Spotlight: Guelph entering exciting new phase in real estate - GuelphToday | Canada News Media
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Spotlight: Guelph entering exciting new phase in real estate – GuelphToday

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Buying and selling are two of the most constant activity streams that define the real estate industry. However, if you take a closer look at what’s really happening in Guelph, you may be surprised to learn the local real estate market is going through a major transition.

“I think we’re moving into an exciting phase where we’re seeing more drastic renovations and conversions to homes beyond a new kitchen, a new garage or a new roof,” suggests Hudson Smith, head of a team of local realtors at the Hudson Smith Real Estate Group. “We’re talking new footprints, massive additions, and also a considerable number of houses coming down and being rebuilt as infills.”

What does that tell us about the real estate climate in Guelph, a market that has exploded in the past decade? According to Smith, it’s reflective of a change in mindset for buyers who don’t want to compromise when it comes to owning the house or the property of their dreams. 

“It tells us that people are understanding that new build opportunities just don’t exist anymore in the detached large lot category,” he said. “As new subdivisions open up in Guelph, there used to be a couple cul-de-sacs in those subdivision layouts that would offer premium lots with privacy and maybe a little more flexibility in terms of what you could build and what you could add. As intensification has increased and the sprawl has slowed, we’re seeing people more than ever thinking outside the box to achieve their real estate goals.” 

Smith suggests active buyers are focusing their search on more desirable neighbourhoods and paying more to acquire homes or lots that offer all the elements that can’t be changed – things like location, lot size or building footprint. 

“I think buyers are just thinking on a much more creative level,” he said. “They’re not going into homes thinking, ‘oh, it doesn’t have the same space as my house or it doesn’t have this and that.’ People are buying and creating it themselves through renovations. And a lot of people aren’t moving. They’re staying where they are, and completing major renovations.”

Another aspect of this new real estate phase is a willingness from buyers to spend money on a house, only to tear it down and completely rebuild. Smith said that with the spiralling value of real estate, the math actually works depending on the lot and the individual. Purchase prices based on site value have grown higher than ever, and people are willing to pay because it’s exactly where they want to be. 

“You have to consider what’s cheaper,” said Smith. “A drastic renovation to an existing property or taking it to the ground and starting from scratch. The renovation part is probably always cheaper, but you have to ask yourself, ‘am I left with the finished product I want?’  Sometimes with an older home with a lot of character those things can marry together well. But when you do start from scratch, you can add things like ceiling height and exciting features that you just can’t create even with a large reno.”

The changes to the real estate market are also impacting sellers who may have been considering investing in renovations to increase the sale value of their home. Smith suggests such steps may not be necessary. 

“What it means for sellers is, those sellers sitting on nice lots, what their lot is worth is probably outpacing what their house and lot  is worth together. If people are considering doing things before they sell, it’s probably not going to matter anyways because people are trying to buy what’s outside the house more than what’s inside. I’ve personally been part of purchases where people are planning on tearing the house down and the price has still gone up $900,000 to a million dollars for the lot.” 

All this means is that it’s more important than ever to conduct your buying and selling of real estate with the help of an experienced professional who knows the Guelph market. 

Whether you’re looking to buy or sell, contact the Hudson Smith Real Estate Group, a trusted team of local real estate professionals.  Visit them at 824 Gordon Street. Or call 519-821-3600.

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Greater Toronto home sales jump in October after Bank of Canada rate cuts: board

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TORONTO – The Toronto Regional Real Estate Board says home sales in October surged as buyers continued moving off the sidelines amid lower interest rates.

The board said 6,658 homes changed hands last month in the Greater Toronto Area, up 44.4 per cent compared with 4,611 in the same month last year. Sales were up 14 per cent from September on a seasonally adjusted basis.

The average selling price was up 1.1 per cent compared with a year earlier at $1,135,215. The composite benchmark price, meant to represent the typical home, was down 3.3 per cent year-over-year.

“While we are still early in the Bank of Canada’s rate cutting cycle, it definitely does appear that an increasing number of buyers moved off the sidelines and back into the marketplace in October,” said TRREB president Jennifer Pearce in a news release.

