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Local housing “definitely a sellers’ market” with prices skyrocketing

March 10, 2017   ·   0 Comments

By Mike Pickford

“This is definitely a sellers’ market right now.”

That’s the harsh truth facing prospective homeowners in Orangeville, with the housing market skyrocketing over the past 24 months.

While house prices have always been pretty consistent in the area, thanks in large part to its perceived manageable commuting distance to Toronto, Orangeville has experienced a considerable boom in recent times, with the Toronto Real Estate Board reporting the average home is worth nearly 50 percent more today than at this time in 2015.

David Baker, sales representative with Royal LePage RCR Realty, says the incredible inflation the community has seen over the past two years can almost exclusively be attributed to what he calls a “push-out effect” from the Toronto housing market.

“There are a number of maybe small factors people can point to as to why prices have gone up in our area, but I think it’s mostly down to the fact that prices in Toronto and nearby communities such as Mississauga and Brampton have also seen extensive growth,” Mr. Baker said. “People are looking at what they’re paying for a smaller home closer to the city and realizing they can get a nicer, bigger home here in Orangeville, so we’re seeing a big ripple effect.”

He added, “Prices right now are being driven by people coming into the area from out of town, simply because homes are more affordable than in some jurisdictions to the south and to the east.”

According to the Toronto Real Estate Board’s Home Price Index, since February 2015, the average price of a detached home in Orangeville has jumped from $370,100 to $538,300 – a whopping $168,200, or 45.45 percent increase. Over the same time, the typical attached property has leaped from $287,500 in 2015 to $415,800 this year, good enough for a $128,300, or 44.63 percent increase. A third listing, noted as composite (which includes both one and two-storey attached and detached single family homes) has seen prices peak at $513,300 so far this year, up from $357,300 in 2015 – an increase of $156,000, or 43.66 percent.

While apartments and townhouses aren’t listed on the board’s website, Mr. Baker indicated prices for those types of property had followed a similar path to the more traditional home. The current situation is even bleaker for those in the area attempting to seek out rental opportunities.

“Our vacancy rate is incredibly low for apartments and other style of homes,” Mr. Baker said. “People are snapping them up almost as soon as they’re put on the market.”

That trend isn’t unique to rental properties, with Mr. Baker stating the rising prices weren’t putting people off buying in Orangeville. “Right now we might see 20 homes come to us in any given week. They’re usually gone within seven days,” he said. “It’s a highly, highly competitive market right now.”

That competitiveness has led to something Mr. Baker said he hadn’t seen prior to the boom in 2015, and that is homes selling for significantly more than their assessed value.

“It wasn’t normal two years ago to see homes selling significantly over their market valuation, but in the last year, maybe year and a half, we’ve seen countless cases where one home has multiple offers, essentially sparking a bidding war. I’d say the majority of homes are going over their listed price at the moment, sometimes significantly over,” Mr. Baker said.

While a number of indicators point towards people flocking to Orangeville because of its proximity to the big city, Mayor Jeremy Williams believes there’s more to the community than just being a close enough commute.

“I think the strong real estate market is a symptom of how well Orangeville is doing as a town. Really, the quality of Orangeville as a community and as a place to live is directly reflected in these growing real estate prices. What we’re seeing is a very strong increase in prices, which effectively translates into the fact that people want to live here,” he said. “It’s an ideal community; we’re close to the GTA, but more than that we have so many features you’d want in a larger community, while retaining a small-town feel. Orangeville has a lot to offer, and I think more and more people are starting to realize that.”

While Mr. Baker isn’t naïve enough to believe this wave can continue forever, he is predicting prices will continue to rise in the near future.

“The indicators are that this trend will likely continue for at least another year, but nobody has a crystal ball, it’s impossible to say for sure what will happen,” Mr. Baker said. “As long as we’re more affordable than what’s around us, I believe our prices will continue to climb.”

He added, “Going back two or three years, we had 100 homes sitting on the market. These days we’re lucky if we have 20. It’s been a good two-year run so far, we’re going to have to wait and see how long it continues.”

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