Here we are it’s early September the kids have gone back to school and it’s the season for things to get back to business as usual. The Orangeville real estate market continues to have lower than normal sales volumes and prices did show a decline in August after holding up better than I expected given the interest rate increases we have had so far this year. Let’s look at the numbers.
The Month of August 2022
In August there were 64 homes listed for sale a 10.34% increase from the 58 homes listed for sale in August 2021. The number of homes listed for sale has moved below the 10-year average for the first time this year, which would indicate that potential sellers are understanding that the housing market has slowed and are not rushing to try and cash in on the large profits that were available earlier in the year.
44 homes sold in August a decrease of 21.43% from the 56 homes sold in August 2021. August showed a slight rebound in sales activity from the lows experienced in July, but the sales was still below the 10-year average for the month.
With 44 homes sold and 64 new listings, the Sales to New Listings Ratio (SNLR) for the month of August was 68.75%. With the SNLR above 60%, it would generally point to a seller’s market however, despite what the stats are saying, the Orangeville real estate market is behaving like a buyer’s market.
The Average Sales Price for a home in Orangeville was $829,100 a decline of 0.69% from the average of $834,837 in August 2021. This is the first month where the average sales price in 2022 has been lower when compared with the prior year and as we move into the fall, I would expect this trend to continue. The $829,100 average in August represents a 21.01% decline from the peak of the market back in February 2022.
The Average Sales Price to List Price Ratio in August was 99%, which continues to be in line with the trend over the last few months. This tells me that home sellers that are pricing their homes well in today’s market continue to sell for close to the asking price and homes that are priced too high will sit on the market.
The Average Days on Market for a home in Orangeville in August was 28 days, this is higher than it was last month, and this figure continues to trend higher as buyers are being a little more patient when choosing a home and over the last few months conditional sales have become more of the norm causing the days on market to rise.
At the end of August, there were 90 homes listed for sale in Orangeville, a 309.09% increase from the 22 homes that were available at the end of August 2021. The current inventory of homes is a little higher than the historical average but is starting to normalize after the extremely low inventory experienced in the last two years.
With 90 homes available for sale and 44 sales in the month of August, there are 2 months of inventory available in Orangeville. Due to the low number of sales, this figure has bounced around over the last few months, and while two months of inventory is generally an indication of a seller’s market the current market conditions are not behaving that way.
Year-to-Date August 2022
There have been 734 homes listed for sale in Orangeville in the first eight months of 2022 this is a 12.06% increase from the 655 homes listed in 2021.
At the end of August, there were 386 sales a decrease of 29.04% from the 544 sales in the same period last year.
Year-to-date the Average Sales Price is $949,503 a 20.30% increase over the average of $789,309 in the same period of last year. This average is being held up by the extraordinary run-up in prices we experienced early this year and continues to decline as the year progresses.
The Sales Price to List Price Ratio year-to-date remains high at 107% again a result of the high prices that we saw at the start of the year.
The Average Days on Market year-to-date is 12 days this number continues to rise as the market has slowed down.
What Does All This Mean?
For the first time this year, we have seen the average sales price in Orangeville lower than it was at the same point last year. Rising interest rates have caused a slowdown in demand and prices to fall from the peak achieved at the start of the year. Rising interest rates will continue to play a major role in both the demand and pricing for homes. Generally, we see an uptick in sales activity in September but the interest rate announcement from the Bank of Canada on September 7th, raising interest rates an additional 75 basis points, may cool demand this fall. I do expect prices to continue to decline due to higher interest rates as buying power is eroded.
For sellers there continues to be pressure on prices due to lower demand and higher borrowing costs, so homes are taking longer to sell. If you want to get your home sold, you need to have it looking it's absolute best and priced according to the current market conditions, there are more options for buyers, so you want your house to stand out among the competition.
Remember if you are buying and selling in the same market you may be getting less for your home than you would have earlier this year but the home you are buying will also be less expensive, so if you have a need to move you should explore this option despite what you are seeing in the news.
If you have been thinking about buying, there is more selection of homes available on the market than we have seen over the last two years and prices have come down 21% from the peak in February. However, interest rates have increased and that means that your buying power has declined. If you are looking at getting into the market it is important that you have a solid understanding of your finances and that you set a budget that will allow you to be comfortable with the home you buy.
If you would like to discuss what is going on in the real estate market and how it impacts your specific situation, please feel free to reach out anytime or click the link below to schedule a call with me.
https://calendly.com/brianrooneyrealestate
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