GUELPH, ON (April 8, 2020) –– There were 223 residential homes sold through the Multiple Listing System (MLS® System) in the City of Guelph in March, an increase of 16.1 per cent compared to the same month last year.
Total residential sales in March included 121 detached homes (up 31.5 per cent), and 37 condominium apartments (down 2.6 per cent). Sales also included 49 townhouses (down 2 per cent) and 16 semi-detached homes (up 33.3 per cent).
As we enter the second week of the COVID-19 state of emergency declaration, one thing rings true — we are all in this together with the focus of individuals and communities coming together to practice social distancing (physical distancing). As a result we have naturally seen showing activity fallen off from the same period in 2019 as the impact of COVID-19 continues to grow. ShowingTime has provided data that shows weekly showings through the ORTIS system.
Through mid-March, year-over-year showing activity was higher nationwide compared to 2019. The current downturn is indicative of the industry’s response to COVID-19, which is changing daily. This chart daily to reflect the most recent data on showings.
For more information on the impact of COVID-19 on real estate showings across North America, please visit: https://www.showingtime.com/impact-of-coronavirus/
Source: ShowingTime (Impact of COVID-19 to Real Estate Showings in Ontario)
While the MLS® Rules require all listings in the MLS® System to be immediately available for showings – at the moment sellers and Realtors® are being creative, embracing technology, to preview homes, but the consensus at this time is to not show homes until further notice.
Information related to the efforts to mitigate the outbreak of COVID-19 is constantly evolving. To follow the guidelines and precautions set by Canada’s public health authorities, see Health Canada’s website for comprehensive coverage.
The information provided in this feature has been sourced by Adam Stewart, Real Estate Sales Representative with Chestnut Park Realty Southwestern Ontario Ltd. Brokerage. The information has been drawn from sources deemed to be reliable, but the accuracy and completeness of the information is not guaranteed. In providing this information, neither Adam Stewart, nor Chestnut Park Realty Southwestern Ontario Ltd. Brokerage assumes any responsibility or liability.
Adam Stewart is a Real Estate Sales Representative with Chestnut Park Realty Southwestern Ontario Ltd. Brokerage serving Guelph, Kitchener-Waterloo, Cambridge, Wellington County and Southwestern Ontario markets. Adam can be reached at 519-265-2602, online at www.adamstewart.ca, or by email at adam.stewart@chestnutparkwest.com.
As a real estate sales representative with Chestnut Park in Guelph, one of the most important aspects of my service is to tour homes extensively with clients to access their features and benefits, and to identify areas of concern that could impact their way of life both health-wise and financially going forward during their time of ownership.
Naturally, with practicing social distancing we need to find a balance of supporting our clients requests to view properties while maintaining a high-level of social responsibility. Given the exceedingly quick pace to which COVID-19 and necessary social distancing measures are taking place, it is inevitable that the real estate market will have challenges in the short-term.
What we are seeing in today’s environment is certainly a continued level of interest from both buyers and sellers to maintain course given the length of time it takes to start a listing campaign, and of course the life decisions that determine why a buyer or seller is engaging in a real estate transaction. These are extraordinary times and as a society, we are in uncharted territory. It’s critical that we continue to stay calm and work together to stay safe, while supporting each other day-to-day.
One of the measures that is proving to be extremely useful during social distancing that continues to bring buyers and sellers together in an effort to minimize the risk of exposure to COVID-19 is the use of a system called Matterport, which enables prospective buyers to view properties in 3D in the comfort and safety of their own home. In today’s environment, this advantage will allow homeowners to stand out from the competition and provide an immersive experience that's not possible with photos or 360 tours. With a 3D virtual tour, prospective buyers can do their own walk-through a property from anywhere, anytime, generating higher engagement and interest.
Matterport 3D Tours Allow Buyers & Sellers to Come Together in a Socially Responsible way During COVID-19.
Of course this is one tool that we have to help attract qualified buyers by giving viewers the most complete representation of your property, as well by filtering out those properties that may not be the right fit will certainly support our social responsibility with COVID-19.
If you are looking for guidance in your decision to start your listing campaign in the coming weeks, and would like more information about Matterport to support your listing campaign, please feel free to reach out to Adam directly.
Information related to the efforts to mitigate the outbreak of COVID-19 is constantly evolving. To follow the guidelines and precautions set by Canada’s public health authorities, see Health Canada’s website for comprehensive coverage.
The information provided in this feature has been sourced by Adam Stewart, Real Estate Sales Representative with Chestnut Park Realty Southwestern Ontario Ltd. Brokerage. The information has been drawn from sources deemed to be reliable, but the accuracy and completeness of the information is not guaranteed. In providing this information, neither Adam Stewart, nor Chestnut Park Realty Southwestern Ontario Ltd. Brokerage assumes any responsibility or liability.
Adam Stewart is a Real Estate Sales Representative with Chestnut Park Realty Southwestern Ontario Ltd. Brokerage serving Guelph, Kitchener-Waterloo, Cambridge, Wellington County and Southwestern Ontario markets. Adam can be reached at 519-265-2602, online at www.adamstewart.ca, or by email at adam.stewart@chestnutparkwest.com.
