The State of Real Estate in Niagara – Market Update July 2023

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Hello, Niagara! 

Shawn DeLaat here with the Davids & DeLaat Real Estate Team with your July 2023 Market Update.

What I’d like to start off with is a little bit of a synopsis of what’s transpired this year. So we started the year off with a slower January and February. Then the government of Canada put out a little memo that suggested maybe they weren’t going to do anything with rates until September or October. What that started to do was give a little bit of confidence to individuals in the real estate market and our spring market turned out to get a little bit of fire. 

Starting in March, the average sale price was $630,000 and then jumped up in April and into May and then even higher in June. So what that kind of did was create confidence in the market again. Well, that confidence in the market also then therefore created some hesitancy by the government and they felt they needed to raise the rates again to stop inflation. But not only that, I also feel they wanted to kind of ‘curb’ the real estate market. That’s caused prices to settle, and we’re now already seeing in June and July that prices are settling for where they were. 

WHAT DOES THIS MEAN FOR SELLERS?

Sellers! What you need to know is that you DON’T want to price your house off the MLS. Huge mistake! When you do that, we’re looking at listings that have been listed for 30, 60, some 90 days, houses that aren’t selling. Not to mention, a lot of those sellers listed just at the beginning of June or maybe the tail end of May, feeling that fire in the market and wanting to catch that. Well unfortunately with the rate hikes, they didn’t catch it and what they caught was a little bit of a drop. Remember, when rates go up, it affects buyers’ borrowing power, therefore allowing them to afford less, therefore not being able to pay as much for some of the houses that are listed.

Also, it creates a little less confidence in the market, therefore making buyers a little more patient, waiting for the houses that are priced right. With that being said, I hate to tell you that a lot of the houses out there on the market right now are not priced appropriately for the current market. So if you are thinking about listing your home there is a strong market but it’s got to be priced correct. Now I also understand there’s challenges, financial struggles, e.t.c., but Davids & DeLaat are always happy to help. I understand people need so much to sell their house, to help them out in certain situations. I also understand sellers need so much to buy their next home. Well, what you really need to do is sit down and evaluate everything thoroughly because now may not be the time.

WHERE ARE WE NOW? JULY 2023 MARKET STATISTICS

July 2023 Market Statistics
July 2023 Market Statistics

WHAT DOES THIS MEAN FOR BUYERS?

What I’m anticipating again is possibly another hike in September, which again is causing some hesitancy. But if you’re a seller looking to make the big bucks, the reason I brought up my little preview of the year is because when the government says hey nothing’s going to happen with the rates, things start to catch fire. 

I feel confident moving forward for next year that we’re not going to see many rate hikes if any. There has been talk of the rates going down…but I’m not putting my money on that. I think everything will just be ‘even-steven’ for the year. What will end up happening is everyone will acclimatize to the new rates, and if you remember what happened in spring of this year, the market caught a little fire. Well, if everything stays even keel, I am pretty confident the market will start to catch a little fire again next year. What does that mean? For some of those who are looking for the extra dollars, maybe next spring might be the time for you. And of course, these are my opinions. I don’t have a crystal ball, but just wanted to share some insight on what’s going on.

RATE WATCH

What I’m anticipating again is possibly another hike in September, which again is causing some hesitancy. But if you’re a seller looking to make the big bucks, the reason I brought up my little preview of the year is because when the government says hey nothing’s going to happen with the rates, things start to catch fire. 

I feel confident moving forward for next year that we’re not going to see many rate hikes if any. There has been talk of the rates going down…but I’m not putting my money on that. I think everything will just be ‘even-steven’ for the year. What will end up happening is everyone will acclimatize to the new rates, and if you remember what happened in spring of this year, the market caught a little fire. Well, if everything stays even keel, I am pretty confident the market will start to catch a little fire again next year. What does that mean? For some of those who are looking for the extra dollars, maybe next spring might be the time for you. And of course, these are my opinions. I don’t have a crystal ball, but just wanted to share some insight on what’s going on.

WHERE WE STAND & WHAT TO EXPECT THE REST OF 2023

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. Buyers are educated and they know what’s going on so they’ll give you a good offer if they feel your house is priced right. PRICE YOUR HOUSE RIGHT and get a sale! BUYERS, GET OUT THERE AND BUY. 

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. 

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