Orangeville Real Estate Market Stats – January 2021

In what is normally one of the slower months in real estate we saw the Orangeville real estate market continue to be on fire. Prices continued to accelerate with many homes selling in multiple offers and a continued low inventory of homes for sale.

The Month of January and Year-To-Date

In January listing activity was similar to January 2020, with 41 homes listed for sale last month as compared to 40 in January the year prior.

The number of sales increased last month, there were 33 sales as compared to 26 in January 2020 which represents a 26.92% increase. This is an indication that there are active buyers in the market that are ready to buy homes.

The average sales price in January 2021 was $751,291, a 25.30% increase over the $599,585 average in January 2020. This is a huge increase and since there are such a small number of transactions in our market the average sometimes gets skewed early in the year depending on the type of properties that are selling. When compared to the full-year average sales price from 2020 the January average is still 17.17% higher which is a significant increase.

Another telling statistic from January is the sales price to list price ratio, the average home sold for 107% of its list price. This is another indication of the high number of qualified buyers looking to purchase homes 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 19 days in January. This figure has remained low (under 30 days) for most of the past 18 months.

At the end of January, there were 17 homes available for sale in Orangeville, as compared to 35 at the end of January last year this is a 51.43% reduction in the inventory. The lack of inventory continues to be the biggest factor in the increases we have seen in prices.

The number of months of inventory is an indication of if we are in a buyers or seller's market. Normally if there are less than 4 months of inventory, we are considered to be in a seller's market, if there are more than 6 months of inventory we are in a buyer's market. At the end of January, there were 17 homes available for sale and there were 33 sales in the month which indicates there are currently 0.5 months of inventory on the market. We are very much in a seller's market.

What Does All This Mean

Home prices in Orangeville increased at an extremely rapid pace in January. This is not likely to be sustainable, while I do anticipate home prices to be higher in 2021 as compared to 2020 I do not think that increases around 20% will be sustainable. More inventory will come onto the market and I would anticipate buyers starting to pull back with the amounts they are offering for homes that are available, this may also become an issue on closing when appraisers come to value these recently sold homes.

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 several thousand dollars above the asking price with as many as 20 or more 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 know more about how what is going on in the real estate market affects your specific situation feel free to reach out anytime.