As we now head into summer, we reflect on the Spring Real Estate Market that never really came.

Here in the Centre Wellington area, we saw some slight spikes of activity near the end of January and April, but as we close out the first half of 2025, our market is trending 30% lower activity wise compared to 2024 (and again, 2024 was no barnburner).

The Centre Wellington market is actually underperforming markets around us, including Guelph which was off 12% compared to 2024. A bit of a headscratcher – but I have my theories which would take a whole other article.

We have a lot more detached homes in our market as a percentage of overall housing types. Price and affordability are certainly factors.

Having said this, there is plenty of evidence homes in good condition and are well presented – and priced right – are indeed selling.

But many sellers (and their realtors) are going to have to re-think current pricing on their homes if they want to sell.

Unfortunately, just because you would “like” a certain number to make the move you want to, it doesn’t mean buyers are willing to pay your price.

We are seeing more and more offers significantly under list price. And we are seeing a lot less sales as a result. The reality is only 1 in 5 homes are selling.

You cannot price based on past sales – you have to price based on current market conditions if you want to be the one that sells.

The hard truth is that things are not going to change anytime soon. A few successful trade deals, a few more rate cuts, less geopolitical upheaval (i.e. less wars) – and just less economic uncertainty in general – will start to change things.

I suspect there are some who are thinking when they read my recent articles – “Why would I get this guy to sell my home? I want the bubbly realtor who promises they can get my price.” I get it. But don’t misunderstand.

I market and put as much energy into selling your home at the highest price as any realtor. However, I’m not going to give you a certain listing price just to keep you happy (because eventually you won’t be).

You are going to get well researched advice – even though you might not like the number. I’m not looking for a “fast sale” – but I work on the premise that my clients do in fact want to sell their home. And frankly, maybe it’s not the time to sell if you don’t have to. Some hard conversations need to be held between realtors and sellers right now.

Interestingly, the one thing the data does show; now might actually be a good time to upsize (assuming you are financially able to do so).

The reason? Homes at the higher end have seen bigger decreases than homes at the lower end. Food for thought…

A quick recap – homes under $900,000 are selling better than homes over $1,000,000, nice bungalows are selling well, 2 storey homes over $1 million in new subdivisions are slow to sell (especially $1.3 and higher), condos over $750,000 continue to struggle, and country properties are outperforming.

And not to keep repeating myself – but condition and how a home is presented is very important, especially in this market.

I bring this up (again) as I have a recent real-life example. Two homes came to market in June. Pretty much the same home. The one was very simply staged, but clean – and reasonably well presented. The other – well, let’s just say less than ideal.

Could the realtor not at least have moved the vacuum from the middle of the floor before taking pictures? Two or three hours of cleaning up would have made a big difference. But I’m sure they saved about 1% commission by hiring the realtor giving a “deal”. Both these homes were under $700,000.

Selling price difference between the two – $45,000. Commission savings – maybe $6,500 (I hope at least!) You get my point. It’s what you net in your pocket that matters – not commission.

Will things pick up in the Fall market? It’s certainly possible. In the meantime, buyers may find some buying opportunities this summer.

For straightforward, honest real estate advice, feel free to reach out anytime at 519-766-3716 or email gmochrie@royallepage.ca

Until next month, take care.

George