“How much is my property worth?”
This question has come to your mind at least once. The Guelph real estate market, like other real estate markets around the province, has seen record-breaking increases in terms of sales activity and costs. The southern Ontario town is recording remarkable numbers thanks to record low interest rates, out-of-town homebuyers, and demand that outpaces supply. This begs the question, ‘Is Guelph’s fast rise in the real estate sector driving young families away?’
For a long time, many young families from big cities have fled to the suburbs, small villages, and rural areas in search of lower-cost accommodation. The tables have turned since the coronavirus pandemic. Young adults in these non-metropolitan areas may be leaving for something more inexpensive, but with rapidly increasing property values in neighborhoods, whether large or small, finding inexpensive housing spaces is becoming extremely difficult.
Some have assumed that after the Covid-19 pandemic will pass and families will return to the area, things will fall into place. By then, new homebuyers are weighing their choices and deciding if it is worthwhile to remain in a city with absurdly high real estate rates. Is the upward trend in the Guelph real estate industry exaggerated? Consider that for Guelph, March was another record month, and there is no evidence of scaling down the local economy in the region.
Are The Real Estate Prices In Guelph Driving Residents Out Of The Market?
Residential transactions in February increased 33.2 percent year over year, as per the Guelph & District Association of Realtors, setting a new record set for the month. Home sales have now risen by 23.6 percent year on year in the first two months of 2021, reaching 738 units.
The selling price of homes sold in Guelph increased by 25.4 % to $853,539 in total. Year-to-date, the average price has increased by 27.6% to $825,083. Indeed, for business analysts, listings have become a focal point. In February, new listings increased by 35.7 percent to 620, while current residential listings fell by 26.7 percent to 293. At the end of February, the months of inventory had dropped to 0.6, down from 1.1 months a year earlier.
Is There Upward Mobility In Guelph Home Prices?
The real estate sector is split about whether Ontario’s decision to end the stay-at-home order would raise or lower house costs. Furthermore, the housing industry is debating if there is enough fresh inventory entering the marketplace to enable valuations to halt their upward trend.
Monthly new home building data from the Canada Mortgage and Housing Corporation (CMHC) has been scrutinized by industry analysts for a better view of inventory shifts over the remainder of the year. Housing starts in Guelph fell by nearly 66% year over year in January, to just 17 homes, down from 51 in December.
Households will continue to rise in value until more supply is available. During the month of January, Guelph Today compiled some of the most recent trends in the Guelph real estate market:
- Twelve homes sold for more than $1 million, up 300 percent from the previous year.
- In the $600,000–$750,000 range, 35 percent of homes were purchased, up from 18 percent a year earlier.
- Condominiums accounted for 70% of homes sold in the $500,000–$600,000 bracket, and almost every single-family home in this budget range sold for more than the asking price.
This is all from our side. In this blog, we have shed some light on the increased real estate prices in Guelph. If you are interested in buying a condo, contact RE/MAX.