2022 in the Orangeville real estate market will be remembered for the wild rise in housing prices in the first quarter followed by an incredible slowdown in activity and a retreat in prices due to the Bank of Canada’s interest rate policy. It was almost as if there was a switch that was flicked by the Bank of Canada and many would-be home buyers moved to the sidelines and took a wait-and-see approach.
When looking at the stats for December keep in mind that December is generally a very quiet month for real estate activity and as a result can give you some unusual results.
The Month of December
In December there were 15 homes listed for sale, a decrease of 46.43% from the 28 homes listed for sale in December 2021. I think this shows that many potential sellers took a look at what has been going on in the market and decided to shift their plans to sell to the new year.
17 homes sold in December, a 41.38% decrease from the 29 homes that sold in December of 2021. This trend of low sales has been apparent in the fourth quarter and is a concerning trend moving into the new year.
With 17 homes sold and 15 homes listed for sale, the Sales to New Listings Ratio (SNLR) for the month of December was 113.33%. When the SNLR is above 60% it is considered an indication of a seller's market, this is exactly why I mentioned earlier that the December stats can provide some unusual results.
The Average Sale Price of a home in Orangeville in December 2022 was $716,294 this is a 25.95% decrease from the average sale price of $967,317 in December 2021. Between November 2021 and February 2022 is when sales prices accelerated their fastest and eventually peaked. As of December 2022, the Average Sale Price had declined 31.76% from the peak average of $1,049,670 in February 2022.
The Average Sales Price to List Price Ratio in the month of December was 96% which remains strong and continues to show that homes that are priced well will sell in this market.
The Average Days on Market in December was 38 days this is higher than what has been experienced over the last few months but is partially a function of the low number of sales and new listings in December there was a couple of older listing that sold in the month that pushed this number higher.
At the end of 2022 there were 46 homes available for sale in Orangeville, when compared to the 4 properties that were available at the end of 2021 this is a 1,050% increase over last year, but 46 homes for sale is not a lot of inventory the comparison is to a ridiculously low inventory that was experienced last year.
With 17 homes sold in the month of December and 46 active listings at the end of the month, this indicates there are 2.7 months of inventory, again this is a statistic that when there are less than 4 months of inventory it would be considered a seller’s market and when there are more than 6 months of inventory it would be a buyer’s market. The Orangeville real estate market is behaving more like a balanced to buyer’s market despite the low inventory level.
Year-to-Date – The full year of 2022
In 2022 there were 896 homes listed for sale in Orangeville, a 6.67% increase from the 840 homes listed for sale in 2021. This is a fairly normal number of listings in the Orangeville market for a full year. 2022 was interesting in that there was a much higher than average number of listings in the first and second quarters then the number of listings declined as interest rates continued to rise and the year ended with a slightly higher than average number of listings when compared to the last 12 years.
There were 493 homes sold in Orangeville in 2022 a decrease of 31.72% from the record-setting 722 sales that were recorded in 2021. The number of sales were trending above average to start the year but slowed down quickly as interest rate began to rise. The 493 sales in 2022 is one of the slowest years from a sales perspective there has been in Orangeville.
The Average Sales Price of a home in Orangeville in 2022 was $909,356 a 13.13% increase over the average in 2021 of $803,822. This a situation where in 2021 house prices were accelerating into the end of the year, and they hit a peak in February 2022 since then prices have declined into the end of 2022. The full-year average is being supported by the fast run-up in prices experienced in the first quarter.
In 2022 the Sales Price to List Price Ratio was 105% and the Average Days on market were 17 days, both stats are heavily influenced by the hot market that was experienced in the first quarter of the year.
What Does All This Mean?
The leading story for the real estate market in 2022 is how the Bank of Canada handled interest rates and how the rapid increase in borrowing rates caused the demand among home buyers to slow down dramatically. The last quarter of the year has been highlighted by low sales volumes, a low number of new listings and a decline in the average sale prices of homes in Orangeville.
In today’s real estate market, it is imperative that you have a good grasp on your personal finances and a solid understanding of what impact a rising interest rate environment may have if you are thinking of buying a home or getting into the real estate market. Prices have been declining and I expect home prices to continue to be under downward pressure due to higher borrowing costs causing decreased demand among home buyers.
If you are thinking of selling your house, buying and selling a home in the same market will mean that while you may get less of a return on your current home the price of the home you are buying has also declined and there are homes being offered at more attractive prices than we have seen recently. The main consideration when you are selling your home is to make sure your home stands out from the competition and shows a potential buyer that there is value in purchasing your home over the other properties that are available.
If you have any questions about your specific situation or would like to discuss what has been going on in the Orangeville real estate market reach out any time or click the link below and book a call with me.
https://calendly.com/brianrooneyrealestate
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