January 14, 2022

2021 Year in Review

The conditions that made for an intense seller’s market in 2020 (dramatically low inventory, a surge of local and out-of-town buyers, and historically low interest rates) continued to fuel the market in 2021. With that increased demand came substantial price increases – the city’s median sale price landed at $720,000 in 2021, a 22% increase over 2020, and a 38% increase over 2019.

While these conditions – low inventory, high demand, and low interest rates – have been intensifying for many years, lifestyle became a significant factor for buyers in spring of 2020. As the functions of our homes expanded inside and out, the demand for detached homes in the city of Guelph jumped up dramatically in 2020. In fact, the number of detached homes listed in 2020 decreased by 14% year-over-year, while the number of home sales increased by 5%, driving the 12-month sales to new listing ratio (a key indicator of market balance) up 15 points to 83%, indicative of a hot seller’s market. With already-prized detached homes in even higher demand, prices followed suit with a 15% year-over-year median sale price increase in 2020. We saw a similar trend in the demand for semi-detached and townhomes in 2020, with an 11 point jump in sales to new listings ratio and a 14% increase in median sale price.

While condo prices increased in step with the market as a whole (median sale price for condos increased 15% in 2020, compared to 16% for all home types), demand for condo apartments remained unchanged as buyers flocked to townhomes, semis and detached homes. As the citywide median sale price rose by another 22% in 2021, we saw a significant jump in demand for condos – the sales to new listings ratio rose from 78% to 85% in Guelph, and we saw this growing demand even more exaggerated in Kitchener and Waterloo. While many buyers’ lifestyle changes crowned detached homes the darling of 2020, the condo’s rise in popularity in 2021 is more likely based on affordability, as opposed to preference.

Looking at market share by property type (the proportion of home sales, comparing detached vs. semi-detached and townhomes vs. condos), we see that detached homes have been historically favoured by buyers, followed by semis & towns, with condo sales making up just 15% of total home sales in the past ten years in Guelph. Taking a closer look at this measure over the past few years, we can see that semis & towns grew their market share in 2020, as buyers balanced what they wanted with what they could afford.

Interestingly, in 2021 we saw condos gain 3% market share year-over-year (and 5% gains over the ten year average) at the expense of detached’s market share. This is in part a reflection of what is available in Guelph (the past ten years has seen a surge in condos built, particularly in the downtown and south end) as well as an indicator of buyer strategy – first-time home buyers are no longer in search of their ‘dream home’, instead, their goal is simply to enter the market.

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2021 YEAR IN REVIEW MARKET REPORT

This report includes:

Annual analysis for entire local region
Sales stats for all Guelph home types
Neighbourhood comparison for Guelph
Township comparisons: Puslinch, Guelph/Eramosa, and Centre Wellington
Sales stats for all home types in Kitchener, Waterloo & Cambridge

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THE PAST WEEK IN THE GUELPH REAL ESTATE MARKET

Take a look at the full key week comparison:

FEATURED PROPERTY

9 Chad Place, Guelph

3+1 BED / 2.5 BATH / 1,916 SQFT

Bright & spacious sidesplit in the heart of West Guelph, with over 2,700 square feet of finished living space. Flowing main floor layout with formal dining and living rooms, bright eat-in kitchen, cozy family room, plus lower level rec room – plenty of space for the whole family! You’ll love the mature 54’ x 105’ lot, tucked into a quiet cul-de-sac, with parks, amenities and highway access just around the corner.

Kelly Hung (226) 500-1588

JP Mooney (226) 500-3588