3 Key Numbers for Winning at Offer Presentations | Issue 195 Guelph Weekly Sales Report
3 Key Numbers for Winning at Offer Presentations
It will be interesting to see how COVID-19 impacts the Guelph real estate market in the coming weeks. On one hand I’m worried that this virus will trigger a significant world wide recession. China, the epicentre of the outbreak, is still trying to get their factories and production back up and running. We’re seeing a lot of disruption in the supply chain that could significantly affect economies of countries that have not been hard hit by the virus. I’m concerned that we are not aware of how far this has progressed already. On the other hand, this could be a blessing in disguise for our real estate market by slowing it down and letting some of the steam out.
The pull back in the stock market has stung investors but has also provided some benefit to homebuyers with a significant reduction in mortgage rates. Coupled with the pending reductions in the mortgage stress test, it has now become more affordable for buyers in today’s real estate market.
So the “interesting” part of this – where will the Guelph real estate market settle with all of this information? Based upon last week’s numbers the market is still charging forward with a 14% increase in the number of sales this past week over 2019.
So what has this got to do with winning on offer night?
Most buyers understand the market is more active, prices are up and they are competing on many properties. Knowing what is driving the market will help you make decisions on offer night and could put you on the winning side of the table.
The number of new listings coming into the market will help you decide to compete or wait to see what else will be coming on in the next few weeks. February in Guelph saw an 11% increase in new listings for single family homes and a 21% increase in the number of townhouses and condo listings. Year to date, single family listings are running 1% higher this year. Towns/condos on the other hand are ahead by 6.5%.
We’ve been writing about how the number of home sales has jumped considerably. In fact in the single family segment that number in February was up 57.4% and 32.3 % for the year to date. Townhomes and condos are up 27.3% for February and 25.5% for the year to date. Huge increases that tell me the market has not reacted to the COVID-19 risk, yet.
Median Sales Price
Single family homes in February jumped 14.2% to $680,000 and are up 11.1% to $650,000 year today. Condos/towns bumped up 18.1% to $462,700 in February and are up 12.7% year to date to $451,875.
Ignoring these numbers when you are ready to put an offer together, or worse, working with an agent that hasn’t followed these numbers, will put you in peril of not winning on offer night or worse paying too much for your home. What we know is that year to date, single family sellers are receiving 100.4% of their list price and townhouse/condo sellers are out-performing and receiving 101.5% of their list price. Clearly the townhouse/condo market segment has become more popular and competitive. Successful buyers in this market segment understand where they need to bid in order to win.
The advantage for buyers in this market is knowledge. The better understanding your REALTOR® and you have of the market dynamics will determine your success or not on offer night and take luck out of the equation.
The REALTORS® with Home Group Realty study and understand the numbers and the factors that can influence the local real estate market. Your real estate journey doesn’t have to be a frustrating experience. Start your journey with a knowledgeable guide.
THIS WEEK IN THE GUELPH REAL ESTATE MARKET:
57 homes sold in Guelph and the surrounding townships, a 14% increase over the 50 homes sold the same week in 2019. 35/57 or 61.4% of homes selling last week went at or above list price. More than double the number selling above list last year!
The median home:
3 bedrooms, 2 baths, 1,344 square feet and sold for $575,100 or $406.02/sqft. The median home took 10 days to sell and homeowners received 100.02% of their list price.
Compared to the same week in 2019 when the median home of 1,411 sqft sold for $525,000 or $369.54/sqft and took 24 days to sell, sellers receiving 98.61% of their list price.
Sellers have taken note of these market conditions and as expected we’ve seen more listings hitting the market early this year. We expect this trend to continue for the coming weeks.
Stay tuned, this ride is about to get more interesting in the following weeks. You can count on us to continue to watch closely and provide you with detailed analysis and recommendations.
Enjoy the weekend.
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