This is a question we often get in the mortgage business. Of course, my advice may be biased as I work with people’s real estate, but we always like to make recommendations to our clients based on facts.

Here are some facts to prove that Guelph is not in a real estate bubble:

  1. Price increases are present, but the rate-of-growth in values is slow.

Guelph is currently in a sellers’ market. Home prices have increased by approximately 4.2% from 2013. Prices in 2015 are forecast to increase by another 3.4% in 2015. Price growth will slow in 2016 as demand may be impacted by marginally higher mortgage rates. Buyers will continue to look for more modestly prices homes as monthly carrying costs rise. The opportunity exists for strong price growth in entry level properties.

  1. Percent of price increases in Guelph

Our definition of a housing bubble is unsustainable price growth. Housing price growth in the early 1980’s was unsustainable, since homes increased in value year-over-year by 10 to 25 percent over a five year period. Do you remember the crash in housing prices in the late 1980’s after the housing bubble?

In the last five years, homes have increased in value by 3 to 6 percent, which will promote continued strength in home values. In fact, homes have increased in value since 1968 in Guelph by 6.815 percent.

While the real estate market is sustainable, the stock market is volatile. The rollercoaster of highs and lows makes real estate a more sustainable investment than the stock market.

  1. City of Guelph – an enterprise growth to development

Growth in Guelph is targeted within a combination of built up areas, Greenfield, intensification corridors and mixed use nodes, as well as the urban growth centres. There are 6 development nodes/corridors currently noted in the City’s Official Plan. The development nodes will serve to achieve the majority of the growth targets, in addition to current and planned Greenfield sites. Real estate located in or new these growth nodes will experience renewed interest and strong price appreciation.

Talk to your real estate sale professional so they can explain how these development nodes are expected to change the dynamics of homes and ownership in these specific areas and why it’s a good time to buy or sell real estate.