Orangeville Real Estate Market Stats – April 2023

Spring has sprung and the Orangeville real estate market started showing some signs of life in April. Ok, really it started to show some indication of heating up at the end of March but April’s results show that buyers have returned to the market. Unfortunately, the new listings continue to be slow causing inventory to remain low. As a result, there is increased competition for homes on the market, multiple offers for homes that are available and prices are starting to creep higher.

The Month of April 2023

In April there were 59 homes listed for sale in Orangeville, a decrease of 50% from the 118 homes listed for sale in April 2022. The number of new listings is down 35% from the 10-year average of 90 new listings in April. This is concerning for home buyers as there was a low inventory of homes for sale to start the month this low number of new listings has exacerbated the problem.

57 homes sold in the month of April, this is a 10.94% decrease from the 64 sales in April last year. This represents a return to a more “normal” level of transactions in April, the 10-year average is 67 sales in April and shows that buyer demand has returned to the Orangeville real estate market.

With 57 sales in April and 59 homes listed for sale, the Sales to New Listings Ratio for the month of April 2023 is 96.61% which is a strong indication of the Orangeville real estate market returning to a seller’s market.

The Average Sales Price in April was $849,770 a decrease of 9.47% from the average one year ago of $938,711. This is a result of 2023 prices starting to accelerate and the comparable prices from 2022 declining from the February peak.

The Average Sales Price to List Price Ratio for the month of April was 99% which remains similar to where this has been most of the year so far. There has been an increase of home selling for at or above the list price in April, with 26 of 57 sales, 45.6%, having a sales price to list price ratio of 100% or higher.

The Average Days on Market continues to decline. In April on average homes sold in 14 days down from 17 days in March and 23 days in February.

At the end of April, there were 46 homes listed for sale a decrease of 30.30% from the 66 homes listed for sale in April 2002 and down from the 63 homes available for sale at the end of March 2023.

With 46 homes available for sale at the end of April and 57 homes selling during the month, this indicates that there are 0.8 Months of Inventory in the Orangeville real estate market at the end of April.  This is a concerning trend if you are looking to buy a home in Orangeville.

Year-to-Date – April 2023

We have found ourselves in very different places in the real estate market cycle between where we are now and where we were at the end of April 2022. Last year interest rates were on the rise and the real estate market was starting to cool after an insanely hot start to the year. This year after a slow first quarter we are starting to see buyers return to the market in April so while the year-to-date numbers do not compare favourably between this year and last year, the trend is very different.

In the first four months of 2023, there have been 208 homes listed for sale a decrease of 45.12% from the 379 homes listed in the same period of 2022.

There have been 134 homes sold through the end of April 2023 down 42.24% from the 232 home sold through four months last year.

The year-to-date Average Sales Price so far this year is $823,168 down 18.00% from the $1,003,876 average in the same period of 2022.

Year-to-date the Average Sales Price to List Price Ratio is 99% and the Average Days on Market has been 20 days.

What Does All This Mean?

Buyer demand has returned to the Orangeville real estate market this spring, I don’t know how long this will last but after six months of low sales volumes, it is good that demand is on the rise. Why is demand rising? With interest rates appearing to have stabilized at current levels I think people who delayed the decision to move during the uncertainty of last year have made the decision to make a move. Unfortunately, the low number of listings coming on the market has created a bit of a bottleneck where people want to secure the house they want to buy before listing the home they are currently in for sale. This is causing more competition for homes and an acceleration in prices.

If you are looking to buy a home, get ready for some competition. Demand is increasing and the supply of new listings has not been coming onto the market. This means that you need to make sure you have been pre-approved for a mortgage, that you have set your budget for a new home and you are ready to act when the home you are looking for hits the market.

If you have been thinking of selling this is a great time to sell. There is demand for homes, there is more competition and prices are trending upward despite higher interest rates. The bottleneck in the home selling process is finding the home you want to move to.

I do not expect these conditions to last, I think we are returning to a more “normal” seasonality in real estate. Based on history I would expect demand to remain higher through May and June before slowing down in the summer. With that said this market is also being driven by interest rates and any change in interest rates either way may change the market significantly.

The new listings that many keep expecting to hit the market in the form of distressed sellers have not materialized. Why? That will need a little more of a deep dive into what is going on with mortgages at banks but in simple terms, many borrowers have not been forced to feel the pain of higher interest rates due to extending amortizations on variable rate mortgage products. 

If you would like to discuss the current state of the Orangeville real estate market, or how the current market conditions relate to your specific situation reach out any time I would love to talk real estate. Alternatively, you can book a call with me using the link below.

https://calendly.com/brianrooneyrealestate