Shawn DeLaat here with the Davids & DeLaat Real Estate Team with your December 2023 Market Update.
2023 YEAR IN REVIEW
Reflecting on 2023, we’ve observed some significant trends in the real estate market. As of December, the inventory levels in the Niagara region have risen, now standing at over 2,600 listings. This marks an increase from the levels we saw at the end of 2022. 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.
WHERE ARE WE NOW? DECEMBER 2023 MARKET STATISTICS
IMPACT ON SELLERS
Looking ahead, 2024 appears to present a mixed bag for sellers. The inventory levels are expected to be higher than in 2023, largely due to properties that didn’t sell in 2023 being relisted. This situation is compounded by homeowners who might face challenges with mortgage renewals, adding to the inventory. Sellers should note that while the overall market might not see exponential price increases, there is likely to be an easier selling climate. Houses priced correctly and well-presented could sell within a timeframe of two weeks to 30 days, a significant improvement from the 30 to 90 days waiting period experienced by many in 2023. However, it’s crucial to price homes realistically to align with the market demand and inventory levels.
ADVICE FOR BUYERS
For buyers, the early months of 2024, specifically January and February, present an ideal window for house hunting. High inventory levels and subdued demand due to colder weather create favourable conditions for buyers. As we move into spring, buyer demand is expected to increase, making it a more competitive season. However, there will still be opportunities, especially for properties that might need some work or are not in prime locations. Well-priced and well-maintained homes are likely to attract multiple offers and sell quickly.
The real estate market in December 2023 is poised at a crucial juncture. The government’s decision to hold interest rates, similar to their stance at the beginning of the year, sets a positive tone for the market. We anticipate a similar uplift in the market as seen in the spring of 2023. However, sellers should be mindful of the higher inventory levels in 2024, which may require strategic pricing.
In summary, 2024 is shaping up to be a balanced market, which personally, I find to be the most favorable for both buying and selling real estate. It’s a market that offers opportunities for both buyers and sellers, with a cautiously optimistic outlook for the year ahead. I believe 2024 will outperform 2023, providing a stable and promising landscape for real estate endeavors. Wishing everyone the best for the upcoming year!
Contact us to discuss a selling strategy that’s custom fit for your home. Visit us on Youtube to learn more about these changes or schedule your free home evaluation to find out what your home could sell for in today’s market.