“The positive affordability picture brought about by lower borrowing costs and relatively flat home prices prompted this improvement in market activity.”

The Bank of Canada has slashed its key interest rate four times since June, including a half-percentage point cut on Oct. 23. The rate now stands at 3.75 per cent, down from the high of five per cent that deterred many would-be buyers from the housing market.

New listings last month totalled 15,328, up 4.3 per cent from a year earlier.

In the City of Toronto, there were 2,509 sales last month, a 37.6 per cent jump from October 2023. Throughout the rest of the GTA, home sales rose 48.9 per cent to 4,149.

The sales uptick is encouraging, said Cameron Forbes, general manager and broker for Re/Max Realtron Realty Inc., who added the figures for October were stronger than he anticipated.

“I thought they’d be up for sure, but not necessarily that much,” said Forbes.

“Obviously, the 50 basis points was certainly a great move in the right direction. I just thought it would take more to get things going.”

He said it shows confidence in the market is returning faster than expected, especially among existing homeowners looking for a new property.

“The average consumer who’s employed and may have been able to get some increases in their wages over the last little bit to make up some ground with inflation, I think they’re confident, so they’re looking in the market.

“The conditions are nice because you’ve got a little more time, you’ve got more choice, you’ve got fewer other buyers to compete against.”

All property types saw more sales in October compared with a year ago throughout the GTA.

Townhouses led the surge with 56.8 per cent more sales, followed by detached homes at 46.6 per cent and semi-detached homes at 44 per cent. There were 33.4 per cent more condos that changed hands year-over-year.

“Market conditions did tighten in October, but there is still a lot of inventory and therefore choice for homebuyers,” said TRREB chief market analyst Jason Mercer.

“This choice will keep home price growth moderate over the next few months. However, as inventory is absorbed and home construction continues to lag population growth, selling price growth will accelerate, likely as we move through the spring of 2025.”

This report by The Canadian Press was first published Nov. 6, 2024.

The Canadian Press. All rights reserved.

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Homelessness: Tiny home village to open next week in Halifax suburb

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HALIFAX – A village of tiny homes is set to open next month in a Halifax suburb, the latest project by the provincial government to address homelessness.

Located in Lower Sackville, N.S., the tiny home community will house up to 34 people when the first 26 units open Nov. 4.

Another 35 people are scheduled to move in when construction on another 29 units should be complete in December, under a partnership between the province, the Halifax Regional Municipality, United Way Halifax, The Shaw Group and Dexter Construction.

The province invested $9.4 million to build the village and will contribute $935,000 annually for operating costs.

Residents have been chosen from a list of people experiencing homelessness maintained by the Affordable Housing Association of Nova Scotia.

They will pay rent that is tied to their income for a unit that is fully furnished with a private bathroom, shower and a kitchen equipped with a cooktop, small fridge and microwave.

The Atlantic Community Shelters Society will also provide support to residents, ranging from counselling and mental health supports to employment and educational services.

This report by The Canadian Press was first published Oct. 24, 2024.

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Here are some facts about British Columbia’s housing market

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Housing affordability is a key issue in the provincial election campaign in British Columbia, particularly in major centres.

Here are some statistics about housing in B.C. from the Canada Mortgage and Housing Corporation’s 2024 Rental Market Report, issued in January, and the B.C. Real Estate Association’s August 2024 report.

Average residential home price in B.C.: $938,500

Average price in greater Vancouver (2024 year to date): $1,304,438

Average price in greater Victoria (2024 year to date): $979,103

Average price in the Okanagan (2024 year to date): $748,015

Average two-bedroom purpose-built rental in Vancouver: $2,181

Average two-bedroom purpose-built rental in Victoria: $1,839

Average two-bedroom purpose-built rental in Canada: $1,359

Rental vacancy rate in Vancouver: 0.9 per cent

How much more do new renters in Vancouver pay compared with renters who have occupied their home for at least a year: 27 per cent

This report by The Canadian Press was first published Oct. 17, 2024.

The Canadian Press. All rights reserved.

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