2009 ended up being a remarkable year, considering the turmoil in the financial markets. In the Headwaters Region, which includes Orangeville, Dufferin, Caledon and Erin, the above Chart shows that there were fewer listings (blue lines) in 2009 (vs 2008).

Positive News in the Real Estate Market
-By Margorie Grime
September 28, 2009
 

Ontario—Market Riding Higher

According to the Royal Bank:  “Ontario’s housing market has been on quite a roller-coaster ride in the past year—going from a gentle descent late last summer to a plunge during the fall and winter, then to an impressive surge since the spring.  The gyrations of the market have reflected the swings in the economy and the effects of the financial crisis.  However, the current upturn can be largely attributed to solid improvements in affordability in the province. …[Measures of affordability] are now below historical averages, indicating that the costs of homeownership have reached attractive levels in the province.  While communities continue to face tough economic prospects that are holding back local demand, the general tone of the market has clearly turned positive.  This is being reflected in notable gains in housing prices in recent months."

An affordability reading of 50% means homeownership costs including mortgage payments, utilities and property tax take up 50% of a typical householders monthly pretax income.  The lower the measure, the more affordable home ownership is.  The higher the measure the more costly.

2nd Quarter Affordability indicies:  Standard Condo 26.9%   Standard Townhouse 31.5%   Det. Bungalow 39.1% Det. 2 Storey  44.4%.

State of the Market
July 2009
-By Margorie Grime
August 11, 2009

In July 2009, Orangeville reported a record 82 sales, up 100 per cent from July 2008 (41 sales reported) and the highest number of sales since January 2005! All areas recorded higher July ’09 sales than July 08. Caledon sales were up 29% (84 July 2009 vs 65 July 2008); Dufferin sales were up 21% (40 vs 33); Erin sales were marginally up 5% (39 vs 37). A remarkable recovery (particularly for Orangeville, Caledon and Dufferin) and unusual for July as typically sales slow in the summer months.

Perhaps, some of the factors that have contributed to this phenomenon are:

• More families holidaying from home and having a look/see at real estate;
• Unseasonably wet, cool weather – what better time to house hunt;
• Likely the lowest interest we will see in the foreseeable future;
• Renewed confidence in the economy;
• Release of pent up demand for those who have been sitting on the sidelines; and
• Re-emergence of the move up buyer into the market. The move-up buyer creates a more stable market as for each sale/purchase, there are further sales/purchases.

HOW MANY PROPERTIES SELL PER YEAR

State of the Market
March 2009
-By Margorie Grime
April 14, 2009

March 2009 home sales in Orangeville were 55 vs 54 in 2008. The big difference being the number of listings; there were 68% more listings in 2009, 189 vs 112 in 2008. Home sales have been driven by price conscious Buyers and record low interest rates. The First Time Buyer has resurfaced. Buyers are looking for well-priced properties that reflect perceived market conditions: i.e. 5-10% drop from 2008 prices.

In a perfect market the average price and median price (the middle price) are the same. The space between these lines reflect that there have been more higher priced or lower priced sales.