The State of Real Estate in Niagara – Market Update May 2025

Hey, Niagara! Here’s your May 2025 market update.

Let’s just say it: May was a month of mixed signals. On the surface, we saw what looked like a promising spring market—lower interest rates and warmer weather—but the expected boost in activity never materialized. Instead, we saw an influx of listings with a noticeable lack of buyer demand. The result? A market that feels… stuck.

A Market Stuck in Neutral

Despite lower interest rates, buyer activity didn’t pick up the way sellers had hoped. Many homeowners had banked on this spring as their chance to list and cash in—but the reality didn’t match the optimism. Instead, we’re seeing growing inventory with very little urgency from buyers.

Sellers have the listings. Buyers have the leverage. But neither side is taking action, and that’s created a noticeable stall. Prices aren’t climbing, but they’re not falling either.

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First-Time Buyers Are Struggling

One of the major barriers? Affordability. A recent CMHC report revealed that nearly 80% of first-time home buyers are now relying on co-signers to get into the market. That tells us a lot. The traditional path to homeownership—especially for young couples—is getting harder to walk. And without those entry-level buyers fuelling the market from the bottom up, movement slows across the board.

Pricing Matters—More Than Ever

There’s a hard truth sellers need to hear: pricing your home based on last year’s expectations just isn’t going to work. The properties that are priced right are still selling—often within 30 days. The rest? They’re sitting.

The market is being led by savvy move-up buyers—those who need to sell their home in order to buy. These buyers are educated, realistic, and ready to make deals happen. They know their home’s current value, and they’re shopping accordingly.

The Real Driver? Economic Confidence

We’re in a holding pattern right now. Everyone seems to be waiting—for what, we’re not sure. But one thing is clear: consumer confidence is low. Until there’s a broader sense of economic stability and positivity, we don’t expect major changes.

Another growing concern? Mortgage renewals. With higher rates kicking in, more homeowners may be forced to sell, adding even more inventory to an already saturated market

Looking Ahead

Yes, homes are still selling. And yes, there are opportunities—for both buyers and sellers. But expectations need to shift. This is no longer a market where you can list high and hope. Strategic pricing and real preparation are what’s working.

As we head into June, we’ll be watching buyer sentiment, inventory levels, and whether renewed affordability challenges bring more forced listings to market.

If you’re planning to make a move this summer, now’s the time to talk strategy.