Christmas Shopping | Issue 184 Guelph Weekly Sales Report
Less than two weeks away from the big day and you would not be mistaken to say the focus is on getting the gifts under the tree and the menu planned. Talk to most agents and you’ll hear that this is the quietest time of the year for real estate sales. Without a doubt it is: 31 homes were reported sold in Guelph and the surrounding townships last week which is 8 more than the same week last year. Definitely slow compared to double and triple that number in the spring months.
A lot of agents are advising their clients to wait for the holiday season to end before listing or seriously looking to buy. Inventory levels are down and so is the competition.
I’ve been a contrarian on several fronts over the years and selling around major holidays or vacation season has been an area where I go the opposite of the herd. Some of my best sales months in my career have been in December and August. While everyone else follows the mantra of "that’s the market and that’s the way it’s always been done", I have in fact encouraged clients to step up their searches during the slow times. The casual buyers and the “unmotivated” sellers fade into the background, which leaves the playing field open for motivated buyers and sellers.
Looking at this from the buyer side, the evidence shows that buyers have more negotiating room in these periods. The sales to list price ratio, essentially how close sellers get to their list price, tells me how much negotiating went on. This year, sellers have averaged 99% of their original list price. Virtually no room to negotiate.
A home listed at $500,000 this year meant sellers were achieving 99% or $495,000 as a sale price. That same home in December 2018 sold for 97.8% or $489,000. Looking at the average from November of this year, 98.2%, means sellers were getting $491,000 of the $500K they were asking. Savings of $4,000 to $6,000 is significant, and more than covers legals fees and probably covers most of the cost of a mover. Would I tromp through a snowy backyard if I knew I was going to be able to save $5,000 on my purchase? Absolutely.
We posted a blog earlier this week about selling your home privately. You can catch up with it here 9 Step Guide To Selling Your Home By Yourself
Now you might ask why we would explain to you how to sell your home without a Realtor. The information in this article is legitimate, and if you choose to go it your own, following this guide will guarantee to put you on a more level playing field with the market. It won’t be for everyone but it will elevate the education level of the marketplace.
Our buyer clients benefit from similar knowledge sharing. We don’t follow the herd, and will take the time to find the opportunities in the market for our clients. Buying and selling real estate is not a commodity business. Too many brokerages and realtors try to compete on a commodity basis, fighting over who can do it cheaper or quicker without consideration for the ultimate goal of the consumer.
At Home Group Realty, our goal is to help educate consumers about the real estate journey. Whether selling or buying, we believe that a well educated consumer is going to have a better real estate experience because they know what to expect and understand the process. We’ll help them achieve the best outcome for their situation. There is no one size fits all. Your real estate journey is as unique as you are and you deserve to work with a brokerage and team of real estate professionals that will treat you that way.
THIS WEEK IN THE GUELPH REAL ESTATE MARKET
The median home sold was 3 beds and 2 baths, 1,431 square foot and sold for $565,000 or $398.94 per square foot. This home needed 22 days to sell and the homeowner was able to negotiate 98.25% of the original list price. 31 homes sold this past week, with 26% (or 8) selling at or above list price.
Compared to the same week in 2018 when we reported 23 homes sold, 30% or 7 sold at or above list at a median sales price of $520,000 or $329.52 per square foot. Homes that week took 43 days to sell and home owners achieved 97.53% of their list price.
Given the froth in the Guelph real estate market throughout the rest of the year, these “glacial” results spell a lot of opportunity for savvy buyers and sellers.
Next week, we’ll have a fun and lighthearted review of 2019 before we take a 2 week break over the holidays.
Thanks for reading.
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