As you have probably heard in the media lately the real estate market in Canada has been very active and the Orangeville real estate market has been no different. We continue to see active buyers in our market competing for homes as they come available for sale. Most homes are selling in multiple offers and over asking price. There continues to be a shortage of homes available for sale which is helping to keep the prices rising.
When we are looking at these statistics keep in mind that last year February was an active month and we were shaping up to have a busy spring before the initial lockdowns, so we are comparing to what was a busy market. Here is a look at the February real estate market stats.
The Month of February
In February listing activity was a little slower than a year earlier, with 77 homes listed for sale last month, a 7.23% decrease, compared to 83 homes in February 2020.
The number of sales increased by one sale, with 61 sales in February 2021 compared to 60 in February 2020.
The average sales price in February 2021 was $770,476, a 28.18% increase over the $601,087 average in February 2020. This is a huge increase and slightly higher than the percentage increase from January.
The sales price to list price ratio continues to remain high, with the average home selling for 109% of its list price. This is an indication of the high number of qualified buyers active in the Orangeville area and that homes are selling in multiple offers.
The average days on market continues to be very low with the average home selling in 6 days in February.
At the end of February, there were 28 homes available for sale in Orangeville, compared to 47 at the end of February last year, this is a 40.43% reduction in the inventory. The lack of inventory continues to be the biggest factor contributing to the increases we have seen in prices.
As of end of February, there were 28 homes available for sale and there were 61 sales in the month which indicates there is currently less than 0.5 months of inventory on the market. We are very much in a seller’s market.
Year-to-Date February 2021
For the first two months of 2021, there have been 118 homes listed for sale, as compared to 123 in the same period a year earlier, a 4.07% decrease in the number of homes listed for sale.
Despite the slightly lower number of homes being listed, there was an increase in the number of sales with 94 homes sold through February 2021, a 9.30% increase as compared to the 86 homes sold in the first two months of 2020.
The average sales price for homes sold so far in 2021 has been $763,741. This is a 27.16% increase as compared to the average sales price of $600,633 through the same period of last year.
The sales price to list price ratio so far in 2020 is 109% meaning that on average homes are selling for 109% of the list price. Last year this ratio was sitting at 100%.
What Does All This Mean
Home prices in Orangeville have increased at a rapid pace to start 2021. While I do anticipate home prices to continue to be higher in 2021 compared to 2020, I do not think that increases of close to 30% will be sustainable over the full year. I do anticipate that more inventory will come on the market later in the year and this will help satisfy the demand for homes in our area.
If you have been thinking about selling your house now is a great opportunity to take advantage of the high demand for houses in Orangeville and to unlock the equity that you have built up in your home. The biggest issue you may have is finding a suitable home to move to.
If you are a buyer looking in today’s market you will need to have some patience. In the current market, the list price is generally the starting point for negotiations and many homes are selling for significantly above the asking price with many competing bids for the same property. To get the home you want in this situation you will need to be strategic and disciplined when you are making an offer. Make sure you are preapproved for financing, understand your finances, and set a budget for your home purchase. That way you will be in the best position to act quickly and make a competitive offer on the right house when it comes available.
If you are interested in knowing what your home may be worth in the current market or would like to discuss how what is going on in the Orangeville real estate market affects your specific situation I’d be happy schedule some time to have a chat.
Post a comment