One quarter of the way through 2025 and the Orangeville real estate market is showing us that buyers are concerned about where the economy is headed and that lower interest rates are, in fact, not the cure-all to a slow real estate market.
As we ramp up for the spring real estate market, buyers were very quiet again in March, with 33 sales. This is only down 13.16% from the 38 sales in March 2024 but is well off the 10-year average of 63 sales in the month of March.
The number of new listings also lagged a little for this time of year with 70 new listings hitting the market down 18.60% from the 86 new listings in March last year. This is also down from the 10-year average of 94 new listings in March.
At the end of March, there were 102 listings available, an increase of 56.92% from the end of March last year.
The average sales price of a home in Orangeville in March was $767,833 down 7.55% from March 2024. In reality, the price of homes hasn’t changed a whole lot in the last two years the average continues to move up and down based on the mix of homes that sell each month and due to a limited number of sales this average can fluctuate a lot.
With 33 sales and 70 new listings in March the sales to new listings ratio (SNLR) is 47.14% which indicates a balanced market, and with 33 sales and 102 homes available for sale at the end of the month, there are 3.1 months of inventory a the end of March, which still technically indicates a Seller's market. The real estate market in Orangeville is much closer to a Buyer's market than these numbers indicate.
What Does All This Mean?
The Economic uncertainty from the trade war between the United States and Canada (and the rest of the world) has made many people take a wait-and-see approach to real estate. When people are concerned about the outlook for the economy and their own personal job security they will tend to be more cautious. Both Buyers and Sellers have moved to the sideline waiting to see what happens next.
It's interesting that the best listings, homes that are in move-in ready condition and priced well are still moving fast but the rest of the market is very quiet. If you are looking to purchase a home there is more selection of homes to choose from but know that there are certain homes that will move off the market quickly and others that you can take your time with.
From a seller's point of view, pricing is so important right now. With a smaller pool of buyers out in the market an overpriced property will sit and once it’s been seen as overpriced you will find yourself chasing the market lower to get to the price where your home represents a deal in the eyes of buyers.
Looking ahead the Federal election is less than a month away. The results of the election will help to provide some answers to how Canada plans to proceed in the trade war with the US. Unfortunately, it looks as though Canada, and the rest of the world, is dealing with the United States as a trade partner acting on the whim of one man. Tariffs may be here to stay for the next four years or they may announce that they are ending tomorrow, no one knows and this uncertainty will continue to be a drag on the Canadian economy as a whole and by extension the real estate market.
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