2020 Guelph Real Estate, Part 2: Neighbourhood Appreciation

The Arboretum in Kortright East, Guelph

We choose the neighbourhoods we live in for different reasons. I live downtown because I enjoy the walkability and older homes. Someone may live in the South End because they want quick access to the 401 and a newer home. The reasons for our choices are infinite and complex. I do occasionally get inquiries about which neighbourhood has homes with the best appreciation values. This request makes sense, especially for first time buyers and investors, and is challenging to answer, because appreciation is very dynamic across all neighbourhoods.

I think it’s better to choose a neighbourhood that matches your lifestyle choices, affordability, or housing style preference. Buying a house should be for the long term, unless you’re doing a renovation ‘flip’ and even then, appreciation-value should be low on your list of considerations.

Having said that, it’s fun to see how Guelph neighbourhoods fared last year. The top 3 areas for median appreciation last year were Kortright East at 23.6%, Downtown at 19.9%, and Onward Willow with 19.0%, followed closely by Riverside Park at 18.9%. In the past, the South End has consistently been the winner in appreciation due to its proximity to the 401 and as a favourite for Toronto commuters. For these same reasons, increases in value for Kortright East is not a huge surprise.

The Downtown area has long trailed in appreciation with an average been 3%-5%, but this year it has shone. Buyers were attracted to the downtown vibe and walkability. I feel more Torontonians were attracted to the downtown because they could now consider the work-at-home option instead of having to commute to the Big City.

Lastly, Onward Willow. Again, this is a big surprise when comparing its appreciation over the years. In the past, Onward Willow has appreciated under 5% a year. This has been because the area is known as a ‘rougher’ part of town with a large rental population, which also keeps the area affordable. The median price in this area is $470,000, which is far lower than Kortright Hills’ median price of $769,000 and Downtown’s $589,000.  The lower prices in Onward Willow worked to their advantage this year as first-time buyers struggled with affordability.

All in all, Guelph did well with an overall median appreciation of 16.1%.  Wherever you live in Guelph, your biggest investment is growing nicely. If you have any questions about your home’s current value or your neighbourhood appreciation, please give me a call. In my next blog, I look into my crystal ball for the future of Guelph real estate.