We are now three-quarters through 2022 and continue to see softer sales numbers in the Orangeville real estate market, due to quickly rising interest rates slowing buyers’ demand. It looks like home sellers have recognized that demand is weaker, and prices have been declining, as a result, there have also been fewer homes listed for sale which has created an interesting dynamic where demand is soft, and inventory is low making for a much slower real estate market this fall. Let’s take a look at the numbers.
The Month of September 2022
In September there were 58 homes listed for sale in Orangeville, a decrease of 6.45% from the 62 homes listed for sale in September 2021. The number of homes listed continues to remain below the 10 year average this month and shows that home sellers are taking a wait-and-see approach right now.
44 homes sold in Orangeville in the month of September, the same number of sales as in August and a 6.38% decline from the 47 homes that sold in September last year.
With 44 homes sold and 58 new listings, the Sales to New Listings Ratio (SNLR) for the month of September was 75.86%. Generally, when the SNLR is above 60% it is considered a seller’s market but right now with both the number of new listings and the number of sales being very low the SNLR stat is a little misleading.
The Average Sales Price in September was $805,770 an increase of 6.52% from the average of $756,479 in September last year. Despite the increase year over year the average continues to decline from the peak prices realized earlier this year, when the average was $1,049,670 in February, which is a 23.24% decline from the peak to September and is lower than the average in August, $829,100 (down 2.81% month-over-month).
The Average Sales Price to List Price Ratio was 97% in September, showing that while the market is slow and prices are declining, there are buyers who will act when they see a home that is priced fairly and represents value to the buyer.
The Average Days on Market for a home in Orangeville to sell was 34 days in September, this figure continues to increase as buyers are not feeling as rushed to decide about the homes they want to pursue, and since conditions for financing, inspection, and in some cases the sale of buyers property, have returned to offers.
At the end of September, there were 75 homes for sale in Orangeville, this is a 134.38% increase from the 32 homes available for sale in September last year. The amount of inventory, while much higher than a year ago, has been on the decline over the last two months and remains relatively low.
With 75 homes available for sale and 44 sales in the month of September, there are 1.7 months of inventory available in Orangeville. The months of inventory number is a little misleading because when there are under 4 months of inventory it is generally considered a seller's market however the Orangeville real estate market is behaving more like a buyer's market at the moment due to the decreased demand.
Year-to-Date September 2022
Through the first three quarters of 2022, there have been 792 homes listed for sale in Orangeville, an increase of 10.46% over the 717 homes listed over the same period in 2021.
There have been 429 homes sold through the first nine months this year, a 27.41% decline from the 591 sales in the first three quarters of last year.
Year-to-date the Average Sales Price is $933,676 an 18.68% increase over the average of $786,698 over the same period last year. The Average Sales Price continues to be heavily influenced by the astronomical increase in prices that were experienced earlier this year and has been on a slow decline since February.
The Sales Price to List Price Ratio for the first three quarters of 2022 was 106% again this is due to the market conditions that we experienced at the start of 2022.
The Average Days on Market year-to-date is 14, this number has been increasing each month since experiencing a low of 5 days in February.
What Does All This Mean?
The effects in higher interest rates continue to impact the Orangeville real estate market, putting downward pressure on demand, resulting in declining prices and low sales volumes. Interestingly there has been a reduction in the number of new listings which has created a situation where the inventory of homes for sale has remained low despite the reduction in the number of sales.
If you are thinking of buying a home in this market, there is a little more selection of homes to choose from and there is less competition for the homes that are available. With inflation remaining high interest rates will almost certainly move higher at the end of October. In the short term, I don’t see any indications that real estate prices will begin to rise so this is an opportunity to be intentional about the home and location that you want to live in. Make sure you understand your finances and set a budget that will work for you.
If you are thinking of selling your home right now, know that while prices are not at the levels they were at the beginning of the year, they remain strong given what is going on with interest rates and what the future may hold for the economy in general. Selling your home in this market will require you to be patient with the process and know that with fewer buyers there is less showing activity. Given the current market conditions, it is important that your home represents value in the eyes of a buyer, which means that the condition of the home and the price match each other. By working with an agent who will invest in your listing with staging, professional photos, and video and a marketing plan to get maximum exposure you can reduce the time your home is on the market and maximize your return.
If you would like to discuss what is going on in the Orangeville real estate market or how any of this affects your specific situation reach out any time or use the link below to schedule a call with me.
https://calendly.com/brianrooneyrealestate
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