The Niagara real estate market has seen remarkable changes in the last year. In January of 2022, there were only 564 listings on the market, however, as of now that number has grown to 839 - a whopping 48% increase! With 5 months of inventory available, it’s not quite a balanced market yet, but this is an improvement from what it was like this time last year. On average, homes are taking 81 days to sell - which is the longest we have seen in years! If you have been considering investing in real estate or selling your current home, now may be the ideal time to do so.
Sale Prices Vary by Area
The sale price of homes in the Niagara Region has experienced a drastic drop, but each individual area has seen different results. Thorold had the greatest relative decrease of 34.2%, while Niagara on the Lake had only a slight 9.6% drop. This could be a result of Covid-19 restrictions steadily melting away and less people looking for extra space in their homes since more people are working from home less often now. Overall, it's an interesting phenomenon to observe that each city is trying to find its own pace as it copes with a changing economic landscape due to Covid-19, yet still remains mostly even throughout the region as overall average selling prices go down by 25.3%.
Recent Changes to Mortgage Rules and Interest Rates
The Canadian government's decision to reduce the maximum amortization period for those with less than a 20% down payment could have a major impact on potential home buyers in Niagara. While this means larger monthly payments, it also means smaller interest rates over the 25-year time frame. Now more than ever, low interest rates have never been more desirable and beneficial for those looking to purchase a home in Niagara. On top of that, potential news of no mortgage rate increase come June may further benefit those wishing to take advantage of this market. Despite the new set of rules from the Canadian government, mortgage seekers can still feel confident that affordable payment options remain available.
Affordability and Increased Demand
The current market is favourable to buyers, with sale prices decreasing and interest rates remaining generally low. This means that affordability remains high, creating a perfect opportunity for those looking to make their first purchase or upgrade their existing homes without stretching their budgets too thin. The COVID-19 pandemic has inspired an increased demand for more spacious living environments where people can work from home as well; people hoping to take advantage of this rare moment in the housing market with lower prices should act quickly, because competition is also on the rise. Despite the current state of affairs, it is expected that the market will level out soon, so potential buyers should take action while they still can.
In conclusion, the January 2023 Niagara Real Estate Report offers much optimism for buyers looking to enter the market. Prices remain relatively low, and interest-rates hovering near historic lows, although it may not seem that way due to the continuous rate increases following the actual historically all-time low rates; if you look at the history, these rates are still relatively low, and this makes it a desirable time to buy – particularly if you're a first-time homebuyer. One caveat: with more people looking to take advantage of these great deals, competition can be tough, so it still pays to act quickly when considering an offer on a property. To make sure you have the most success in such a competitive and complex marketplace, I recommend enlisting the help of both a reliable mortgage broker and an experienced Realtor. With the right professionals on your side, navigating through any potential minefields should be easier than ever. If you're ready to take this step together, I'm here as well - Jen Bedard at your service! See below all the market reports.