Housing prices up but still a bargain

Average cost is up in Niagara but lower than the GTA

The average sale price for a residential home in Niagara has increased by more than 20 per cent this January, compared to January 2016, according to the Niagara Association of Realtors.

The group released statistics this week showing the average sale price averaged $337,888 across Niagara last month, up from $273,000 last January.

“We are the most affordable in the country right now,” said association president Patrick Dummitt.

“You can move out of Hamilton with an average price of $480,000 and grab something in Niagara for $330,000 and there’s a $150,000 difference for a 30-minute, or 20-minute commute in some cases.”

January 2017 statistics also show the number of sales are mostly up across Niagara, while homes are not staying on the market for nearly as long as last January.

Dummitt said the amount of foreign

investment in Niagara is a factor in how hot the real-estate market is in the region.

“There’s a lot of Asian money coming into the area.”

The large increase in the average sale price of homes follows suit with the skyrocketing home values in the Greater Toronto Area.

“Usually what happens in Toronto we follow suit within about six months,” said Dummitt.

“It has taken a little longer this time, but people have discovered Niagara. Especially now with the new commuter systems happening, the announcement of the permanent GO system coming — that’s all taking effect as it has in every other area where that has been announced over the years.”

Dummitt said he believes home values will continue to increase in Niagara. “From 2015 to 2023, our prices will most likely have doubled.”

Niagara Regional Chairman Alan Caslin said he’s not surprised by an increase, but is surprised by how “dramatic” the increase is.

“A lot of great things are happening in Niagara right now that are causing people to have a closer look at us and perhaps want to locate down here,” he said.

“With the electronic age, we know now that you can work from home much easier than ever before and that living in Niagara Falls, St. Catharines or Port Colborne, you can still hold a job by telecommuting to Hamilton, Oakville or even Toronto.”

Caslin said people now consider where they live is “more about the quality of life that you experience, rather than where you work.”

He also said Niagara is seeing a “dramatic” increase in business activity and inquiries in Niagara for people considering the region for a new business.

“They see the value in what we have to offer in terms of our housing, our land, our infrastructure. Holding our tax rate at bay is (also) important.”

Caslin said people are also moving to Niagara in preparation for when year-round GO train service is scheduled to come to the region in 2021.

“It’s not just the GO train. The inter-municipal transit system that we’re working on. The fact now that we’ve never before had such cooperation between all four levels of government, right from the feds right down to the municipalities, where we’re working together to achieve goals like we never have in the past.”

He said while the average price of a home is increasing in Niagara, “they’re still much lower than anywhere else in the (Greater Toronto and Hamilton Area).”

“It’s a real buy. When you think about where Niagara is, between lake to lake, the border of the U.S. — Niagara is the place to be. It’s the hidden gem that people are now starting to find and want to be.”