September 09, 2022

THE AUGUST TEA LEAVES

The dust has settled on the August real estate market here in Guelph and the surrounding region. It wasn’t pretty, but then again, we kind of expected August to be a dog's breakfast.

You can view this months report here: August 2022 Market Report

Overall sales in Guelph are down 9.7% from July and sales prices are down 5% to a median sales price of $655,000. Interestingly, listings were down 25% from July as well. Chock it up to the last hurrah for summer and with all the turmoil in the marketplace a lot of potential sellers and buyers are sitting on the sidelines. We’ve talked a lot about this. Sellers are confused and frustrated about where prices have gone and haven’t reframed their expectations with current conditions.

The bright spot in the region is Cambridge with 235 homes sold last month which is up 25% over the same time last year and up 40% from last month! The Cambridge median sales price is up 3.7% from July.

Waterloo seems to have dropped the most across the board in terms of sales price, units sold and number of new listings. Again, it looks like a lot of bad news.

Here’s the opportunity; the average sale price per squarefoot in Waterloo is $290/sqft. That is significantly lower than Guelph ($364/sqft), Cambridge ($323/sqft) and even Kitchener ($308/sqft). When you dig through the whole report and dig into what the numbers are showing, the market appears to be settling into a balanced condition. The days of the sales to new listings ratio hovering in the 90%+ range are well in our rearview mirror. Again, we don’t see a catastrophic collapse in the market as the median sales price is still above the 2019 levels. Which means that if you bought anytime up to the end of 2019, your home's value is still well above what you would have paid.

The current market conditions are more of the norm and what we should expect vs the double digit increases of the past couple of years.

It will be interesting to see what the impact of the latest Bank of Canada rate increase this week will have. One of our mortgage partners, Dan Johanis at Pekoe Mortgages, has summed up this week’s rate increase and the impact on the housing market. You can watch that here: Bank of Canada rate increase.

Two things to remember:

In chaos there is opportunity, and Real Estate rewards those that play the long game.

Thank you for following.

Enjoy the weekend.

Paul

CHECK IT OUT! WE’VE JUST RELEASED OUR

AUGUST 2022 MARKET REPORT

THIS REPORT CONTAINS

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