FULL THROTTLE
Today is the 100th day since the WHO declared COVID-19 to be a worldwide pandemic. Ontario is now a week into Phase Two of stepping back from the pandemic lockdowns and all indications show we are handling this reasonably well.
On Thursday, The Globe and Mail published that Ontario reported 173 new cases of COVID-19 in the province that day, the fifth day in a row below 200. Numbers like this haven’t been reported since the early days of the pandemic back in March. A collective sigh of relief, given our fear that opening up now could lead to a similar result that we are witnessing from our southern neighbour.
You had probably anticipated the opening and likely jumped at the opportunity to step back out into the world. Judging by the full and newly expanded patios this past week, that’s where many of us made a beeline for.
Me, I spent a glorious hour getting reacquainted with my barber. Dani has cut my hair for the past 30 years – clearly, I’m a creature of habit. We have a well-established routine. A few minutes of catching up early in the appointment and then a silent and meditative time listening to the scissors clipping away. Tuesday’s haircut was an incredible experience as I caught up with Dani and we reflected on our pandemic experiences. I worried about people like Dani who’s businesses were completely shut down over the past 100 days. I’m grateful to see him back and to support his business once again.
While the Guelph real estate was deemed essential and that allowed us to keep the market going, it wasn’t business as usual and despite this past week, I doubt it will ever be like it was a 100 days ago.
Every business has been affected by the pandemic in some way, and has had to make significant changes to how they conduct their business.
Home Group Realty is no different. We’ve spent the past weeks and months planning and anticipating the re-opening. Yes, we’ve been busy installing shields and devising new policies around the office. More importantly, we’ve altered the way we work with our clients. Prior to the pandemic our priorities with clients was helping them achieve their real estate goals and providing them with the best possible experience during their sale or purchase. We’ve now included a health and safety component. Our process now includes a health questionnaire, PPE and strong protocols around the number of people allowed in during a showing. Most brokerages have adopted similar rules.
For some brokerages and agents, the pandemic either doesn’t exist or the seriousness of the health consequences doesn’t seem to register. Last week, one of our team members showed clients through a home and negotiated a deal on the listing only to learn that the homeowner had just tested positive for COVID-19. The information that the homeowner had taken the test nearly a week before the day of the showing was not shared with those who has viewed the home until more than a day after the showing had taken place. The brokerage responsible for that listing essentially shrugged its shoulders and said they would report it to the Public Health Unit, and that was the extent of their “responsibility”. Thankfully our team member and her clients have tested negative for the virus (and they self-quarantined while they were awaiting the test results, which can take up to a week to get back). They followed our buyer protocol – wearing gloves & masks and sanitizing afterwards – and thankfully, it protected them from the virus.
This experience reinforces the importance of taking these new protocols seriously. On one hand, the precautions that our team members and their clients took is what ultimately allowed them to avoid infection. On the other hand, this serves as a reminder that we are all in this together. As local businesses start to reopen and we begin to come out of our homes, we must be extra vigilant with our interactions and completely transparent with those we interact with.
This week we are reporting 73 homes sold in Guelph. There were just over 300 properties sold within Guelph, Cambridge, KW and Centre Wellington. Great numbers!
In Guelph, 38 or 52% of the homes sold went at or above list price. This means there were a lot of properties that had a lot of traffic through them in a few short days. We watched two properties in the Cambridge market sell with 30 and 40+ offers and sales prices $100K plus over list.
I understand this strategy to help boost interest in a home. In both of these cases the homes were deliberately priced well below recent comparable sales. The result was the anticipated frenzy of action and flurry of offers, and yet a sale price not much above the neighbouring sales. The homeowner, I’m sure, loved the end result of selling but I’ve got to wonder how they felt about their home being exposed to so many people. I wonder about all the asymptomatic people out there and the struggle to track and trace community spread of COVID-19.
These strategies to create multiple offers clearly still work even in pandemic conditions. However, given the current lack of inventory and strong demand from buyers, I don’t believe this is the only strategy to get the best value for a home. We’ve been able to market homes successfully both on and off the MLS system, and have put strong measures in place to protect all parties from COVID-19 exposure.
I think it’s vital that if you are a buyer or seller in this market, you and the agent you work with should have a good strategy to help you achieve your real estate goals and stay healthy at the same time. Dropping the price to drive traffic might seem appealing, but allowing 100 people through your family’s home during the pandemic, only to end up with a sale price on par with comparable homes might not be worth the risk to your family’s health. On the same point, buyers take on a similar health risk to view a home that has had dozens of other showings in a short period, only to end up paying dramatically more (or more likely, lose out on the deal entirely). Underpricing to drive up the final sales price was a strategy popular in the past, but with our new awareness brought on by COVID-19, it may no longer be worth the health risk.
Let’s stay safe – practice safe real estate!
THIS WEEK IN THE GUELPH REAL ESTATE MARKET
This week, Guelph saw 73 homes sold. That’s 3 more than the same week last year. 38 of the sales (52%) went at or above list price; significantly higher than the 33% of homes that sold over list in 2019. There are a couple of factors at play here. A number of buyers are likely scrambling to get their purchases in place before the July 1 changes to new CMHC mortgage qualification rules. The weather and a pandemic-delayed Spring Market are also contributing to the higher numbers this week.
The median home sold in Guelph this past week was a 3 bedroom, 2 bath & 1,450 sqft home that sold for $618,988 or $438.47/sqft. That home was on the market for 12 days and sellers achieved 99.96% of their list price.
Compared with the same week in 2019, we reported 70 properties changing hands with 33% or 23 homes selling at or above list. These results were a considerable improvement over 2018. The median home sold last year was 3 beds, 2 baths & 1427 sqft ,and sold for $538,000 or $373.82/sqft. That home took 15 days to sell and sellers achieved 98.56% of their list price.
As you can see, comparing the same week year-over-year would suggest that our market hasn’t missed a beat. Prices are up by 15%, and unit sales are essentially the same year-over-year.
Pretty incredible numbers, and hopefully a good sign of sustained confidence that our economy won’t be hugely affected by the pandemic.
As always we’re watching closely and will keep you educated on market conditions.
Enjoy the weekend.
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