Guelph Real Estate: Trends & Challenges in a Shifting Market

In April 2024, the Guelph housing market experienced subdued activity, with only 337 homes sold, marking an 8.2% decrease from April 2023. Despite falling 8.1% below the five-year average and 22.4% below the ten-year average for April, year-to-date sales showed a modest 1.9% increase compared to the same period last year, totalling 1,172 units.

Uncertainty loomed regarding the timing of interest rate cuts, impacting sellers' and buyers' behaviour. Sellers actively listed their properties yet didn't see the typical seasonal demand surge. Meanwhile, buyers adopted a cautious approach, waiting to see how the market would unfold.

The MLS® Home Price Index (HPI) indicated a 1.7% decrease in the composite benchmark price from April 2023. Single-family homes experienced a modest 1.8% decline, while townhouse/row units saw a 2.3% increase.

The average home price in April 2024 rose by 1.2% compared to the previous year. Year-to-date average prices increased by 2.1% from the first four months of 2023. Despite a moderate decline in the dollar value of home sales compared to April 2023, new listings surged by 49.8%, with 698 new residential listings in April 2024.

Active residential listings at the end of April 2024 significantly increased by 70.4% compared to April 2023, reaching 811 units—the highest in April in over five years. This surge in listings led to 2.4 months of inventory, up from 1.3 months in April 2023 and surpassing the long-run average of 1.5 months for this time of year.

If you'd like to discuss the real estate market in further detail amidst this uncertain landscape, please feel free to reach out.

Wilson
By Wilson Li March 27, 2025
Guelph is a fantastic city for families, offering plenty of green spaces, trails, and top-notch playgrounds for kids of all ages. Whether you're looking for a place to burn off energy, engage in imaginative play, or simply enjoy a day outside, Guelph has some incredible playgrounds to explore. Here are some of the best playgrounds in the city that your kids (and you!) will love.
February 13, 2025
The Impact of U.S. Steel and Aluminum Tariffs on Ontario's Real Estate Market The recent imposition of a 25% tariff on steel and aluminum imports by the United States is expected to have significant economic repercussions, particularly for Ontario. As a province with a strong reliance on these materials for infrastructure and housing development, the Ontario real estate market will likely experience substantial challenges. The key areas of impact include increased construction costs, economic uncertainty, and affordability concerns. 1. Increased Construction Costs Ontario's construction industry depends heavily on steel and aluminum for building residential and commercial properties. With the new tariffs driving up the cost of these essential materials, developers and homebuilders will face significantly higher expenses. These increased costs are likely to be passed on to homebuyers, leading to higher prices for new homes. This could exacerbate Ontario’s already pressing housing affordability crisis, particularly in major urban centers like Toronto and Ottawa. In addition, rising construction costs may lead to project delays or cancellations, as developers reassess their budgets. This could slow down housing supply growth at a time when demand remains high, further tightening the market and driving up prices for both buyers and renters. 2. Economic Uncertainty and Market Slowdown Ontario’s economy is closely tied to its manufacturing and trade sectors, both of which will be affected by the tariffs. An economic slowdown, caused by increased production costs and potential retaliatory trade measures from Canada, could result in decreased consumer confidence. If businesses struggle with higher costs, job losses may follow, impacting Ontarians' ability to afford homes or qualify for mortgages. The potential downturn could also reduce investment in residential and commercial real estate. Developers, wary of uncertain economic conditions, may hold back on new projects, leading to lower housing availability and a more competitive market for buyers and renters. 3. Interest Rate Considerations To mitigate the negative effects of tariffs on the economy, the Bank of Canada may adjust interest rates. If rates are lowered to stimulate growth, borrowing costs for homebuyers could decrease, which may provide some relief in terms of affordability. However, this could also lead to inflation, which would further drive up construction costs and consumer expenses, negating any benefits from lower interest rates. 4. Consumer Confidence and Housing Demand Economic instability caused by the tariffs could lead to a decline in consumer confidence, resulting in hesitant homebuyers. If people are uncertain about job security and the overall economic outlook, they may delay purchasing homes. A reduction in buyer demand could cool down the real estate market, but it would also pose challenges for sellers and developers who rely on a steady flow of transactions. 5. Government Mitigation Efforts Recognizing the potential damage to the housing sector, the Ontario Home Builders’ Association (OHBA) has urged the provincial government to take steps to counteract the impact of tariffs. Proposed measures include removing the GST on new homes and reducing development fees to offset rising costs. If implemented, these measures could provide some relief for homebuyers and help stabilize the market. Conclusion While the goal of the U.S. tariffs is to protect domestic steel and aluminum industries, the ripple effects on Ontario’s real estate market are likely to be significant. Increased construction costs, potential job losses, and economic uncertainty could put additional pressure on an already expensive housing market. Without government intervention or strategic policy adjustments, these tariffs may contribute to slower housing development, higher prices, and reduced consumer confidence in Ontario’s real estate sector. Industry stakeholders and policymakers will need to work collaboratively to minimize the adverse effects and ensure housing remains accessible for Ontarians.
January 29, 2025
Guelph may be best known for its friendly community vibe and picturesque scenery, but did you know it’s also brimming with incredible international eats? If you’re looking for authentic Asian flavours—whether that’s steaming bowls of pho, fragrant Thai curries, hand-rolled sushi, or savoury Chinese stir-fries—you’ll find plenty to satisfy your cravings in this charming city. Read on to discover five of Guelph’s Top Asian Restaurants!
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