Issue 162 | Guelph Weekly Sales Summary
July 12, 2019 Sales Summary
We're past the mid-year point - somehow? - and we've released our 2019 Q2 stats. Get the Housing Market Reports for Guelph, Centre Wellington, and the Tri-Cities below.
Looking Back on Q1
We thought the first quarter of 2019 was a decent quarter, outperforming the previous first quarter in 2018 by a marginal amount. While other markets in the GTA were experiencing significant drops in production and prices, the Guelph market bucked that trend. The Guelph real estate market quietly went about its business and kept moving forward. A significant increase in the number of new listings taken, 721, a huge 48% increase over the last quarter of 2018 and an almost 4% increase over the first quarter of 2018 was an early indicator of where our market was poised to go.
Keeping Balance in Q2
You would have to go back to late 2014 and into 2015 to see months where there were more than 400 listings available for sale in our market.
Many were fearful that a large increase in available homes would flood the market and cause prices to decrease, which was evident in the GTA market. Fortunately, that didn’t happen, as there was still such significant demand for homes in Guelph that the number of homes sold in Q2 jumped by 10% year over year, and the median sales price jumped by 5.9% over the same quarter in Q2 2018. Days on Market remains stable at 15 days, which is still incredibly fast compared to a few years ago.
Keeping Momentum Through 2019
Our expectations for the second half of 2019 are still optimistic. Cautious but optimistic.
We are bumping up against affordability limits for many buyers and we certainly don’t expect any level of government to relax the rules, especially around mortgages and financing. Inventory levels are still growing, good in one sense, yet at some point we do expect demand to slow down somewhat.
We are predicting that this market still has legs and will continue to grow at an annual pace of 5%. The sharp increase in listings over the last quarter will temper any sharp increases in pricing and will work to satisfy the existing demand for homes in Guelph and the surrounding region.
Staying Ahead of the Curve
We further anticipate that this market will remain fast-paced. The immediacy and availability of information about homes for sale will mean that people will continue to react quickly and that homes that show well, are priced well, and given a solid marketing plan will continue to sell quickly. Our expectation is that you can expect a widening gap in the marketplace. Consumers that do their initial homework and preparation - be it buyers getting pre-approved for rock solid financing or sellers doing repairs and staging before going to market - will benefit and see much better success than their less-prepared competitors.
You can expect that even with excellent market conditions continuing, it will become even more critical that you choose the agent and brokerage you work with carefully. The market is quick to weed out the homes that are not up to expectations and the buyers that are unprepared - and it will surely be just as efficient in weeding out agents and brokerages that don’t bring additional value and services to the table.
Here's the numbers for the week ending July 12 2019
A typical July week in the Guelph real estate market. Next to December, July is the quietest month in the real estate world. This month is proving to be typical.
We are reporting 65 homes sold in Guelph, Guelph-Eramosa and Puslinch Townships. That's just 3 more than the same week last year. 31% or 20 out of the 65 homes sold went at or above list price.
The median numbers for the past week look like this:
The home selling was 3 beds, 2 baths, 1,290 sqft and was sold for $530,000 or $386.14/sqft. It took 21 days for sellers to achieve 98.5% of their list price. Overall as we described in the earlier post still strong market conditions exist in the Guelph area.
Compared with the same week in 2018 where we reported 61 homes sold and 39% or 24 out of the 61 homes sold at or above list.
The median home that week was 1304 sqft 3 beds, 2 baths, and sold for $498,000 or $373.92/sqft after 17 days on the market. That reflects that sellers were able to negotiate 98.94% of their list price.
Marginally stronger results last year compared to this year. Two solid weeks, a year apart, to demonstrate a sustained strong local market.
See the Housing Market Reports for the 2nd Quarter of 2019
- click the links below -
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