Ever since 2016, all insured mortgages must qualify at a minimum rate or, in other words, pass a ‘stress test’. The key difference between an insured mortgage and an uninsured mortgage is the initial amount you’re able to put down on the purchase of a home. If you find yourself able to put down more than 20% of the purchase price immediately, you can carry on without seeking mortgage insurance. If, however, your down payment comes in at under 20% of the total purchase price, the government mandates that the balance of the mortgage must be backed by government-supported insurance.
This policy was introduced four years ago as the Canadian housing market started its current upward climb, in an effort to ensure that buyers – especially younger, first-time home buyers – would be able to continue servicing their mortgage in the event of a climb in interest rates without being forced to default on the loan.
In order to pass the current ‘stress test’, borrowers “must qualify at the greater of the: » Borrower’s Contract Rate, which is the mortgage interest rate agreed to by the lending institution and the borrower; or » Bank of Canada’s five-year Benchmark Posted Mortgage Rate, which is the mode of the posted five-year conventional mortgage rates offered by the six largest banks”.
Starting on April 6th, these rules will change. To pass the stress test, home buyers will now need to qualify at the new benchmark rate, which will be the weekly median five-year fixed insured mortgage rate from mortgage insurance applications, plus 2%.
In real terms, this change boosts purchasing power by an average of 5% for those home buyers who are proceeding with an insured mortgage. Looking at things another way, if you had been pre-approved by your bank for a home purchase of up to $450,000 under the current rules, that limit will be boosted up to $472,500 under the new rules. This gives first time home buyers a little more wiggle room to compete in a hot market where bidding wars are once again becoming the norm.
For more information, please feel free to reach out to Adam directly.
The information provided in this feature has been sourced by Adam Stewart, Real Estate Sales Representative with Chestnut Park Realty Southwestern Ontario Ltd. Brokerage. The information has been drawn from sources deemed to be reliable, but the accuracy and completeness of the information is not guaranteed. In providing this information, neither Adam Stewart, nor Chestnut Park Realty Southwestern Ontario Ltd. Brokerage assumes any responsibility or liability.
Adam Stewart is a Real Estate Sales Representative with Chestnut Park Realty Southwestern Ontario Ltd. Brokerage serving Guelph, Kitchener-Waterloo, Cambridge, Wellington County and Southwestern Ontario markets. Adam can be reached at 519-265-2602, online at www.adamstewart.ca, or by email at adam.stewart@chestnutparkwest.com.
GUELPH, ON (Jan 6, 2020) –– There were 98 residential homes sold through the Multiple Listing System (MLS® System) in the City of Guelph in December 2019, an increase of 15.3 per cent compared to December 2018 – An impressive percentage increase in and of itself.
“Overall, it was an accelerated December for number of home sales in December particularly for single-family detached units.” says Adam Stewart, a Sales Representative with Chestnut Park West in Guelph. Total residential sales in December included 55 detached (up 41 per cent), and 18 condominium units (down 10 per cent). Sales also included 2 semi-detached homes (down 60 per cent) and 23 freehold townhouses (up 9.5 per cent).
Here’s were it gets interesting. The average sale price of all residential properties sold in December increased 14.9 per cent to $550,378 compared to the same month last year. Detached homes sold for an average price of $633,317 an increase of 11 per cent compared to 2018. During this same period, the average sale price for an apartment style condominium was $397,333 for an increase of 21.4 per cent. Townhomes and semis sold for an average of $476,652 (up 3.1 per cent) and $494,800 (up 11.3 per cent) respectively.
The median price of all residential properties sold in December increased 13 per cent to $520,000 and the median price of a single-family detached home during the same period increased 6.3 per cent to $575,000.
“A consistent theme this month, is the lack of supply as a hurdle for anyone who was trying to buy their first home, move-up from their current residence, or downsize. This ongoing state of the market is causing further escalation of home prices,” says Stewart.
The number of months of inventory was .7 in December (down 22.2 per cent), hitting its lowest point of the year (1-2 months supply is historically normal for The City of Guelph). The average days to sell in December was 29 days, compared to 39 days in 2018.
While the majority of residential MLS® System activity is properties for sale, REALTORS® listed 12 properties for lease in the City of Guelph in December, which is on par with 10 lease listings in December of 2018.
GUELPH, ON (December 8, 2019) –– 166 residential properties sold through the Multiple Listing System (MLS® System) in the City of Guelph in November, an increase of 6.4 per cent compared to the same month last year. Home sales in November included 92 single-family detached (up 13.6 per cent), and 33 condominium apartments (up 50 per cent). Sales also included 36 townhouses (down 16.3 per cent) and 5 semi-detached homes (down 50 per cent). “People moving to Guelph for an exceptional quality of life, and the strong economy is continuing to be a significant factor for our local market,” says Adam Stewart with Chestnut Park West. “Prices are increasing because homebuyer demand is exceeding the number of homes on the market—which is expected will continue throughout 2020.”
