Happy New Year. 2021 was a wild year in so many ways including the Orangeville real estate market where the market remained very active all year long and we enter the new year with extremely low inventory. Let’s take a look back at the month of December and the year that was, and I’ll break down what happened in 2021 by the numbers.
The Month of December 2021
In December there were 28 homes listed for sale an increase of 64.7% over the 17 homes listed in December 2021. With the holidays December tends to be a slow month for listing activity and we saw that again this year.
There were 29 homes sold in the month of December, a 38.1% increase over the 21 sales in December 2021. This number was a product of the low number of new listings and the lack of inventory to start the month.
The Sales to New Listings Ratio for the month of December was 103.6% which indicates that more homes were sold in the month than were listed for sale, meaning that demand for homes in Orangeville remains very high and that if there were more homes listed for sale there likely would have been a higher level of sales.
The Average Sales Price for a home in Orangeville in the month of December was $967,317 a 25.51% increase from the $770,707 average in December 2020. This number is very high, well over the year-to-date average, and is representative of both the low volume of sales and the types of homes sold in the month.
The Sales Price to List Price Ratio was 105% and the Average Days on Market was 7 days in the month of December both indicating that demand has remained high for homes in Orangeville.
At the end of the year, there were 4 Active Listings, this is a 60% decrease from the 10 homes available for sale at the end of 2020 and is a record low inventory for the Orangeville real estate market.
With only 4 homes available for sale and 29 transactions in the month of December, this indicates there were 0.1 months of inventory at the end of the year.
Year-to-Date – December 2021
In 2021 there were 840 homes listed for sale in Orangeville a 14.6% increase over the 733 homes listed for sale in 2020. This number of homes listed in a year is slightly below the 10-year average of 858 homes listed.
The number of homes sold in Orangeville was very strong in 2021, with 722 sales taking place over the year. This was 16.2% higher than the 621 sales that took place in 2020 and was well over the 10-year average of 626.
The Sales to New Listings Ratio for the year was 86.0%, anything over 60% is considered to be an indicator of a seller’s market. At this level, the Sales to New Listings Ratio is showing there continues to be very high demand for homes in Orangeville.
For the whole year, the Average Sales Price of a home in Orangeville in 2021 was $803,822 this is an increase of 25.4% over the $641,211 average in 2020.
For the year in total, the Sales Price to List Price Ratio and the Average Days on Market finished the year at levels that we had seen for most of 2021 with the average home selling for 106% of the list price and homes selling on average after 10 days on the market.
What Does All This Mean
The Orangeville real estate market was very hot over the last year and despite some periods where it was looking like it was cooling down the demand for homes remained very high and we finished the year with prices appreciating to start 2022. There are more qualified buyers than there are homes for them to buy in the Orangeville area and with this high demand, the market remains very competitive.
With so few homes available for sale to start the year, January has started off with new listings hitting the market and a lot of competition for these homes, much like what we have seen since the summer of 2020. If you are thinking about selling your home now is a great time to sell. There are many qualified buyers looking to purchase homes in Orangeville and the demand has proven to be resilient through all of the last 18 months.
If you are looking to buy a home the same challenges remain that we have seen all year. There are not enough homes available for sale to satisfy the demand for homes. As result, we continue to see competition for homes, with most houses selling for well over the asking price. If you want to purchase a home in this market you need to have all of your finances in order, you need to be pre-approved for a mortgage, you need to have a budget, you need to respond quickly to new listings when they become available, and in many cases, you will need to be aggressive with your offer to secure the home you want.
If you are interested in what all of this information means for your specific situation, please feel free to reach out I am always happy to discuss our real estate market.
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