February 27, 2020
After Ontario’s housing market saw dampened activity in the second half of 2018. Existing home sales are experiencing a partial recovery so far in 2019. Buyers are re-entering the market and a robust spring market for Guelph and area is underway. Spring market conditions usually include homes attracting multiple offers and selling for full price or more. I’m encountering multiple offer scenarios on most of the properties that I’m putting offers on. While this isn’t nearly at the level that we experienced in 2016, when we saw homes selling for $100K over asking price, sales for $20K to $40K over asking are not uncommon.
In this type of market buyers need to be prepared to make the best offer they can in order to win the day. While offering the most money is a good way to ensure a successful bid, offers with no conditions are also popular with sellers. It’s also becoming common for buyers to write a letter about their family, sometimes with pictures, to the sellers in order to make their offer seem more personal. Offers that combine an attracting price, no conditions and a personal touch have a good chance of success.
Guelph had 193 sales in March which was up just slightly from March of last year 185. The average sale price for a home in Guelph last month was $516,075. In March 2018 the average sale price was $510,878. Properties were selling quickly as the average days on market for MLS sales was 15 days. That’s not much different from last year when it was 13 days. The average price per square foot for Guelph resale homes was $367 per square foot. Sellers 99.2% of their asking price on average in March and 41% of homes sold for full price or more.
At the beginning of April there was 1.5 months worth of inventory for sale based on current sales levels. This isn’t a lot of homes for a busy spring market. Hopefully the warmer weather will bring forth more homes to market.
Buyers: the key to success in a spring market is preparation. Have your financing approved. If you want to do a home inspection, use the time that you’re waiting for offers to be presented. Good offers with no conditions will get the seller’s attention.
Sellers: your key to success is preparing your home for sale. Making sure your home is attractive to buyers will get you half way there. The right pricing and marketing will get you the rest of the way.
Dean Manton is Guelph and area’s real estate expert. Put Dean’s experience and market knowledge to work for you! #my21styear