Yes, the market is working at unprecedented numbers in prices, days on market and if you try to keep up you could break your neck from it spinning…traditionally Fergus and Elora are a more steady, consistent, markets…..so what effects do the markets outside of Fergus & Elora have? and how can we prepare for the coming wave?
Guelph, Kitchener, Waterloo, and even Halton Markets are now feeling the pressure of GTA buyers wanting to get out of the city. City life isn’t what it use to be, the GTA has been shut down for the better part of this year and more companies are considering a better work life balance for their employees and offering a work from home option. COVID has changed the dynamic of Southern Ontario dramatically, Toronto is becoming less of a job hub, people are reconsidering what is important and what their quality of lifestyle looks like. This has put ENORMOUS pressure on the West of GTA market, it was already flooded, supply and demand battling it out. The other factor is new build homes, as far as Guelph there are little to no detached homes being built that are not starting $900,000. The cost of building went from approximately $250/sqft, to $450/sqft in one year, builders have been slow releasing in Guelph and are finding themselves flooded with people contacting them. Cambridge, Waterloo & Kitchener have been focused on the condo market for the last 5 years, while there are detached homes being built it is again limited. As you go further West we are finding eyes are turning North, to Centre Wellington. There are so many new homes being built, again, with supply and demand issues of their own, but still in abundance and at a comparably fair market price. The market is fair, the prices are generally 50k – 75k less than Guelph, and offer some of the same home town vibes that Guelphites are looking for and GTA buyers are realising are for them.
To sum it up. Cost of living, cost of building, lack of inventory, and the quest for a quieter rural life (but not too rural) are driving Buyers to Fergus and Elora, and taking the prices with them.
Like most markets, it is important to know it intimately, a Seller’s market can still see houses sit and see houses sell for less than market value. A deep understanding of Buyer patterns and market trends is still very important.
So far here are the numbers for the first quarter of the year for Freehold homes in Fergus & Elora, Year To Date:
Average Fergus: Total Sales 115
Sale Price – $761,500
Days On Market – 9
Average Elora: Total Sales 42
Sale Price – $914,360
Days On Market – 19
We have a great listing on Union West on the South Side of the road, when it sells we are going to write a blog comparing last years sales to the first quarter of this year. Sign up for our blog updates, or give us a call, we love to chat CW sales.