Predictions: Niagara Real Estate in 2022
Month by month Niagara real estate predictions on how the market will adapt in 2022
If you’re a resident here in the Niagara region or if looking to move here, you’re probably trying to determine the best time to buy or sell in 2022 so you can get the best ‘bang for your buck.’ With the ongoing conversations of increased interest rates and housing costs it’s unclear how the market will be, but we have a few predictions to share with you to help make buying and selling decisions.
Uncertainty of Interest Rates
Interest rates in Canada have been low for a while. This Canadian Interest Rate Report shows interest rates in the early 1990s were approximately 10x what they are today. As trends predict, with increased interest rates Canadians are more likely to spend less. In the Canadian Housing Market Trends article from Re/Max the projection for interest rates is set to increase in April 2022. What the uncertainty has called is a buzz around buyers being likely to lock into now interest rates, anticipating higher interest rate that likely will cool the hot Canadian housing market.
In the latest State of Real Estate Shawn de Laat supports the projection of rising interest rates but explains that they will not affect the real estate market too drastically. Saying, “what it will do is reduce some of the buying power pushing buyers into other markets, making Niagara yet another place of desirable, affordable living.” Supported by the Big 6 banks, the Bank of Canada will raise its overnight rate by one per cent by the end of 2022 which is unlikely to be a significant factor on sales or prices.
Residential Housing Prices
The RE/MAX 2022 Canadian Housing Market Outlook projects the average residential home price in Niagara will rise 14 per cent, compared to 9.2 per cent across Canada. This rise in house prices is largely due to inventory. Conrad Zurini, broker of record with RE/MAX, says “The end of the year inventory in Niagara is extremely low, with the region not having seen a year like this in a “very long time.” This means you can expect to stay in a seller’s market well into 2022.
This rise in house prices is largely due to the low inventory and high demand in our region. Most of the demand is driven by those working from home, or working in a hybrid model that allows them to search for homes near highways and within commuting distance to larger cities like Toronto, making cities like St. Catharines or Grimsby are very popular places to move.
New Construction Projects
Another factor to consider when looking at next year’s Niagara real estate market is new construction projects. With new construction inventory to house the demand to buy, we will begin to see a strong market return to Niagara. If you’re interested in getting updated about new construction projects sign up for our newsletter to get updates right to your mailbox.
Buying & Selling: Month By Month
Here Shawn de Laat has outlined his predictions on the Niagara market month by month:
- January/ February: Low inventory on the market with strong demand to buy
- March: Inventory will begin to increase – Canadians prefer to sell their houses when they look the best
- April/ May: The inventory will lighten slightly, and the demand and will stay strong to buy
- June/July/August: Similarly to the 2021 summer, the market will be a little more mellow as buyers may be enjoying the summer
- September/October: Listings will influence the buyer demands for the remainder of the year
Owning A Home In Niagara
If you are looking to buy a home in the Niagara Region, call Davids & DeLaat today. We are dedicated to helping our clients make their real estate dreams a reality. Whether you are a seasoned homeowner or a first-time buyer, we have the necessary skills and the determination to find the right home for you. Contact us today to find out what makes us Niagara Region’s top real estate team!