YESTERDAY | Issue 177 Guelph Weekly Sales Report
October 25, 2019 Sales Summary:
Last night (...Yesterday), we held a Brokerage Client Appreciation event at the Bookshelf Cinema Downtown Guelph. As a way of saying "thanks" to our clients and team for their trust and loyalty, we bought out the theatre for two showings of the movie Yesterday - and we were so pleased with the turn out! If you haven't seen this film, it's an imagined story of a world without The Beatles - except for struggling musician Jack Malik, who claims the remembered songs as his own and takes the world by storm. A lovely story, phenomenal performance by Himesh Patel, and of course Danny Boyle's work is always captivating - we would watch this film again and again.
This week in the Guelph real estate market has been interesting. The least expensive home sold for $322,000 and was 894 square feet while the largest home sold was 4,211 sqft and sold for $1,315,000. One day on the market versus 134 days on the market. I think you can imagine which one took only a day to sell!
How did the regular homes perform?
The median home sold last week was a 1,424 sqft 3 bedroom, 2 bath detached home that sold for $554,900 or $357.30 per sqft. That home took 17 days to sell and sellers were able to negotiate 98.51% of their original list price.
41 homes were reported sold in our local market consisting of Guelph, Guelph-Eramosa and Puslinch Townships. That represents a 28% increase over the same week last year where we reported 32 homes sold. Of those 41 homes 12 or 29.27% sold at or above list price which is considerably lower when compared to the 41% of the homes that sold over list price for the same period in 2018.
This past week’s sales illustrate the continued strength in our market. The time it takes to sell (days on market, DOM) has drifted towards 3 weeks reflecting the additional inventory that has accumulated at the higher price points. The higher price points are taking longer to sell and as the median price continues to move up we lose more buyers in the qualifying entry point than we gain in buyers qualifying at higher prices. It makes sense, and reflects on a smaller scale what is occurring in the GTA.
There is risk building in our market. As the median price of homes in the Guelph area continues to rise, we are relying on buyers being able to qualify at the higher price points. Once interest rates start to increase and at some point they will, our market will be at risk of becoming unaffordable to the average home buying family. The result will be a softening in house prices the severity we won’t be able to predict. The question for you as a homebuyer or homeowner will be making sure your financial house is in order and that you can weather any economic storm that comes our way. For buyers, there will be opportunities galore. For some sellers, it could mean ending upside down on a mortgage that is suddenly more than the house is worth; we saw a lot of that in the 90’s during recession. Keep in mind, our market was barely touched during the financial meltdown of 2007.
Thanks for reading.
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