2022 is winding down and the Orangeville real estate market has experienced a continued slowdown in sales activity in October. Prices continue to decline from the peak experienced earlier this year due to higher borrowing costs, as a result of the high inflation environment in the economy. Here are the stats from October.
The Month of October 2022
In October there were 48 homes listed for sale in Orangeville, a decrease of 5.88% from the 51 homes listed for sale. October generally marks the beginning of a slowdown in listing activity going into the end of the year and this trend continued this year with the number of listings continuing to decline.
26 homes sold in Orangeville, in the month of October, this is a decrease of 50.0% from the 52 sales that occurred in the same period of last year. After slightly stronger sales in August and September sales activity slowed further last month.
With 26 homes sold and 48 homes listed for sale, the Sales to New Listings Ratio (SNLR) in October was 54.17%. When the SNLR is between 40% and 60% it is considered that the market is balanced, however, the market continues to favour buyers right now.
The Average Sales Price in October was $783,615 a 7.14% decrease from October 2021 where the Average Sales Price was $843,894. Sales Prices are beginning to show more of the impact of interest rate increases. The Average Sales Price in October is a decrease of $266,055 or 25.35% from the peak in February.
The Average Sales Price to List Price Ratio in October was 97% which remains strong but has declined substantially since the start of the year.
The Average Days on Market for a home to sell in Orangeville in October was 33 days this compares favourably to the 34 days in September, and is a low number in a historical sense but is much higher than what sellers have become accustomed to over the last two years.
At the end of October there were 71 homes available for sale this is a 195.83% increase over the 24 homes available for sale in October 2021. This amount of inventory is similar to pre-pandemic seasonal levels.
With 71 homes available for sale and 26 sales during the month of October, there are 2.7 months of inventory at the end of October.
Year-to-Date October 2022
In the first ten months of this year, there have been 840 homes listed for sale a 9.38% increase from the 768 homes listed for sale over the same period last year.
Through ten months of 2022, there have been 454 homes sold, a 29.39% decrease from the 643 sales in the same period in 2021.
Year-to-Date the Average Sales Price for a home in Orangeville is $925,178 an increase of 16.92% over the same period a year ago. The average has been in steady decline after the high-flying start to the year, so this increase isn’t a true indication of where the market is right now.
The Sales Price to List Price Ratio year-to-date is 105% and the Average Days on Market is 15 days year-to-date again both figures have been declining for most of the year after the market conditions that we experienced early in the first quarter.
What Does All This Mean?
The low volume of sales in October is an indication that higher borrowing rates have made an impact on the demand for houses in Orangeville. I would expect that the trend of low sales volumes will continue over the remainder of this year and into the start of 2023. So far, the decreased sales volumes have happened in connection with a lower volume of new listings since the start of summer. As a result, prices have remained fairly strong, but there has been more of a decline in prices over the last couple of months.
If you are thinking of selling your home you want to make sure that your property will stand out from the other homes that are available for sale, so you can generate more interest, showings, and ultimately better terms when you sell. Book a call and we can discuss how to make your home stand out from the crowd and get the best results when you are selling.
If you are looking to buy real estate in Orangeville it is nice to know that there is more selection with less competition for homes. The downside is that borrowing costs have reduced buying power, but homes have reduced in price by over 25% from the peak in the market back in February. Between now and the new year the expectation is that the Bank of Canada will increase interest rates again in December and I would expect the real estate market to be quiet in terms of sales activity through the first quarter of 2023. My advice for Buyers right now is to take a long-term view and find a home that suits your needs and will work for your family over the long term as we are currently in a declining price environment and no one knows when that will change.
If you would like to chat about the real estate market in Orangeville or how any of this information affects your specific situation send me a message or book a call using the link below.
https://calendly.com/brianrooneyrealestate
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