For the very latest on real estate in Guelph and Wellington County, this comprehensive resource has it all.
The Third Quarter Market Report from Royal LePage Royal City Realty reveals the important prices, stats and trends that buyers and sellers need to know.
This fall saw the real estate market in Wellington County continue to adjust to the ever-changing socioeconomic landscape. Times are uncertain and consumer confidence is lower; some of the factors contributing to this include rising interest rates, persistent inflation and two wars.
“We are seeing nervous buyers in the real estate marketplace. Unsure of the future, they are tightening spending and are loath to purchase a home in this climate,” says Jeff Morley, Broker of Record.
In September, sales retreated just over 18% year-over-year and new listings sprung up almost 40% from the year before, according to the Canadian Real Estate Association (CREA). Sales are 36.2% below the five-year average and 37.6% below the ten-year average. Now that inventory has improved and there are fewer sales, we are finally in a more balanced market and prices have stabilized.
The year-to-date average sale price across all housing categories was $824,670, which is down from $935,288 one year ago. For freehold homes, that number was $931,286 (down 12.67% from this time last year). The average sale price for condominiums was $615,117 (down 8.87% from Q3 2022) and for vacant land it was $666,473 (down 50% in that same time frame).
“According to the Home Price Index (HPI), Wellington County benchmark prices are only up about 2.1% year-over-year. That being said, today’s average home price is still 50% higher than it was in September 2018,” says Morley. “Furthermore, homes are still selling. Well-priced and/or unique homes are selling quickly, and we are still seeing strong demand from the first-time homebuyer market and sometimes even competition for homes.”
Canada’s inflation rate decelerated to 3.8% in September, down from 4 per cent in August. Prices seem to be stabilizing. Dr. Sherry Cooper, Chief Economist for Dominion Lending Centres, says that rate hikes are done, but don’t expect to see rate increases until the middle of next year.
“With further economic stability, we expect consumer confidence to return, and with it, buyers,” says Morley. “Housing inventory remains a long-term problem and will only add pressure to the market in the near future.”
The brokerage features 129 realtors who are dedicated to Wellington County.
Read the latest market updates, visit Royal LePage Royal City Realty or call 519-824-9050. You can also follow Royal City on Facebook and Instagram.