The calendar says January so many are thinking this is the dead middle of winter. In real estate, January marks the time we professional Realtors® start to gear up for our busy season! The Spring Real Estate Market is just around the corner! We are not talking May flowers type of spring; this is Orangeville’s Spring Real Estate Market.
The Spring Real Estate Market typically starts in February and runs until end of March. What tends to happen over the Christmas Break, people have time off to make some plans. Some people have had family gatherings and decided their homes are just too small. Some people have got engaged and are now looking for their first home as a couple. Unfortunately there are people who have decided to end marriages and have held on until after the holidays and feel the New Year is a time for a new life, so unfortunately there maybe family homes that need to be sold.
Whatever the reason is, as there can be countless reasons, people start to think of making a move in January. Typically inventory levels are quite low so this gives Sellers first mover advantage. It is a simple economic supply and demand scenario. When inventory levels are low, it tends to drive up demand and that results in a stronger selling price.
I know there have been doom-sayers preaching of the great “crash” of the real estate market. These people need to stop listening to media and get a little more information. The reason we do not see a great plummet of Orangeville home prices is that inflation has been on a downward turn. The interest rate hikes of 2022 have done what they had intended. They have curbed inflation. The difference from now compared to the market drop of 2009 is that our employment rates are so high! In fact we have a shortage of employees. For the most part, people with jobs tend to be able to afford to live in their homes despite the interest rate hikes of 2022. They obviously are on a tighter budget but they are still in a positive side of the ledger.
We know that it is projected that Canada plans to welcome almost 1.9 million new permanent residents between 2022 and 2025. This will contribute to the already shortage of homes. Again, the whole supply and demand scenario comes into play. These new Canadians are not refugees and come with financial stability and contribute to our lack of employees and skilled trades. This is another reason we believe the real estate market will remain strong over the next several years.
We believe we have adjusted to more reasonable pricing of Orangeville Homes over the last 8 months. Statistics show that home values are still greater today than in 2021. This is an ideal time during this correction for our First Time Home Buyers to make their move. While home values are lower than this time last year, the First Time Home Buyer would need less of a down payment to get into the market. Yes the interest rates are higher but when you work things out with lower amount mortgaged, it is the same payments as last year except with a lower down payment. This window of time before the home prices start to rise again, is ideal because it allows the First Time Home Buyer to put conditions like financing and home inspection back in their offers. It gives them a better feeling of taking the leap into home ownership at their own comfortable pace.
This is the time to start to prepare your home for sale. There is a process to get you to the market. You only get one chance to make a good first impression and preparedness ensures that. Also do not think you need to wait until your gardens are in full bloom because by this time, inventory levels have increased and you are not in the driver’s seat as a seller any longer. We like to meet with our Orangeville Sellers now to get a game plan together so we are ready to hit the market at the exact right time to garner them the best price for their Orangeville homes.
If you want to get more information about the Spring Real Estate Market, just reach out and we would love to chat! No pressure but just solid, honest advice.