Spotlight: What does your money buy you in the Guelph housing market?

It might be the moment that Guelph home buyers have been waiting for.

In August, less than 15% of the homes sold in Guelph were purchased over the original asking price, the lowest month percentage in 2018 following a previously slow month for sellers in July.

Are buyers starting to get some of the power back as the market slowly cools with the changing season?

The numbers are suggesting, yes. Which isn’t the best news for sellers. The days of holding offers to maximize sale price are slowly disappearing for all but low supply neighbourhoods and unique buys.

So, what do buyers and sellers need to know about the current housing Market in Guelph?

Firstly, home buyers should be aware of current interest rates and government regulations placed on borrowers when it comes to securing a mortgage.

Cortney Hansen, RBC Mobile Mortgage Specialist in Guelph is noticing pattern shifts in Guelph mortgages. “Over the past 7 months, we’ve noticed an increase in the number of first-time homebuyers, but lesser dollar amounts being borrowed. This can be associated directly with rising interest rates and the new government regulations implemented in January 2018. These guidelines require lenders to qualify prospective buyers at either the bank of Canada benchmark rate (5.34% as of Sept 5/18) or their agreed upon contract rate plus 2%, whichever is greater.”

Secondly, keep an eye on the developing condo market in Guelph. With an influx of condo development in Guelph, the $350K-and-under price market has gained significant ground over the past two years. Condos are a popular choice for first-time buyers and downsizers due to the low maintenance required. However, it is important to always understand condo fees and any additional costs, as they vary by development.

Now, let’s look at the numbers. Regardless if you’re new to the market or not, the figures below give a clearer picture about Guelph home price brackets, providing insight into size ranges, competitive details and some neighbourhood options for each.

 

Under $350,000

Percentage of Guelph houses in 2018 sold in this price bracket: 16%

Average square footage in this price range: 935

Average selling price as a % of original asking price: 97.5%

Neighbourhoods with the most sales in this range: Onward Willow/ Dovercliffe

Between $350-$500K

Percentage of Guelph houses sold in this price bracket, 2018: 41%

Average square footage in this price range: 1,228

Average selling price as a % of the original asking price: 99.8%

Neighbourhood with the most sales in this range: Grange Rd

Between $500-$600K

Percentage of Guelph houses sold in this price bracket, 2018: 20%

Average square footage in this price range: 1,913

Average selling price as a % of the original asking price: 100.3%

Neighbourhood with the most sales in this range: Grange Rd

It’s worth noting that if you are looking for a home in the $500-$600K mark, this price bracket is the most competitive in 2018, whereas you’re more likely to find a deal if you’re shopping in the $350K or less price.

Between $600-$750K

Percentage of Guelph houses sold in this price bracket, 2018: 15%

Average square footage in this price range: 1,803

Average selling price as a % of the original asking price: 99.8%

Neighbourhoods with the most sales in this neighbourhood: Pineridge

Over $750K

Percentage of Guelph houses sold in this price bracket, 2018: 8%

Average square footage in this price range: 2,444

Average selling price as a % of the original asking price: 98.7%

Neighbourhood with the most sales in this range: Old University

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Ryan Waller is a Sales Representative at Home Group Realty. He can be reached at 519 546 3390 or email [email protected]. More information at www.bethandryan.ca

Cortney Hansen, Mobile Mortgage Specialist RBC Royal Bank 519-841-4349 [email protected]

Photography courtesy of Sarah Miller, 2312 Photography. Email [email protected]

Source: Matrix data YTD Jan- July 2018., GDAR 18 identified City of Guelph neighbourhoods.