Our Real Estate market has stabilized after a turbulent few years of unprecedented shifts. From huge bidding wars and price growth in 2016 and early 2017, to a grinding halt last spring, largely due to the Ontario Fair Housing Plan, government intervention and homes reaching record high prices, Niagara and Toronto real estate markets have achieved a magical soft landing. The demand from Toronto and out of town buyers has decreased significantly, and the locals are coming out of hiding and thinking of moving again.
Prices are continuing to rise, albeit more modestly and houses are continuing to sell with higher days on market as opposed to the frenzy we experienced in the last few years. There is an increased demand in the lower more affordable price points, while higher end newer homes have decreased in price due to the oversupply and lower demand. Sellers are still getting great prices for their homes and buyers can now offer on a home without competing against 10 other parties (most of the time), life is good. Now is a great time to buy and sell in Niagara as our market continues to represent incredible value as compared to our GTA and Hamilton counterparts both from an investor and residential perspective.
In terms of future catalysts, the US is projected to increase interest rates this year and likely several times next year. Our Canadian banks will likely follow suit, and this will make borrowing more expensive. There will be continued pressure at the lower price points, but with a large onboarding of inventory in the summer months, it will be possible for many to secure a home without competing and with conditions. There are currently low vacancy rates in Niagara, and rents continue to increase, so maybe it’s time to consider buying an investment property. We are also seeing new construction rebound as the price gap between resale and new construction prices decline – with many new subdivisions in Niagara and more coming online it’s a great time to be shopping for a brand-new home as well.