April 2020 Real Estate statistics
A recent news article in Guelphtoday.com speaks of the furious pace of Guelph Real Estate sales in March 2020. I can assure you that due to the worldwide pandemic, April turned out quite a bit different. There is some good news in the end, as home values have either stayed the same, or increased slightly. In fact, if our economy is up and running by the beginning of summer. Royal Lepage Corporate house price forecast is predicting an increase in house prices at the end of 2020.
Local Sales Volume
Sales volume in April 2020 saw a total of just over $41 million of real estate transactions in the City of Guelph. Broken down, we saw 75 sales, which is a 68% drop from the number of sales 1 year ago in April 2019. We also saw a 57% drop in new listings compared to a year ago.
Some might say this is a crappy market, but other numbers show us it isn’t. It’s just not what we are used to. Then again, nothing is what we are used to right now.
Days on the Market
It took an average of 17 days on the market (DOM) for a home to be sold firm in April 2020. This is down from 21 days in April 2019 and up slightly from March 2020’s 15 days. To put this in perspective, the only time in the last 12 years that houses have sold faster than 15 days on the market, was the spring 2017 frenzy.
Housing Price Index
The Housing Price Index (HPI) is a tool I use quite a bit to understand what is happening to the value of the average home in various categories, neighbourhoods, and communities we serve. For Guelph in April 2020, the HPI for the composite category rose 0.9% over March 2020. So, this is the good news, despite a global pandemic that has caused the brakes to be applied to markets around the world, your real estate investment has likely maintained it’s value. The category that continues to shine is the average apartment condo which rose just over 3%.
I expect continued demand on reduced listings through May and a busier summer than we would normally experience. Demand for homes remains strong and pent up demand coming out of this pandemic should continue to to push the local market forward.