When it comes to buying a home in Guelph, the West end is an often-overlooked area of the city.
Occasionally I hear people that are foreign to the West claim they would never want to live here. However, if you ask any resident of the West end of Guelph, most often they will claim that they wouldn’t want to live anywhere else! It’s not like there are a lack of vital amenities, green space, community resources, or opportunities to live a comfortable and enjoyable life. In fact, I would say if you look at the amenities and infrastructure the West currently has in place, it is far better poised for future growth, enjoyment and accessibility to everyday items than some of the more popular areas of the city. For whatever reason though, the West end of Guelph seems to be seen as a secondary choice.
Despite this subtle trend of West end avoidance, I believe what this means for the sophisticated buyer is they can purchase a better home for considerably less, in a market that is undervalued, underrated, yet highly admired by those who already live here!
In this edition of the West-End Number Crunching, I wanted to focus solely on the semi-detached product the West end has to offer.
Semi-detached homes are always a great option if a fully detached home is just outside of your reach. They are convenient, affordable, and highly sought-after by first-time homebuyers and downsizers, which means they will likely always be in demand in the grand scheme of things, keeping inline with the natural forces of the real estate market, of course.
Let’s take a look at some of the data and see how well this type of home in the West-end has performed over the last 5 years:
You can see between 2011 and 2013 the average sales price and average price per square foot figures were a little spotty. It seemed every year the average sales price was up, the average price per square foot was down, or vice versa. An interesting trend to say the least!
In 2014 things started to shift for the better. For the next 2 consecutive years the average year-to-year sales price increase hovered around the 10% mark and the average year-to-year price per square foot increase hovered around the 8% mark. Could this have anything to do with the fact that the West end’s flagship, landmark, big box store, Costco, opened their doors in July of 2014? It would only make sense to me! More amenities generally equates to higher property values and if you ask anyone in the West end what they love about it, more often than not the convenience of having just this one store within a few minutes drive will almost always come up on their list.
With all of the vacant commercial land in and around Costco, not to mention plans for the new Lowes hardware store setting up shop right next door, how do you think house prices will be affected in the next few years to come? Only time will tell!
For the savvy buyer that is willing consider all of their options, and keep in mind that future amenities generally equate to future value increases, the West end of Guelph has many promising opportunities indeed!
Until next time, Happy Investing!