SHELTER

I hope your Thanksgiving celebration was enjoyable despite the restrictions.  

Post-Thanksgiving is the time I usually start reviewing my past year and planning what the next year is going to look like, business-wise and personally.  

Usually the process is pretty straightforward. What worked? Why did it, and what can we do to add to the processes that did work.  Equally important, what didn’t work and how can we fix it or ditch it? 

This year that review is going to feel very different.

By all accounts the local real estate market has had a phenomenal year even with April and May having virtually no activity.  How do we account for this?  Is it a fluke, or did we all just misread how important ‘home’ really is to people.  How do we project what 2021 is going to be like with a lingering pandemic and economic uncertainty. 

There are a lot more questions we need to analyze in order to set our plans.

We’re not the only ones either.  Look at the home improvement side of the economy: no one would have predicted the spike in home renovations.  If anything, manufacturers and retailers should have cut back, as would be expected during a “recessionary” event.

Besides the ‘realization’ that hand hygiene, face masks and social distancing DO help stop the spread of disease, there is one other massive lesson this pandemic has made clear:

Don’t make assumptions!  

It’s an old lesson, but one worth reviewing again.

We all assumed the economy, the housing market, and everything else would crater when the pandemic took hold.  Thankfully, swift government action and the determination of the general population has helped keep most of the economy afloat.  Of course, we’re not out of the woods yet – and there are certainly segments of the economy that have been harder hit than others, most notably the restaurant industry.  What I am seeing is that people were quick to prioritize their lives around shelter, their homes, and how they’ll use that space to ensure they make it through this epoch.

I’m seeing real estate circling back to its primary purpose: a shelter, a safe haven for families.  Lately, it seems, the investment side of the equation has been too dominant. 

We’ve talked to many of our Home Group clients and the response has been very clear that people are making decisions primarily based on having the best possible ‘shelter’ for their families. Whether that means a better place to work remotely from, or a larger backyard for the kids to safely play and grow, the priority now is a comfortable and safe place to live in. 

While no-one wants to lose money on a real estate purchase, the “investment” decision is no longer the primary driver that it has been for the past few years.

I look at this past holiday, and despite not being able to have everyone around the table, it sure made me grateful for the people I was able to share the holiday with, safely within my own bubble and four walls.  

Who knows what Christmas will look like, and yet, I know our home will still be filled with family even if they are remote.  Our home will help us make the holidays and our family feel normal.  

THE PAST WEEK IN THE GUELPH REAL ESTATE MARKET

This week 50 homes sold in the Guelph & Area real estate market, just shy of the 52 homes sold the same week in 2019. Normally, we would see a slow down in the summer and then a resurgence of buyers to the market come fall, but this year has been a bit different. Besides the brief pause we experienced back in March and April, our local markets have been staying steady (and by steady, we mean very busy) throughout the course of this year. While this past week was one of few that did not surpass 2019 in terms of sales numbers, the houses that sold are a different story.

The median home this past week was 3 bedrooms, 2 bathrooms, and 1,465 sqft. This home sold for $632,450 – that’s $422/sqft – in 13 days. The median sale-price-to-list-price ratio was 101.09%, and 36 of these 50 homes sold at or above list price.

The same week last year, the median home sold was similar – 3 beds, 2 baths, and 1,591 sqft. While slightly larger, this home sold for $596450 (that’s $360/sqft!). The home sold in 19 days, for 99.04% of the original list price. Last year, only 16 of the 52 holds sold went at or above list price.

This final statistic exemplifies our competitive market: 31% of homes sold this week last year went at or above list price, while a whopping 72% sold at or above asking this past week!

Thanks for reading & enjoy the weekend.

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FEATURED PROPERTY:

158 Dudhope Avenue

CAMBRIDGE, ON

3 BED / 1.5 BATH / 1,250 SQ FT

This great semi-detached home is surprisingly spacious! With 3 bedrooms, 2 updated bathrooms, and the additional light-filled sunroom, this East Galt home is the perfect place for a small family. Plus, the large backyard is fully fenced and private – perfect for backyard barbecues, a swing set, pets… or all three!

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