Summer has officially wrapped up, but it looks like the sunny weather is going to stick around for a bit. If you had kids going back to school this year, we hope the transition went smoothly. If not, we hope you had a great summer too! We look forward to catching up with you. Back to business, there have been some major shifts in the market and big changes in the experience of buying or selling a home.
Despite what you may see in the news about real estate, we’re doing pretty good here in Guelph, Wellington County, and the surrounding areas. We all saw an extreme and unsustainable spike in sale prices at the beginning of the year. Now, we are seeing things cool off, with prices similar to where they were last autumn. Despite market fluctuations, we all know that sometimes life happens and you just have to move! We are here to help you make the best decisions based on your circumstances.
In the last six months, a handful of factors have changed the experience of buying or selling a home. Firstly, rising interest rates will certainly have an effect on you as a buyer. At the start of the year, 5-year fixed mortgage rates were around 2%, and as of mid-September they have increased to 4-5%. This may decrease your purchasing power as a buyer. On the flip side, the number of active homes on the market in Guelph has drastically increased from 76 in January, to 245 in April, to 336 in July. With more houses on the market there is less buyer competition, which is good news if you are working with us to purchase. There is now more room for negotiation on things like price, conditions, and terms for the sale than there has been in previous months. All things considered, it is no surprise that the average sale price is lower. If you are thinking about selling your home and wondering what all of this means for you, give us a ring – it’s all relative.
Real estate tends to be a hot topic and you might run into some confusing information. As experts in our local market, we are always happy to hear from you and answer any questions you may have. Wishing you and your families all the best this fall!