November 2nd, 2017
October turned out to be busier than September with 179 sales in Guelph compared to 141 and the average sale price was up as wel,l with the 3 month moving average climbing back to $479,432 – up a respectable 10.63% from October 2016. We have had a roller-coaster market in between; with a range in the 3 month moving average from $435,985 to $545,460.
As of January 1st, 2018 new rules kick- in for mortgage financing, in a nut shell, everyone will have to qualify for financing at the greater of the Bank of Canada’s five-year benchmark rate (currently 4.99%), or their contract mortgage rate plus 2% points. Last year, the change only impacted buyers who were putting less than 20% down. Now it impacts not just would-be buyers, but also those who already own their homes and moving up, or are renewing a mortgage with a different financial institution. There will likely be a surge in demand in the next couple weeks to buy, before the new qualification rules kick in.
There are currently 254 active listings in Guelph – a little over a months supply and anything less than 2-3 months supply means it is still very much a Sellers market. Further evidence of the strong market – the average sale price in October was 99.07% of the average asking price, and 30.7% of the sales were still at or over the asking price.
Please do not hesitate to call or email me if you have any real estate questions or need an opinion of value – I always look forward to hearing from you.