Market Update

What a Difference a Year Makes 

Thinking back on last November, Barack Obama had just been elected president and Canadians found themselves about to be unwilling participants in the global recession. Depending on who you talk to around Guelph, the recession turned out be much ado about nothing or really had some serious economic teeth. Our local real estate market seemed to feel the effects almost as soon as Stephen Harper begrudgingly admitted that not only was Canada's economy headed for recession, it had already been there for months.

Total MLS sales from last November were an astoundingly low 88. That means for the majority of Guelph's 450 Realtors it was a very dry month. The average days on market for MLS sales had increased to 47 and the listing inventory also swelled to 459 homes for sale. According to the law of supply and demand low sales and high inventory mean one thing, a buyers market. Sadly though, buyers were few and far between and what we experienced was a flat, stagnant market, no fun for anyone, especially Realtors. 

November 2009, I'm happy to report that was a whole different storey and even though the market was starting its seasonal wind-down, monthly sales for November were a much stronger 156. That's almost double what they were a year ago. The average days on market decreased to 39 and 14% of MLS sales sold for full price or more. After a few months of strong sales our inventory has hit an all-time low of 275 homes for sale. That's almost half of what it was a year ago. Now according to the law of supply and demand what happens when you have strong sales and low inventory? If you said a seller's market you're right!

Now all we need is some homes to sell. Have a great holiday season and a very merry Christmas!