Spring is finally here after a long, cold winter – the days are getting longer and summer is on the horizon, which we all welcome. With the blooms of trees and the awakening of gardens, we are seeing a substantial increase in the Spring housing inventory, which is a relief from the desperate shortage that we have had over the last year.
The market has certainly been unpredictable in the last month. Overall, buyers seem a bit fatigued. This is amplified by the interest rate increases, higher fuel costs and geopolitical ongoings, among other things. It has resulted in some inventory remaining available on the market for longer, and also requiring some expectation adjustments and patience for sellers. The market is still strong and resilient but significantly more balanced than it was, which as we all know was not sustainable.
It is tricky to navigate pricing and process strategies right now, arguably subject to change on a weekly basis. In some cases, we are seeing properties being sold conditionally, and for the average listing, the infamous “$150,000+ over asking” is being achieved less frequently in the past few weeks. When properties are priced accurately, buyers are feeling cautious, thinking they will have to pay substantially higher – this does cause some confusion.
The average days-on-market (DOM) for a residential property in Guelph for April was 14, as compared to 10 DOM in March, and 7 DOM in February. We must remind ourselves that prior to the insanity that has been the real estate market in the last two years, the average days on market in our area generally always fell around 25 days, depending on the season and type of property.
Guelph’s average sale price has been on an uphill climb for years, with 2021 showing the most significant increase. The average sale price for January 2022 was $970,831; $966,028 in February, $970,414 in March, and $994,465 in April. As mentioned earlier, the amount of inventory plays a huge factor in the market as shown in the graph below. 2022 started off with a 3-year low in number of active listings, and has ramped up to a 3-year high for the month of April. With more housing inventory on the horizon, buyers and sellers should see more of a balanced playing field.
