The spring real estate market continues to be slower than normal in Orangeville but in May we have seen some signs that activity is starting to pick up. After a very slow month of April, there have been increases in the number of homes being listed in sold through the month of May. While overall activity in the resale real estate market continues to be down, compared to last year, prices have held up and the average sales price in Orangeville continues to be ahead of 2019 comparable levels.
Through the COVID-19 pandemic, our industry has continued to evolve how we are conducting business. We have made changes to our procedures to continue to allow our clients to have the ability to buy and sell real estate and remain safe through the process. Let’s take a look at the numbers.
The Month of May
The month of May is traditionally the middle of the busy spring real estate season, as expected this year sales activity was slower than what is normally experienced. There was an increase in the activity in May when compared to April, and it looks like this trend will continue into June.
There were 45 resale homes listed for sale in May 2020, which represents a 62.18% decrease as compared to the 119 homes listed for sale in the May of 2019.
As expected, the number of resale homes sold in May 2020 was down with 47 sales as compared to 72 sales in May 2019 representing a 34.72% decrease.
The average sales price continues to trend higher than last year. The average price of a home sold in May 2020 was $617,727 an increase of 6.30% over the May 2019 average of $581,131.
The list price to sales price ratio remains at 99% in May of 2020 the same as the year before this is an indication that resale housing prices continue to hold up despite the impact of COVID-19.
The average days on market for the month of May was 27 days which is an increase of 50.00% compared to the average days on market of 18 days in May of 2019 but this number is still low and continues to indicate we are in a seller's market.
At the end of May 2020, there were 50 active listings in Orangeville as compared to 98 at the end of May 2019, a decrease in inventory of 48.98%.
Year-to-Date
To the end of May, there have been 195 sales this is a decrease of 22.31% form the 251 transactions in the same period of 2019.
The average days on market continues to remain low at 19 days in 2020 compared to 23 days in the same period of 2019. This indicates that despite the slow down in activity there are still active buyers in the market.
The average sales price through the first five months was $605,201 which is a 7.73% increase from the average of 561,796 from the same period of last year.
The sales price to list price ratio continues to remain steady at 100% so far in 2020 compared to 99% in 2019. Indicated stability in the prices in the market.
What Does All This Mean?
In the month of May, we have seen a little more life in the real estate market. There has been a slow increase in the number of sales over the month of April and while we have not seen a return to the normal activity of the spring market there has been a willingness on the part of buyers and sellers to continue to get deals done.
Prices in the Orangeville market have held up during the last two months and despite the slow down in the number of transactions the resale home inventory has remained very low, keeping prices close to the levels we have seen all year long.
If you are a seller, the real estate market in Orangeville continues to be a seller’s market with low inventory and continued higher average sales prices compared to last year. Homes continue to sell and buyers are returning to the market. If you are thinking of selling your home, we have implemented a number of protocols to help protect you from COVID-19 when buyers come to view your home.
If you are a buyer in the Orangeville real estate market, we have seen buyers that continue to be active in the local market and relatively low inventory levels continue to support higher prices. I continue to believe that over time real estate will continue to hold its value and be a great investment over the long term.
There was some news recently from the CMHC that they expect housing prices to decline in 2020. This is a national view. So far, we have seen prices stay relatively stable in our local market with no signs of a significant decline in prices. The number of new listings and sales continue to remain close and we still have a low inventory of resale home available for sale right now. With these dynamics at play home prices should continue to be stable at the current levels in the near future.
If you have any questions about the Orangeville real estate market or would like to discuss your specific situation in more detail please feel free to reach out to me and we can have a chat.
Post a comment