GUELPH, ON (November 5, 2019) –– 196 residential properties sold in the City of Guelph through the Multiple Listing System (MLS® System) in October, an increase of 16.7 per cent compared to the same month last year. Home sales in October included 114 detached (up 32.6 per cent), and 34 condominium apartments (down 2.9 per cent). Sales also included 38 townhouses (down 2.6 per cent) and 10 semi-detached homes (up 25 per cent). “Home sales were up again last month led by strong sales of detached single family properties,” says Guelph Realtor, Adam Stewart with Chestnut Park Realty Southwestern Ontario Ltd. Brokerage.
Guelph Real Estate Market Report | July 2019 | 227 residential properties sold through the Multiple Listing System (MLS® System) within the City of Guelph in July, representing an increase of 9.1 per cent compared to the same month last year. Guelph home sales in July included 129 detached (up 13.2 per cent), and 45 condominium apartments (up 36.4 per cent). Sales also included 44 townhouses (same as July 2018) and 9 semi-detached homes (down 47.1 per cent).
Thinking of upgrading to a bigger home, but can’t decide if you should sell your current property, or rent it out as an investment property?
As a landlord, there is no question that Guelph and area has a very strong rental market. According to the CMHCs Rental Market Report for the Guelph CMA (2018) the vacancy rate is at a low 1.4 percent with an average rent up 4.1% to $1,109 per month. So if you can afford to, now is a great time to upgrade into something bigger, and keep your current home as an investment property.
Download the CMHC Rental Market Report - Guelph CMA (2018)
“Provided you can afford it, you could make yourself income from the cash flow, and asset appreciation, if you hang onto your home and sell in the next two to three years.” – Adam Stewart, Realtor, Chestnut Park West
If you do decide to rent out your home, you will still have your usual rates to pay, plus ongoing maintenance and repairs. With a rental, hot water systems can fail, and air conditioning systems may need work. So provided that these costs won’t stretch you too thin, I would recommend holding onto your home for another two years or so.
Ideally, the choice to maintain your property and rent it out will still allow you to upgrade and afford the home you want. Sometimes by selling the property you could borrow an extra $100,000-$200,000… so maintaining your home and renting it out may reduce that capacity.
It’s a great time to see what’s around, and speak with your lender to see what you can afford. The lending rate is also nearing historic lows, so it’s an opportune time to get your finances in a position to upgrade, and secure some long-term capital growth.
If you find you can afford to keep your home as an investment property, consider whether you have the time, patience, and desire to manage your rental yourself, or if you’d like to hire a property manager to do it for you.
Finding a reliable tenant that pays rent on time and maintains your property.
Conducting regular routine inspections on the property.
Organizing prompt maintenance and/or repairs on the property.
Ensuring all legal paperwork and documentation are filled out correctly and signed (e.g. tenancy agreements, property condition reports, inspection reports, repair requests, etc.).
If you work full-time and have a family, you may find it difficult to give your tenant and rental the time and commitment it needs - it totally depends on your circumstances, and head space.
AND IF YOU’D LIKE A SECOND OPINION ABOUT WHETHER TO SELL OR RENT YOUR PROPERTY IN THE CURRENT GUELPH MARKET, FEEL FREE TO CALL ADAM AT 519.265.2602. HE’D BE MORE THAN HAPPY TO ANSWER ANY QUESTIONS YOU MAY HAVE.
Guelph Real Estate Market Report | July 2019 | 227 residential properties sold through the Multiple Listing System (MLS® System) within the City of Guelph in July, representing an increase of 9.1 per cent compared to the same month last year. Guelph home sales in July included 129 detached (up 13.2 per cent), and 45 condominium apartments (up 36.4 per cent). Sales also included 44 townhouses (same as July 2018) and 9 semi-detached homes (down 47.1 per cent).
Guelph Real Estate Market Report | July 2019 | 227 residential properties sold through the Multiple Listing System (MLS® System) within the City of Guelph in July, representing an increase of 9.1 per cent compared to the same month last year. Guelph home sales in July included 129 detached (up 13.2 per cent), and 45 condominium apartments (up 36.4 per cent). Sales also included 44 townhouses (same as July 2018) and 9 semi-detached homes (down 47.1 per cent).
VIDEO: Did you know that in the hot real estate market, bully offers could be a real problem? Not just for buyers, but agents, too. In every listing primed for multiple offers, the broker remarks say no offers until seven PM on such and such a date. Then guess what. A bully offer arrives early and the seller wants to consider it. Now the listing agent has to contact every other agent who has booked an appointment to tell them the news. I feel that if the properties prime for multiple offers than that is the way it should be sold.
VIDEO: As many people in the Guelph community know, the Village By The Arboretum is one of the very special places in Guelph to call home, affectionately referred to as the VBA. The Village By The Arboretum has been carefully designed to bring residents together in a healthy and active lifestyle. The community occupies one hundred twelve acres south of the University of Guelph, with over nine hundred residents, and is made up of four hundred and ninety seven single family homes and town homes, eighty one luxury condominium units in two buildings, ninety three luxury mid rise apartment rental suites and two hundred eleven apartments and full service retirement suites in the Village of Arbour Trails.
