2017, the final frontier, these are the crazy days of the Guelph housing market, our mission is in strange new worlds. Seeking out new forms and new price points, boldly going where no Ontario Housing market has gone before. It’s a little like that folks, we are on the “Starship Enterprise” exploring the uncharted areas of the Real Estate Market. As much fun as it is, the other pros and I agree, it isn’t going anywhere but up. Milton, Mississauga still with soaring prices and us with the run off, we are here lost in space together. What does it mean for the home buyer of 2017? Honestly, I don’t think anyone knows, I know from my experience with clients that patience and persistence has paid off, and I am hoping that theme continues in 2017. I worked with quite a variety of buyers and sellers last year, and talked to hundreds of people about Guelph Real Estate. The conversations always came around to the same theme, “this aint your Mom & Dads real estate market”. What I mean by that is, there may have been a way to do the deals before (and I mean as close as a year ago) but now, and about every 3 months, this industry is changing its flow, always on an incline, but agents, the powers that be and the clients are consistently changing how they approach the business. How do you keep up? …wink wink nudge nudge ….hire an agent with a sparkling personality and a good head on her shoulders, who works full time in the business…lots of tattoos with dark hair……shameless plug wink wink nudge nudge….. I have asked around, and after talking with my peers at length and from what I have experienced in the industry, I believe that the conversation with buyers and sellers needs to come to managing expectations.
I can’t count how many times last year I spoke with new home buyers who had a sparkling pre-approval for 300 thousand or even 400 thousand dollars……. And after shopping and finding that a 299 thousand listing is actually a 375 thousand sell… they felt like their pre-approval was no good!!! WHAT?!?! You are approved for that much money and it isn’t enough?!?! You are doing so well at life!!!! Realistically, it might not be enough…..depending on what you are looking for and how you want to go about it. That is it right there, manage your expectations.
Me: “Great guys, I am excited to help….what are we looking for here?”
Client: “Well, we need a detached bungalow, with updated everything, and basement apartment potential, preferably legal apartment…..under 350 thousand….”
Me:…..slowly closes note book ……. “in Guelph?”
It is the truth of the matter, gone are the days, of the “fixer upper starter”. Fixer uppers are flying into 50 thousand plus over asking, if not for the house then just for the lots.
What do we do? Where do we go? Cambridge is an option; Fergus prices are back to being less than Guelph. We have to talk about what you can get for the price you can afford in Guelph, it is the only way that we can keep our heads and money in the game. Do the research, read the stats, be an active buyer ready to see any property on a dime. You may want detached but your budget when you started looking six months ago, to now, says that you get a town house on the north end, you have to make moves.
Predictions for the future…..Here is what I see happening, I see parents selling their houses and doubling up with the kids to help, you can get a hell of a mortgage with a 4-person income. I see couples buying together with an agreement to sell down the road and split the money. I see parents starting “Home Deposit” savings for their kids along with their education funds. I have talked at length with families where the siblings are planning on buying together and have worked out a deal for resale. New home builds accommodate for basement apartment fittings, and we all know that we can use that extra $1000/ month you can get from a tenant/ sibling / parent / cousin goes a long way when you are competing in offers. We need to have real conversations about our expectations about buying in Guelph, we need to think outside of the box. I predict in the future you will see less of the traditional “pair up, buy a house, settle down, have kids, buy bigger house” that lifestyle is too vanilla for this swirly sundae of a market. The value in Guelph real estate is there, you can’t argue it, and it isn’t going anywhere, you have to get in it. What financial investment do you have that you can see the return grow right before your eyes, it is so real you can almost cuddle it for warmth at night. Lets get you in there, any way we can, in a realistic, out of the box way if need be.
Next blog we will chat about being a realistic seller, for now I’m winded. Thanks for reading.