Davids & DeLaat is anticipating that as the Niagara Region slowly re-opens and the "new normal" takes over, the pace of the Niagara Region's real estate market activity is going to be hot out of the gate.
We predict that there will be a healthy demand for homes due to a lot of pent up demand that has been brewing during the mandatory social distancing phase we have all just experienced. We continue to receive overwhelming feedback from our clients that the mandatory time spent at home has created a lot of clarity for some and as a result there a lot of buyers in the market for a new home due to the need for more space for: a growing family, a change of pace, a larger backyard or a home that can accommodate a home office.
We also continue to receive feedback from our extended network of real estate agents within the GTA that the Niagara Region is being seen as a destination for out of town buyers due to the advent of working from home status and those living in densely populated urban centers, such as downtown Toronto, looking to move to a community that offers affordability, a better quality of life and the option to live in a freehold or townhome instead of a 500 sqft condo on the 23rd floor.
As we all know....... there is no better place to live than the Niagara Region. Current Niagara Region residents looking to purchase a new home combined with an anticipated spike of out of town buyers looking to call the Niagara Region home leads us to anticipate a strong demand and healthy return to normal with the Niagara Region's real estate market. We can expect that there are a lot of potential buyers chomping at the bit and ready to explore new options as the re-opening phases begin to take effect. Eager buyers combined with the low inventory the market currently reflects will result in healthy competition in the market which leads to prices not only maintaining in a healthy format but we even anticipate housing prices to be on the rise again.
We do have clients that are concerned about the direction the Niagara Region real estate market may take further down the road. Unfortunately, we do not have a crystal ball, and if we did, it's broken because we would have never predicted the last 3 months. What we can offer as feedback towards concerns is: the Canadian government has stepped in during this time to bolster the economy and aid to Canadians across the country. The goal of the financial relief measures implemented has been to assist in lessening the impact of the coronavirus in hopes to curb a major economic downturn.
To assist with reviving the economy back to life after its government-induced coma, the Bank of Canada has significantly lowered the benchmark interest rates in hopes to help boost the economy and keep inflation stable. Rates are the lowest they have ever been currently. This will motivate not only first-time homebuyers but will also motivate current homeowners to jump at the opportunity to take advantage of low-interest rates and use the equity gained in their current property combined with increasing their mortgage with new low rates to allow for purchasing a new home that may offer wish list items such as upgrades or more space.
The approach the Canadian Government has taken during this time combined with the rates being offered by the Bank of Canada currently hopefully will result in a healthy return to normal and an active and healthy market.
We truly wish we had a crystal ball so we could offer a clear and accurate picture of what will be in future months. What we can offer is that we are here to help with any real estate needs, questions, or concerns you may have during this time. Yes, we love real estate, but our passion is providing 5-star customer service and being a support and informed expert when it comes to real estate so we can help our clients and friends. If you have any questions, or simply want to chat about the current market. Don't be a stranger. Davids & DeLaat are here to help.