Marketing Coordinator
Hello, Niagara!
Shawn DeLaat here with the Davids & DeLaat Real Estate Team with your June 2023 Market Update.
A lot of interesting things happened over the past month in June! First, we saw the Bank of Canada raise interest rates to 4.75%, which translates to about 6.3% for a fixed rate mortgage, as well as roughly around 6.8% for a variable mortgage. So this means mortgage rates are getting pushed up quite a bit higher, which may suppress some demand of buyers. As well, we heard that inflation got pushed down to 3.4%. There is an anticipated rate hike potentially in July with this new inflation information. We may see them hold the rate (fingers crossed) and then the Bank of Canada will circle back again in September if they don’t do anything in July.
In the Niagara market interest rates went up, curbing some demand. However, we are also in summer which is notoriously a little slower for activity because a lot of people are out on vacations. So therefore, buyer demand will be diminished a little bit.
WHAT DOES THIS MEAN FOR SELLERS?
More importantly, what we’re now seeing is higher priced homes. Sellers are trying to shoot the moon and take it to the next level and unfortunately that’s not going to happen. I don’t know exactly what’s happening with sellers, I’ve talked to a number of agents and a lot of them are looking at the MLS, looking at what’s going on in their neighborhood and pricing their houses according to what’s currently listed on the MLS. Cautionary tale, this is NOT the proper way to price your house. Most importantly, anyone can ask anything they want for their house, but what are houses selling for? The sold data tells a little bit of a different story. So, if you’re a seller thinking about selling your house this summer, the market is strong, there is some demand, but you have to be priced appropriate to the market. Don’t look at the MLS and what others are pricing. Lean on an agent, get the market data, and determine a price that’s reasonable for your home.
WHERE ARE WE NOW? JUNE 2023 MARKET STATISTICS
WHAT DOES THIS MEAN FOR BUYERS?
Buyers, because of this slower demand, because people are on holidays, because of these interest rates, there could be some great opportunities for you this summer as far as getting some good buys. Sellers may be getting a little anxious as their days on the market increases or some sellers may come to the market with aggressively priced houses allowing you for a great opportunity to get into a home.
WHAT DOES THE MARKET LOOK LIKE?
So we will keep you posted on what’s to come in the next coming months. Fingers crossed, July does not provide us with another rate increase, and then it will be smooth sailing and a little bit of a more balanced market in the favour of buyers and sellers.
WHERE WE STAND & WHAT TO EXPECT THE REST OF 2023
Each market is different within the Niagara region right now. Fonthill and St. Catharines’ North End is performing very well. Niagara Falls currently has very high inventory levels, while Fort Erie is very, very slow.
If you want more information, or a little more thorough detail on anything, please don’t hesitate to reach out to the Davids & DeLaat Real Estate Team. We’re always available to help you out!
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.
