Davids & DeLaat Team
Niagara Real Estate: What to Expect as We Enter 2026
As we step into 2026, it’s important to acknowledge where the Niagara real estate market has just been — and why this year feels different.
2025 was, by nearly every measure, one of the most difficult years our market has experienced.
Record-breaking inventory levels collided with historically low demand, creating a prolonged imbalance that defined the year from start to finish.
A Tough Year to Close the Books On
Throughout 2025, Niagara saw an unprecedented number of homes for sale paired with muted buyer activity.
While the spring brought a brief lift in momentum following interest rate holds, that optimism faded quickly. When rate cut discussions began, many buyers chose to pause rather than act, waiting for further clarity.
The result was a market that stalled.
The final six months of the year were particularly challenging, with notable price declines across many segments. High supply and low demand placed sustained pressure on sellers, pushing 2025 into the history books as one of Niagara’s weakest real estate years.
Simply put: there were too many homes and not enough active buyers.
Where the Market Stands at the Start of 2026
As January begins, there are early signs of stabilization — with a few important caveats.
Inventory levels are currently lower than what we saw through much of last year. However, this is partly seasonal. Many sellers who paused their listings over the holidays are expected to return to the market as we move closer to spring.
At the same time, we are seeing a mild but noticeable uptick in demand.
Open house traffic has improved. Showings are increasing. And well-priced listings are beginning to move more quickly than they did throughout most of 2025.
This isn’t a market shift — but it is a signal.
What Sellers Need to Understand in 2026
For sellers, optimism needs to be paired with realism.
While conditions are improving slightly, a sharp rebound in prices is not on the horizon. Inventory is expected to rise as the weather improves and more homeowners prepare to list.
What has changed is buyer confidence.
Prices have adjusted downward to levels that feel more accessible, and with interest rates expected to remain relatively stable, buyers are beginning to re-engage.
For sellers, this makes pricing the most important decision once again.
Stretch pricing will not work in 2026. The market will not reward overconfidence. However, homes that are priced correctly from day one are likely to sell far more efficiently than they did last year.
Where sellers previously faced 60 to 90 days on market — even with aggressive pricing — 2026 could bring a healthier window of two to four weeks for properly positioned homes.
The goal this year is not to chase the market, but to meet it.
What Buyers Can Expect This Year
For buyers, 2026 presents a meaningful window of opportunity.
Prices remain soft and attractive across Niagara, and inventory will continue to offer choice. First-time buyers, in particular, are re-entering the market as affordability improves.
To put this into perspective:
- Entry-level homes are available under $400,000
- North-end bungalows in St. Catharines can be found under $600,000
- Larger family homes around 2,200 square feet are trading near the $800,000 range
- These are price points that felt out of reach only a few years ago.
With stable rates and improving selection, buyers who act thoughtfully and prepare properly are well positioned in this market.
