December is typically an interesting time in the Southern Ontario Real Estate market since it is often when the market quiets down while folks enjoy the holiday season. While this is certainly the case for many of the markets we serve, there were a few interesting observations this month, and we will see what the new year brings for the Real Estate market.
With 2021 having uncharacteristically low inventory levels, December 2022 saw inventory start to correct in some areas while other areas continued to have a sharp decrease in new listings. Again, this could be a combination of seasonality, continued uncertainty in the market, and the economic climate as a whole.
Sales continue to decline year-over-year, which has been the story for Southern Ontario since the spring of 2022. While areas like Newmarket and Vaughan only saw a 15-20% decline in sales, areas further north are experiencing fewer home sales compared to last year, with Midland seeing a 56.5% decrease in home sales.
With fewer home sales overall, slight fluctuations in the average sale price will be more likely, as the impact of a single home sale is much more significant when there are fewer home sales overall. Some locations have begun to see a decrease in the average sale price, but other markets, like the Alliston area, saw gains upwards of over 22%.
Homes in nearly all areas within Southern Ontario are staying on the market much longer than in 2021. With the exceptions of Newmarket and south, homes stayed on the market between 50 and 90 days on average. Areas like Newmarket and Vaughan, which had very competitive markets, are selling firm in just under 30 days.
When comparing year-over-year trends, Barrie and the surrounding area saw a substantial uptick in new listings compared to December 2021, which was uncharacteristically low for new inventory. With 188 new listings hitting the market in the area, 13.3% more new properties were listed compared to last year. A decrease in home sales year-over-year continues to trend, with 130 sales in the Barrie area at a 35% decline. Home prices have dipped compared to December 2021, with the average sale price reaching $793k. Homes continue to remain on the market longer than last year as well, with the average home going firm in 54 days.
Orillia and the surrounding area also saw a large increase in new listings for the month of December. With 71 homes becoming available, this market saw a 22.4% increase in inventory compared to December 2021. Home sales are down by 50% in Orillia and the surrounding area, but home prices have remained steady year-over-year. Compared to December 2021, sellers saw a 2.1% gain in home value, with the average sale price reaching $828k. A continued trend in Orillia is that homes are taking longer to sell than this time last year, with homes selling firm in 81 days on average. This is quite a bit longer than in 2021 when homes were on the market for just 21 days on average.
Unlike many areas north of the GTA, Midland and the surrounding areas saw a marginal decrease in new listings, with 42 new properties listed. Home sales were also down in this market, with 20 properties sold at a 56.5% decrease compared to December 2021. The average sale price in Midland for December 2022 was $560k, which was down by 19% compared to this time last year. Homes are spending an average of 80 days on the market in Midland, which is an increase of 58 days.
The Collingwood area also saw slightly fewer new listings in December 2022 than last year. There were 106 new properties listed, which is a 1.6% decrease from December 2021. Fewer home sales continue to be the story for Collingwood, with 75 properties sold in December. Prices have also softened slightly for Collingwood and the surrounding areas, with the average sales price in December being $871k. Homes are also taking quite a bit longer to sell in Collingwood, with the average property selling firm in 87 days on average.
With 54 new properties coming available in Alliston and the surrounding areas, there was a 14.3% decrease in new inventory year-over-year. Sales are also down in this region by 45.5%, which has been common for many areas in Southern Ontario. Despite fewer sales, home prices have risen by 22.5% compared to December 2021, with the average sale price reaching $1.3M. While homes are on the market 41 days longer than they were last December, homes are selling firm in 55 days on average, which is a bit faster than other markets north of the GTA.
Wasaga Beach was an anomaly compared to other markets in December in that there was a 28% increase in new inventory, giving buyers plenty of choices. However, home sales remain down by 40% with 21 sales, and prices in Wasaga Beach have decreased slightly, with the average sale price at $629k. Homes in Wasaga Beach are also taking longer to sell than in previous years, with the average home selling firm in 85 days on average.
With a marginal decrease in new inventory, Newmarket saw 56 new properties come available, which is a mere 3.4% decrease from December 2021. Home sales are down as well but only by 15.5% in December. The average sales price in Newmarket also decreased in December 2022 compared to this time last year, with the average sale price at $1.1M. While homes are still selling 15 days slower than they did in December 2021, the average home is selling firm in 26 days which is markedly quicker compared to most markets in Ontario.
Vaughan saw a tremendous decline in new inventory. The city of Vaughan had 204 new homes available, but this is down year-over-year by 20.6%. Home sales are down by 51%, which is a very common story for Ontario, with 126 sales. Despite this, prices in Vaughan are close to the same as in December 2021, with the average sale price reaching $1.4M, a 0.7% increase. Homes in Vaughan are also selling quicker than most areas in the province, with homes going firm in 28 days on average, which is just a 12-day jump from December 2021.
Now more than ever, buyers need support and guidance in searching for their next home. With so many obstacles and affordability questions, you want to make sure that the home you purchase is well worth the effort. To do this, you need to work with a Professional Realtor® who knows the local market better than anyone and can negotiate a deal that works for you.
Heading into 2022, the phrase “houses sell themselves” was thrown around a lot by the general public due to the competitive market for buyers. While a quick sale was much more likely in the early part of last year, it is far from the case heading into 2023. Now more than ever, it is crucial to have a team of professionals working with you to ensure that hesitant buyers can see all the value your home has to offer. You want to work with a team that has a proven system of success and will go above and beyond to show off your home in the best way possible, and who will make the process stress-free from beginning to end.
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