Shawn DeLaat
The nice weather is coming but there’s a chilly breeze in the Niagara Region Real Estate Market!
WATCH: The State of Real Estate in Niagara – Market Update for April 2022 with Shawn de Laat
What we experienced in Jan/Feb/March was an ultra intensified market where sellers were pricing homes well below market value, getting exponentially over the asking price, creating bidding wars and a lot of confusion for buyers.
Back in February we already knew that there was a shift coming. We saw larger than usual amounts of inventory hitting the market for February and in March, we saw even more inventory.
With the announcement of the foreign buyer tax and the higher interest rates coming, the frenzy has subsided and a “cooling” period has started.
This is exciting news for our buyers.
ADVICE FOR HOME BUYERS IN NIAGARA
There’s a lot of hesitancy with buyers right now because they’re waiting for prices to decrease. We encourage you to look at it this way: There’s an expectation that the housing market is going to crash, and that just doesn’t look like it’s the case. Prices may decrease on a slow roll over the next year or two, but even that is uncertain.
What we DO know for sure is that interest rates are definitely going to rise this year and into next. This is something to take into consideration because while you may pay slightly less for a home 12 months from now, unless you’re an all cash buyer, you’ll be paying more in interest on your mortgage.
So if you’re a buyer, actively looking but hesitant, my suggestion to you is to lock into an interest rate for the next 90 days, and get out there to start looking at houses. Inventory has started to open up, there are a lot of beautiful Niagara Region homes for sale right now, and as an added bonus, you’ll likely avoid a bidding war.
If you’re just getting started in your home search, download our FREE Buyers Guide full of tips, worksheets, and information about first time home buyer programs available in Canada.
Looking for a home in Niagara? Never miss another listing! Sign up to receive new listings daily – exactly what you’re looking for, straight to your inbox, every day!
ADVICE FOR HOME SELLERS IN NIAGARA
If you’re getting your home prepared to sell and you were excited about the idea of multiple crazy offers over your asking price so that you could cash in on the boom, I have some disappointing news for you; that ship sailed and you missed the boat.
Home prices are still quite high in Niagara and with the right pricing strategy, you’ll still see incredible value for your home. You just won’t see the frenzy we saw last year and early this year.
Reach out to a member of the Davids & DeLaat Team today for a FREE home evaluation & to discuss a pricing strategy that works for you!
As inventory increases, the process of getting your home ready for market is more important than ever to help you stand out from the crowd.
As you start to prepare try giving your home a deep spring cleaning, a fresh coat of paint and spend some time on landscaping to boost your curb appeal.
NIAGARA HOME SELLERS WHO ARE ALSO NIAGARA HOME BUYERS
Welcome. Your time has come.
We are starting to see a diminishing (though not completely) demand from out of town buyers, with locals from Niagara starting to come out of the woodwork. They’re entering this market now because they like to see the traditionally priced homes, knowing they can make an offer at asking price (in some cases slightly below) and add conditions such as financing and inspections. This predictability helps buyers to plan, budget and avoid too large of a gap in between the sale of one home and the purchase of the next.
You won’t have to worry about the market balancing and not getting those crazy over asking offers on the sale of your home in order to afford the next one either. The home you’re going to buy next is in the same situation, meaning they’re not likely getting multiple offers either and you won’t necessarily have to compete with ridiculous offers for $200,000+ over the asking price.
Now, there will still be multiple offer scenarios on certain homes, so be prepared. If you have a home in a great location with a pool, all done up, by this summer you should garner plenty of interest because there’s more demand for properties with those types of features in this region.
Regarding the “list it low, sell it high” tactic, I think it’s safe to say that’s a strategy is no longer as effective. Several veteran agents in our market are starting to move away from that and price homes more appropriately to the market, often with a 48 hour irrevocable which is just a fancy way of saying that when the offers come in, the seller has 2 days to respond.
The pending election could create some hesitancy in the market, but given the balancing as well as the influx of local buyers, we’re confident this summer will bring a strong and balanced Niagara Region real estate market.
REAL ESTATE ACTIVITY IN NIAGARA APRIL 2022
FREE HOME EVALUATIONS IN THE NIAGARA REGION
Your home has likely built up a substantial amount of equity in the last year alone! Curious what it’s worth today? Book a free, no strings attached home evaluation with a member of the Davids & DeLaat team. Our free home evaluations include a comparative market analysis to give you an idea of what homes just like yours are selling for in your immediate area, a real estate consultation to learn more about your goals and how we can help you, PLUS they’re 100% free with ZERO pressure and ZERO obligation to sell your home.
