It’s no secret that most Ontario real estate markets have hit new highs this year, including Guelph. Even the federal government stepped in on the campaign trail with new promises to support first time home buyers and make housing more affordable across the country.
“The challenge is supply,” says Ryan Waller, Sales Representative with Home Group Realty. “You can provide incentives for buyers, but that is not addressing the problem. It’s purely an unhealthy supply and demand imbalance that needs to be addressed with more houses for purchase and rental. Until then, prices will rise and become less affordable.”
A surge in buyers from the GTA who are escaping big city life, historically low-interest rates and lifestyle changes as a result of COVID-19 have all played a major role in the real estate landscape in Guelph. The average days that a house on the market in Guelph this year is only ten.
Detached houses are quickly becoming out of reach for many. As a result, the townhouse and condo segments are becoming increasingly competitive.
However, despite citywide growth, not all areas grow at the same pace and so this month we’ll break Guelph neighbourhoods into three geographic areas to give a better idea of performance in the City: Downtown, North of Wellington St and South of Wellington St.
Downtown +19%
The grouping of downtown Guelph neighbourhoods: Exhibition Park, St Georges Park, The Ward, General Hospital and Downtown proper have under performed the market year to date. This is due to an increase of available properties for sale in the downtown core- led by a 50% increase in condo sales alone.
Leading the group is Exhibition Park with a 30% average price increase and flat number of listings available. This doesn’t mean that each home in Exhibition Park has increased 30% in value, but instead implies that the less expensive homes are selling at higher prices and therefore bringing up the average.
Good examples of this would be the condo development at 240 London Rd, along with side streets with post war bungalows such as Hamel, Westmount and Summit.
The Ward remains the most affordable of the downtown neighbourhoods on average price, as it has a variety of housing options. From the Metalworks and Biltmore condos, to smaller detached homes and semis, the Ward has a lot to offer.
South of Wellington St. +20%
Increasingly popular with commuters and still developing, South Guelph has become even less affordable for many, with a 357% increase in homes selling over $1million vs 2020.
The big story here is Pineridge/ Westminster Woods with a 31% average price increase vs 2020. This neighbourhood has exploded with new listings and there has been almost a 100% increase in dollars spent on homes in this neighbourhood this year vs 2020.
“Pineridge/ Westminster has a lot going for it: family friendly, trails and parks and access to amenities,” says Home Group Realty Sale Representative Beth Waller.
Kortright Hills, the area by the YMCA that has traditionally been Guelph’s highest average priced neighbourhood, continues its stronghold here with an average price of $866,000 year to date.
North of Wellington St +28%
This grouping is made up of West Guelph areas (Onward Willow/ West Acres/ Sugarbush), Victoria North, Riverside Park and the East Guelph neighbourhood of Grange Rd.
Leading the pack is the Grange Rd area, the area east of Victoria Rd with + 31% increase in average price. With a changing market due to COVID, this area experienced a surge in GTA buyers who wanted ease to commute into work without actually living in the more expensive parts of the GTA. Those who live on streets with townhomes saw the biggest rise, as these options were more affordable for first time buyers.
Part of the challenge in this part of town was fewer options for buyers. There were only 67 more homes for sale here than 2020. Most of those came from Willow West with a 28% increase in listings on streets like Rhonda, Willow and Marksam. Outside of Willow West, available listings were significantly lagging the city average.
This area is also home to 3 of the top 5 most affordable neighbourhoods in Guelph: Onward Willow, Riverside Park and Willow West/ Sugarbush. Those looking to get into the housing market can find many condo or townhouse options.
Beth and Ryan Waller are Guelph REALTORS® with Home Group Realty. You can reach them at 226 780 0202 or visit bethandryan.ca.
