Davids & DeLaat Team
Niagara Real Estate: The 2025 Year-End Market Wrap-Up
As we close the books on 2025, one thing is clear: this was one of the most challenging years the Niagara real estate market has ever experienced.
Two records were set this year — and neither favoured sellers.
A Year Defined by Imbalance
In 2025, over 16,000 properties were listed across the Niagara region, the highest level of inventory our market has ever seen. At the same time, we recorded approximately 5,417 total sales, the lowest number of annual sales in Niagara’s history.
That imbalance tells the entire story.
This was not a seller’s market. It wasn’t even close.
Sellers were competing against unprecedented levels of inventory, and that competition put sustained downward pressure on pricing throughout the year. While prices softened gradually early on, the second half of 2025 saw more rapid declines, particularly as listings continued to stack up and buyer urgency faded.
Simply put: too many homes, not enough buyers.
What Happened to Prices?
With inventory at historic highs, sellers were forced into competition — and competition leads to price adjustments.
Throughout 2025, we saw:
- Increased days on market
- More price reductions
- Aggressive re-pricing toward year-end
- Buyers gaining leverage in negotiations
Homes that were priced aspirationally early in the year often ended up chasing the market downward. In many cases, sellers who resisted realistic pricing lost more money over time than those who priced correctly from the start.
In a declining market, overpricing isn’t a strategy — it’s a risk.
Looking Ahead to 2026: What Sellers Need to Know
As we move into 2026, there’s one certainty: inventory will remain high.
Many sellers who did not achieve a sale in 2025 will be returning to the market. At the same time, we’re seeing:
- Renewals creating affordability pressure for some homeowners
- An increase in bank-directed sales as owners who bought near peak pricing struggle to carry their homes
The result? Even more competition among sellers.
For anyone considering selling in 2026, success will come down to two factors:
- Pricing correctly from day one
The market has shown us very clearly that trying to “test” a higher price in a declining environment almost always backfires. By the time reductions happen, the market has often moved lower again. - Presentation matters more than ever
With so many options available, buyers gravitate toward homes that are both well-priced and well-presented. Properties missing either piece are likely to sit.
It’s not about getting the price you want — it’s about getting the price the market will support.
What Buyers Can Expect in 2026
For buyers, the outlook is far more optimistic.
2026 is shaping up to be another strong buyer’s market, with:
- A wide selection of homes
- Sellers who are increasingly motivated
- More aggressive pricing across many segments
- Potential for continued softening in some areas
While there is some discussion of a mild uptick in demand, it is unlikely to be strong enough to absorb the volume of inventory expected next year.
That means buyers will continue to have time, choice, and leverage.
Opportunities will exist — particularly for buyers who are prepared, patient, and strategic.
The Bigger Picture
2025 will be remembered as a year of extremes:
- The most listings Niagara has ever seen
- The fewest sales on record
That combination made it one of the most difficult markets for sellers and one of the most advantageous for buyers in decades.
Heading into 2026, the fundamentals remain similar. This is still a buyer-driven market, and success on either side of the transaction will depend on strategy, realism, and expert guidance.
Sellers: Price accurately and prepare thoroughly.
Buyers: Stay engaged — opportunity is on your side.
If you’re planning a move in 2026 and want to understand how these market conditions apply to your specific situation, now is the time to start the conversation.
