The March Numbers Conversation - Issue 355

The March numbers are in and on most fronts the picture is not pretty, except for one area.

Yup, March was a slow month. Sales were down by almost 29% from March of last year, which was down by

28% from 2021. Talk about slow. 186 homes sold in Guelph in March compared to 361 during March of 2021 in

the middle of Covid.

Compound the slow sales with equally slow growth in the number of new listings that came out in March

down 37% from 2022 which was 7% lower than 2021. Lower sales, lower number of new listings and you can

see that the month went by like a slow shuffle through the mud.

The reality is that this is creating opportunities for people.

Interest rates have stabilized with the long term fixed rate mortgages actually moving lower means buyers are

now able to create and stabilize their home budgets and start making plans to come off the sidelines.

Inventory levels have essentially doubled over the past year. This means more homes to look at in some price

ranges and more time for buyers to make educated and smart decisions about their next real estate move.

Note I said some price ranges. The entry level and move up sectors of the market are still incredibly hot with

demand still outstripping supply. The low number of new listings coming into the market shows that there are

many current homeowners in that middle part of the market refusing to make a move and free up the entry

level homes that are in high demand.

This is also one of the reasons why the median sales price hasn’t come down as much as most experts

expected. The median sales price in March for homes in Guelph was down 20% from 2022 and yet remains

3% higher than 2021 despite the glacial pace of the current market.

Entry level buyers are still faced with having to compete and fight to get a deal. What’s missing is the insane

prices over list. Patience and sanity are ruling this market.

If I was a seller considering a move up in the market, this is an incredible time to be looking!

Interest rates are stable and 5 year money is at the long term average. Prices in the upper middle market

have pulled back and there is considerably less competition for quality homes.

The chart above is based upon a typical detached home over $800K. In 2021 and 2022 , you were expected to pay 110% and 114% respectively above list price in order to own a home. This March you were able to negotiate the sales price down by 1.2%, which on a million dollar home is $10,000 ( that’ll cover some of your closing costs). Check out the chart below showing the median sales prices for detached homes listed over $800K.

Guelph actually is the most affordable market in the region when this segment of the market is viewed in

isolation.

The opportunities are there for those that are open to seeing them. That’s not to say that it’s going to be easy.

There still isn’t enough inventory to satisfy everyone and as a buyer in the upper market you still are not

completely in the driver’s seat . This market is settling into a slow steady state that is going to be around for a

while.

As Realtors, we’re going to have to roll up our sleeves and get digging to find the deals for our clients.

We’ll keep educating our clients and showing them the opportunities.

Reach out to us and book a consultation. You just might be surprised at what we can do together.

Book your consultation today: https://calendly.com/homegrouprealty

PS: On April 25th from 7:00-8:30 PM, our brokerage is hosting Become an Empowered Homeowner.

Want to learn more about investment properties, using real estate professionals to help you find the ideal properties and opportunities? Sign up here to learn from the pros and how to empower your future.

Thanks for reading.

Have a great long weekend.

Paul