January 28, 2022

OUT OF TOWN OPPORTUNITY

We spend a lot of time talking to homeowners and homebuyers. In fact, our Director of Inside Sales, Michelle, spends her days talking to hundreds of people that are on our websites looking for homes and sizing up the market to determine the best time to sell.

So when is the best time to sell a home? The expected answer would be now.

The real answer is not so straightforward.

Market conditions right now are red hot for most sellers. Prolonged demand and record-low inventory levels mean sellers are experiencing the best market to sell in the past 30 years.

So where are the masses of sellers trying to take advantage of these conditions?

The frustration for many would-be home sellers is that they can’t seem to take advantage of this generational opportunity for the exact reason that the opportunity exists: buyer demand. Many want to sell, but where are they going to go? What can they trade up to, or downsize to? The new-build condo market, for many, hasn’t been able to meet those seller’s expectations or needs. It’s a big step to go from a big house with a yard to a box in the sky.

In our 2021 Year In Review Market Report, the median sales price for a detached home in Guelph rose to $850,000 last year, up 25.9% from 2020. Downsizers may receive a seven-figure sale price for their family homes, but the 1,200 sqft bungalows they hope to move to are not far behind in pricing. So what to do?

We took a look at other communities in Ontario to see what $700,000 will buy. We looked at sales in the last 90 days with a maximum sales price of $700K for a detached home, and we found over 50 detached homes!

Check out some of those properties below, and see a full cross section of homes from Kingston to Stratford and St Catharines here. Not exactly the middle of nowhere!

What we do know is that one of the disruptions of the pandemic means more people are working remotely and no longer going into the office. What we thought would be a temporary change has turned into an incredible opportunity for people to pivot and make some major lifestyle changes.

Many have opted for early retirement or changed careers, and ultimately what this means is that people are no longer tied to a particular community or location. The challenge, of course, is getting over the inertia of uprooting and moving to a different community.

Realtor.ca is reporting a dramatic increase in searches since the pandemic – their most recent report shows a 45% increase in traffic in 2020. Home Group Realty team members have been reporting a number of clients outbound to areas like Prince Edward County, Gananoque and other semi-rural areas of Ontario.

There is an opportunity to take advantage of the higher real estate prices in Guelph and find more affordable real estate in communities that are not that far removed from larger urban areas. It will take some effort and research to find these opportunities, but as the above report illustrates, finding these homes is not necessarily unicorn hunting.

Recent technology advancements and the combined databases of 18+ real estate boards that make up the Ontario MLS® system means that we can help initiate a search in other communities for you, and then refer you to trusted Realtors in those communities.

Finding advantageous opportunities often means thinking outside the box. In this case, it might mean thinking outside the local real estate market.

If this sounds like an opportunity to you, we’d love to start a conversation with you.

Enjoy the weekend.

READ THE FULL

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

READ THE FULL REPORT

THE PAST WEEK IN THE GUELPH REAL ESTATE MARKET

Take a look at the full key week comparison:

FEATURED PROPERTY

110 Bristol Street, Guelph

3 BED / 3 BATH / 1,410 SQFT

Charming & eclectic 1.5 storey detached home in Guelph’s historic Downtown. This property features a bright main residence with 2 bedrooms and 2 full bathrooms, including a massive loft-style primary suite with a flexible space for working from home, fitness and more, with a balcony overlooking the backyard. Fully renovated, the main floor boasts a bright living room, chic kitchen and light-filled dining room that steps out to the back deck. Next door, a main floor 1 bedroom apartment has its own entrance and would make a great in-law suite, mortgage helper, or even a home office! The massive 78’ x 98’ lot hosts a detached garage and mature trees, and the location is tough to beat! With shopping & dining in the downtown just steps away, and highway access in seconds, you’ll have everything you need right at your fingertips!

Jeff Moisan (519) 760-3227

Beth Brombal (519) 820-7129