Another regular update on changes in local market due to the Covid-19 pandemic. As I talked about last week, sales volume continues to decline as expected and shows the local Real Estate industry and market is doing what it can to flatten the curve.
Many Realtors like myself look at statistics to help us value and market properties. These stats are the same ones we look at to gauge the individual markets we represent. A community like Guelph can often show different trends from those in Toronto or even Waterloo Region. So, to provide a more intensely local look at Guelph real estate, the information below focuses on Guelph.
At the beginning of each month, the Home Price Index gets updated to reflect sales written in the months previous. This along with some other stats that we have access to gives us an indication of how to price a property relative to what the market is doing. It also allows us to understand where the market might be going in the future.
As I’ve mentioned previously, we came into this with very strong demand and a continuation of low inventory numbers. This trend continued early in March and has helped the average single-family home in Guelph rise by about 1.8%. Apartments, townhouses and single-family homes all saw increases in value in March. April is going to be hard to predict, but I suspect we’ll see modest changes if any in Value.
The statistic that should show the most variance from normal activity throughout this global pandemic is Sales Volume. March 2020 showed a very modest increase in sales activity with only 9 more transactions than February. Comparatively, March 2019 had 55 more transactions than the month prior. I expect April 2020 will show a decline in the number of monthly transactions compared to normal years. This isn’t a bad thing, this means that my colleagues and consumers are doing what we are being asked to do, STAY HOME.
There are many more statistics that I have access to, however, these are the two that I felt would most indicate what is happening right now, and what to expect moving into April. As always, I can be reached at 519-820-6979 or firstname.lastname@example.org. If you would like to chat real estate, statistics or otherwise, please just reach out.