Orangeville Real Estate Market Stats – June 2022

It’s hard to believe that we are halfway through the year already. The first six months of 2022 have been wild for the Orangeville real estate market going from the frenzied start of the year that saw prices rise extremely fast to the slowdown in activity that we have seen since March. In June the sales activity continues to be slow and remains below average for this time of year, the average sales price was slightly higher than it was in May and the number of active listings grew again at the end of June as compared to a month earlier. Looking forward to this summer I think we will see slower than average activity in both the number of new listings and the number of sales and prices may trend slightly lower once the Bank of Canada makes its latest interest rate announcement this week. Let's take a look at the numbers for June.

The Month of June 2022

In June there were 93 homes listed for sale this was an increase of 4.49% over the 89 homes listed in June of 2021 and is similar to the historical average of new listings in Orangeville for the month of June after the last four months of elevated listing activity.

41 homes sold in the month of June, this is a 45.33% decrease from the 75 sales that occurred in June 2021. This continues a trend of below average sales that we have experienced in Orangeville over the last two months.

With 41 sales and 93 homes listed during the month, the Sales to New Listings Ratio (SNLR) is 44.1%. With the SNLR between 40% and 60%, it is an indication of a balanced market. The SNLR is higher than it was in May but has deteriorated quickly over the last two months as a result of the decline in sales activity in Orangeville.

The Average Sales Price of a home in Orangeville was $900,221 in June this is an increase of 12.81% over the average of $798,023 in June of 2021. The average sales price in June was slightly higher than it was in May but remains below the peak we experienced in February of this year.

The Average Sales Price to List Price Ratio for the month of June was 98%, which shows that the homes that are selling are priced well and are on average receiving offers of close to the asking price.

The Average Days on Market was 16 in June, this number has been rising over the last couple of months but remains low.

At the end of the month there were 99 homes available for sale in Orangeville this is a 141.46% increase over the 41 homes that were available in June of 2021. While the amount of inventory has grown significantly in the last few months the number of homes currently available for sale is more in line with what was available pre-Covid. 

With 99 homes available for sale and 41 sales in the month of June, this indicates there are 2.4 months of inventory available in Orangeville. This figure has increased significantly over the last two months but technically remains in sellers market territory. Over the summer I would expect this figure to continue to rise.

Year-to-Date June 2022 – The First Half

There were 595 homes listed for sale in the first half of 2022 an increase of 11.01% over the 536 sales in the first half of 2021.

In the first half of 2022 there have been 319 homes sold a decrease of 26.67% from the 435 sales in the first six months of 2021.

The year-to-date Average Sales Price is $970,332, up 23.20% from the $787,631average for the same period in 2021. This year-to-date average has been declining since February.

The Sales Price to List Price Ratio for the first six months of 2022 is sitting at 108% again this number has been declining since February and has fallen below 100% in each of the last two months lowing the year-to-date average.

The Average Days on Market is 9 days over the first half of 2022 again this figure has been impacted by the strong start to the year and has been increasing as the demand has slowed with rising interest rates.

What Does All This Mean

We are seeing in the stats for the month of June that the decline in demand due to higher interest rates is real. The number of sales has been trending significantly below average in the last two months as the effects of higher rates, and as a result, decreased buying power has been felt by home buyers. Looking forward to the summer I do not see conditions changing, the Bank of Canada has an interest rate update scheduled for July 13 where interest rates will rise again. I expect there to be continued slower sales activty over the summer, and prices to trend slightly lower in the near term. 

If you are looking to buy a home in this market, your choices have increased, and the competition has decreased but so has your buying power. For the majority of people who are buying and selling a home, timing the market is near impossible and can leave you out of the housing market for much longer than you want to be out, so my advice is to always buy and sell in the same market and move for lifestyle reasons. If you are looking to buy your first home or if you are looking to get back into the housing market, interest rates are continuing to rise and inflation remains high, there is a risk of some downside for housing prices in the short term, but on a five to ten year horizon housing prices should be higher than they are today. With that said it is always important to know your finances and set a realistic budget for a home, so you don’t end up over extended financially.

If you are planning to sell your house, you need to remember that buyers have more options so they are more discerning when it comes to the home they choose to buy. Your home needs to stand out from the competition in both the way it is presented and promoted. It is important that you choose to work with a professional who will help guide you to maximize your return on the sale by investing in staging, professional photography, and videos and promoting your listing where potential buyers will see it.

If you would like to talk about what is going on in the real estate market and how it may affect your personal situation, feel free to reach out or click the link below to book a call.

https://calendly.com/brianrooneyrealestate