Our Local Market Update

As we head into the month of June the world in general seems to be under immense pressure to open. We see this locally with the opening of salons, retail businesses, service businesses, and larger social gatherings.

You need only go for a short drive and you will see the increased traffic on the roads in addition to the line ups entering almost every business. It is our common ultimate hope that society is able to open while maintaining respect of social distancing and new best practices in order to maintain our well-being.

As we open, the local Real Estate Market is also beginning to flourish from a transactional volume perspective. We are seeing more inventory coming to market as well as a higher volume of sales.

Year over year to date, volume is still down but it is building on a daily basis.

There are several points that are important and unique to our local market…and well worth stressing at this time.

• We have a significant increase in Buyer pressure from the GTA. For example, last week we recorded 43 showings on office listings. Of these, almost half were showings by GTA Realtors with GTA Buyers. Now…thinking about this, it does make sense. The drive to get out of congestion, from small lots, condos, townhomes to a smaller, more spacious community is now more significant than ever. It is now more normal than ever to work from home….and more possible than ever to do so from places like Elora, Fergus and surrounding areas.
• Local homes have been selling with a very high Sale Price/List Price Ratio. Many local homes have been selling in multiple offers….a clear indication of a Seller’s Market.
• The lending process is tightening up. Most lenders are scrutinizing deals more now than ever, including supporting documentation & back ground on all applicants as well as changing lending ratios which make qualification that much tougher. It does seem like Lenders in general are trying to insulate themselves against a future shift in the market.
• There is a general question what the market and economy may look like once the 6 month mortgage deferrals run out and Gov’t assistance comes to an end? We do expect that this will result in some homes coming to market. The question will be whether this is met with significant Buyer demand which we are seeing today?

We have attached some local market stats that will demonstrate some of the points above. 

Below are some interesting comments and conversations that we have had with some clients recently. We thought it would be interesting to share these in the event it may create a conversation. 

With the inability to travel we have seen an increasing demand in cottage properties, likely from families looking for some form of recreation this summer.

We also hear from many pool companies that they are busier than ever…booked out till end of 2021 in some cases.

A local mulch company has sold their entire stock and working into stock for 2021. They simply cannot package enough material to meet their current demand. 

The vacancy rate for long term rentals in Toronto has increased as a result of many short term rental properties being shifted into the long term rental inventory. 

Most Canadian Universities are doing their fall online. University Sports have cancelled their fall seasons. As a result many students who had committed to fall rentals are now going to stay home and not fulfill their rental obligations. Does this mean vacancies and perhaps more investment homes coming to market? 

Plexiglass is selling at almost $600/sheet….whaaaat? 

These sure are some different times. If you feel that you or someone you know may benefit from a short Real Estate conversation, please do not hesitate to reach out!

We understand that every scenario is slightly different and now more than ever, you will want to make certain that you are making the right decision for you.

Regarding the current, local real estate market.

• There is never a wrong time to Buy the right house.
• If you have a dream home in mind…describe this to us and we are happy to search for that perfect home.
• If you are considering Selling….now is a great time to sell!

Reach out now and we can sit down together and formulate a plan that will ensure we meet and exceed your Real Estate goals!     

Hope to chat soon!

** Please see attached Statistics provided by Guelph and District Association of Realtors for May 2020.