As spring unfolds, we’ve seen a predictable increase in housing inventory. Homeowners who achieved sales last year are re-entering the market, and we’re encountering new listings from those facing financial pressures. By mid-April, inventory levels significantly rose.
Looking back, 2023 presented its challenges, notably marking the lowest sales figures since the start of my career in real estate back in 2002. However, as we venture into March, there’s a tangible sense of optimism in the air. Encouraging developments in interest rates and market activities are signalling a more promising year ahead for us all.
The Bank of Canada’s recent announcement to hold interest rates steady, with a potential decrease later in the year, has injected a dose of positivity into the market. This decision is critical as it sets the tone for economic activities, including real estate transactions, and influences buyer and seller confidence.
Throughout the year, we’ve noticed a pattern similar to the previous year, particularly influenced by interest rates. The mid-year interest rates had a noticeable downward push on the market, leading us to what we consider the bottom. However, in the real estate cycle, hitting the bottom usually suggests an upcoming rise, which is what we’re anticipating for 2024.
The current climate, marked by high borrowing costs and economic uncertainty, has led to a noticeable slowdown in house sales. Many sellers opt to delay their plans, looking towards next year as a more opportune time to sell. However, it’s important to note that the Niagara region is experiencing its highest number of listings since the fall of 2014, with approximately 2,800 properties on the market.
It is a buyers market, buyers take advantage of the next few months because this is here now and will be gone by next year. Sellers, be patient, you time is coming again, and we’ll keep you updated!
Our market is still grappling with the consequences of the June and July rate hikes, driving market activity downwards. Additionally, there’s speculation about another rate increase by the end of October.
The average sale price in Niagara reached $715,000 by April, experienced a minor dip in May, then recovered slightly in June to $712,000. As we moved into August, this number decreased to $680,000, a clear indication of how the rising interest rates have weighed on the market.
Right now, in July/August I have to remind sellers, please don’t go to the MLS to price your house. Buyers have more information at their fingertips through the MLS, through the photos, videos, and apps that let them know what your house has sold for. So if you’re trying to stretch the market, you’re not pulling the wool over the buyers eyes.
Demand is picking up and prices are increasing in the GTA due to lack of supply. This is something I’ve been discussing for the past little bit because here in Niagara, what you need to know and understand is this is most likely coming our way. We are starting to experience that in certain price ranges and in certain locations in our region, as supply is now low and demand is high.
Demand is picking up and prices are increasing in the GTA due to lack of supply. This is something I’ve been discussing for the past little bit because here in Niagara, what you need to know and understand is this is most likely coming our way. We are starting to experience that in certain price ranges and in certain locations in our region, as supply is now low and demand is high.
Greetings from the Davids and DeLaat team! The spring season is upon us, bringing along renewed energy and the perfect time for potential buyers and sellers to make their moves in the Niagara real estate market.
