Orangeville Real Estate Market Stats - January 2023

It’s a new year and the Orangeville real estate market continues to see low sales volumes and a low number of new listings. There was a bounce in the average sales price but with low volumes that is likely to happen depending on the mix of properties that sell in a given month.

The Month of January 2023

In January there were 36 homes listed for sale. This is a decline of 20.0% from the 45 homes listed for sale in January of last year, and it is well below the 10-year average of 55 new listings in January.

21 homes sold in Orangeville in the month of January, a 46.15% decrease from the 39 homes that sold in January 2022.

With 21 homes sold and 36 new listings, the Sales to New Listings Ratio (SNLR) for January was 58.33%. With the SNLR between 40% & 60%, it would indicate we are in a balanced market, despite both sales and new listings being low.

The Average Sales Price of a home in Orangeville in January 2023 was $830,577 a decrease of 18.83% from the average of $1,023,219 we saw one year ago. It is interesting that the sales figure for January represents a decline of 20.87% from the peak experienced in February 2022 but was also an increase of 15.95% over the average sales price in December 2022. This is what happens when there are a low number of transactions, averages can be skewed with a shift in the types of homes that are selling in a given month. 

The Average Sales Price to List Price Ratio in the month of January was 96% it has remained around this number for the last six months.

The Average Days on Market in January was 39 days, this is similar to the figure from December, again when you are working with a low number of transactions in a month when you have a few older listings sell this number will be a little higher.

At the end of the month, there were 42 active listings in Orangeville, a 366.67% increase from the 9 homes available for sale at the end of January 2022. Despite this big jump in the year-over-year number, the level of inventory remains low for this time of year when compared to pre-pandemic levels.

With 42 active listings at the end of the month and 21 sales during the month of January, this indicated there are currently 2 months of inventory.

What Does All This Mean?

In the face of higher interest rates from the Bank of Canada, sellers started to jump back into the market in January to find that there isn’t a lot of inventory available to buy. There has been increased competition for homes that are priced attractively and provide good value to buyers, while homes that are priced too high continue to sit on the market with little interest from potential buyers.

Recently longer term fixed rate mortgage rates have been declining, particularly the 5-year rate, combined with lower prices has allowed some buyers that were on the sidelines to become active again.

As for home prices what I will say is that the market isn’t as strong as it looks in January nor is it as weak as it looked in November and December. With low sales volumes, the averages become less meaningful and you really need to dig into the neighbourhood and house type you are looking for to understand how prices have been moving over the last several months.

If you are thinking of buying a home right now there is a little more competition than there was just a few months ago and there continues to be a lack of inventory of homes for sale. I continue to believe the best way to prepare for buying a home is to have a clear understanding of your finances, and your budget. There continue to be opportunities to get a great home for a good value but you need to have a little patience in your search.

If you are thinking of selling your home, prices have declined from the insanity of a year ago but the rate of decline has slowed for a lot of property types and there is some stability in the pricing of homes right now. I do expect inventory to increase as we move into the spring and summer and return to more normal levels. Buyers are being cautious in today’s market and your home needs to show well and be considered better value than the alternatives at a price point or neighbourhood.

I would love to discuss where to start the buying process or how I can help you get the best terms when you are selling. Reach out anytime or book a call using the link below.

https://calendly.com/brianrooneyrealestate