Park, Pineridge/Westminster
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Village By The Arboretum
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Rural
Guelph Eramosa, Eden Mills, Rural Puslinch, Aberfoyle, Morriston, Rural Centre Wellington
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If you have any questions about the Guelph Market Update for September feel free to contact The GoWylde Team. If you would like a free online home evaluation click here