After months of a red-hot real estate market in Orangeville are we beginning to see some signs of the market stabilizing? I think yes. We are definitely still in a very strong sellers market but there are some indications that the market may have peaked in March and is beginning to slow from the frantic pace of the start of the year.
The Month of May
May was a bit of a mix for the Orangeville real estate market, and with a slower than normal May in 2020, we do have some wide variances when we are comparing this year to last year.
There were 95 homes listed for sale in May 2021 this is a 111.11% increase from the 45 homes listed for sale in May 2020. The 95 homes listed represent a more “normal” number for May compared to the 119 homes listed in May 2019 and the 85 homes listed in 2018.
The number of sales continues to be high, especially when compared to the new listings. There were 70 homes sold in the month of May, this is a 48.94% increase from the 47 homes sold one year ago. Again if I look back on 2019 (72 sales) and 2018 (54 sales) you can see that activity in May tends to fluctuate but this was still a very active month.
The Sales to New Listing ratio for the month of May was 73.68% which indicates the Orangeville real estate market remains a strong sellers market with more buyers than sellers out there, but inventory is not selling through quite as quickly as it had been in March and April.
The Average Sales Price in May 2021 was $784,669 this is a 27.03% increase from May 2020 when the average sales price was $617,727. While this is still a large increase in the average sales price May is the second month in a row where the average sales price has declined since March. Since it is a relatively small sample size I am cautious to read too much in this trend but it is starting to look like March 2021 may have been a peak in terms of prices and we are beginning to see the Orangeville market stabilize a little in May and moving forward.
The Average Sales Price to List Price Ratio was 106% in May, again this figure shows that there is still competition for listings, it is a decrease from the level it was at in March (110%). This figure, I believe represents two things, one that given what has happened in real estate over the last year list prices have increased to new levels creating a smaller spread between the sales price and the list price, and second that there is a little less competition in the marketplace and homes aren’t for selling as much over ask price, as they were earlier this year.
The Average Days on Market in the month of May was 8, this figure is low but I still feel that it is somewhat higher than it could be as most sellers in this market are setting offer dates and if that were not the case many homes would sell in far less time than they have been.
At the end of May, there were 44 homes for sale in Orangeville, this is a 12.00% decrease from the number of active listings at the end of May of 2020. This is the number that continues to be the most concerning when I look at the Orangeville real estate market. Traditionally the inventory of homes for sale at the end of May is more than double what we see right now. In order to see prices stabilize we will need to have more homes come available on the market to satisfy the demand from home buyers. I think more inventory is on it’s way as the vaccination rates increase and the province begins to reopen we will see more people looking to cash in on the market conditions.
With 70 sales in the month of May and 44 homes listed for sale and the end of the month, this represents 0.6 Months of Inventory and while this is extremely low it is an increase from what we have seen most of this year.
Year-to-Date – May 2021
From January to May of 2021 there have been 447 homes listed or sale this represents a 62.55% increase over the 275 homes listed in the same period in 2020. This is also higher than the number of homes listed for sale in either 2019 (406) and 2018 (340).
Through the first five months of this year, there have been 361 sales, compared to the 195 in the same period last year an 85.13% increase. When compared to the two previous years, 2019 – 251 sales & 2018 – 219 sales, 2021 has been one of the most active years for real estate here in Orangeville.
The sales to new listings ratio through May of this year is 80.76%. This indicates that demand for housing in Orangeville is high and there are not enough listings coming onto the market to satisfy the demand.
The average sales price year-to-date is $787,112, a 30.06% increase over the $605,201 average in the same period of 2020.
Sales Price to List Price Ratio remains high with the average homes selling for 108% of the list price, and the Average Days on Market remains very low with the average home selling after only 9 days.
What Does All This Mean?
There have been some indications of the Orangeville Real Estate Market beginning to stabilize both through the monthly statistics and through some anecdotal evidence that I have observed over the last few weeks. Make no mistake about it we are still in a very strong sellers market, and this will not change until there is more inventory of homes available on the market or the demand for homes in Orangeville slows down, but there are some encouraging trends beginning to show up in our stats.
For Buyers, there seems to be some light at the end of the tunnel. The market statistics are showing some signs of a stabilizing of the market. I have seen a few price reductions and more conditional sales in our local MLS serving as anecdotal evidence of some changes in the market as well. The competition is still real in the Orangeville real estate market and many homes are selling with multiple offers, if the inventory of homes for sale can increase over the next few months we may see conditions improve for buyer. However, it is still important to be as ready to act as you can when you are looking, know what you are able to borrow from the bank, know your budget and be ready to act when the right property comes to the market for you.
For people that are still thinking about selling, we remain in a strong sellers market, and with the province opening back up and vaccination rates on the rise I think there will be more homes coming onto the market and it will test how robust the demand for housing in Orangeville really is. If you have been thinking about selling your home it is important to get your home ready to go on the market and figure out where you will be going once you sell.
If you would like to know more about the Orangeville Real Estate Market or what all of these statistics mean for your specific situation please do not hesitate to reach out and we can have a chat.
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