August 12, 2022

Cutting Through the Hype

Last week we published our monthly market update for the month of July. I didn’t include much in terms of commentary on the report as I wanted to let the numbers do the talking for a change.

Some of the comments we received were interesting, people were expecting the numbers to reflect what they’ve been hearing and seeing in social and mainstream media. It’s not all doom and gloom and in fact, spoiler alert here, we’re actually in what we would call a balanced market.

Buying or selling a home is not a decision to be made lightly, and for those consumers that align themselves with a trusted professional, they will find it a lot easier to identify the hype and the agendas of others involved in this market. Issue 319 Incite or Inform?

Looking at the numbers in Guelph and the surrounding region, the market has slowed and come back from the high water mark of the spring. In Guelph, for all home types, the median sales price in July was down 8.4% from the previous month. Taken as a single data point, that is a pretty significant number. Balance that with the fact that the median July sales price in Guelph at $710,000 was still 4.4% higher than July of 2021. Sales numbers were down in both cases significantly from June and the previous July.

Interest rates increased significantly over the past few months and that most certainly has had a large impact on the sales numbers. In a typical market, July and August are some of the slowest sales months in the year. People’s focus in those months are on vacation and enjoying the short Ontario summer season.

Context.

The market is shifting and pulling back, no question about it. However, if your sole source of information was based upon the headlines, you would be justified in stocking up on gold, non-perishable goods and be heading for the bunker.

Take another look at the numbers we published last week. There are opportunities hidden in this shifting market. I’ve been around shifting markets long enough to know that for those buyers and sellers looking to make a move we’ll be able to find common ground.

Filter out the hyperbole, the market is still moving and properties are still being bought and sold.

Enjoy the weekend.

PS: I spend some time with Dan Johanis from Pekoe Mortgages on his podcast Spilling the Tea https://youtu.be/NYKyzxrTTxo. We went down the rabbit hole on market conditions. Check it out.

CHECK IT OUT! WE’VE JUST RELEASED OUR

JULY/Q2 2022 MARKET REPORT

THIS REPORT CONTAINS

Q2 summary & analysis for Guelph
Neighbourhood breakdown for Guelph
Full home type breakdowns for Guelph, Kitchener, Waterloo & Cambridge