Niagara’s real estate market continues upward trend
Niagara’s real estate market continued to trend in a positive direction as its benchmark price again ticked upward, with gains in sales and new listings.
In its monthly report, Niagara Association of Realtors said the benchmark price of a home rose to $644,700 from $633,400 — an increase of 1.8 per cent month-over-month.
The only municipality that saw a slight decrease was West Lincoln.
Association president Nathan Morrissette said there was nothing “overly shocking or surprising” in the monthly numbers, but it was good to see a “better than expected” April.
“There is more activity now, absolutely, which is evident in the number of sales and the decrease in the days on market,” said Morrissette, noting days on market fell seven per cent, to 40 compared with 43 in March.
“Many buyers have adjusted to the higher interest rate environment. The market assumption is that the Bank of Canada has finishing hiking rates and most are aware of the potential decrease in interest rates coming and that has given them some confidence.”
Month-over-month, sales rose 8.9 per cent to 602 from 553. The number of new listings jumped 19.6 per cent, to 1,396 from 1,167.
Home sales were similar when compared to a year ago, with April’s 602 sales above the 560 from 2023 — a 7.5 per cent rise.
Niagara also saw a substantial 40.9 per cent rise in listings year-overyear, with 1,396 houses placed on the market compared to 991.
Despite the monthly gains, the benchmark price in the region remain slightly below 2023 numbers, with the association reporting a drop of about 1.4 per cent.
However, with each municipality showing variations, several Niagara municipalities saw prices rise yearover-year, including Fort Erie, Thorold, Welland and Port Col- borne/Wainfleet.
Morrissette said the value of Niag- ara is holding strong, with the re- gion continuing to maintain its de- sirability; whereas other regions in the province, such as Windsor, have yet to see market numbers rise.
Realtors are seeing the highest amount of activity in entry-level to middle-level homes.
“Niagara was really put on the map a few years before the pan- demic as many people were moving to Niagara because its proximity to multiple major airports, major cities, the recreation and lifestyle Niagara offers for the value it offers in home prices and work opportunities,” he said.
Niagara is sitting at around four months worth of inventory, which Morrissette said is generally considered a balanced market, but he cautions inventory can be gone “so quickly, as we witnessed a few years ago.”
Last month, the Bank of Canada held interest rates — the last rate increase came in July 2023 — at five per cent. While some buyers have waited for rates to come down, that hasn’t been as evident in Niagara in recent months.
“I anticipate interest rates to drop most likely in June and if that happens, we may see a surge in activity. Buyers are getting smart and getting into the market now in anticipation of the potential market activity,” said Morrissette.
If rates do drop, it could put additional pressure on the market.
Last month, Niagara Falls city council was denied $45 million in funding from the federal government’s Housing Accelerator Fund, which would help construct 1,668 units in three years, and 9,660 in a decade.
Morrissette said that decision was “disappointing as it goes against getting more homes built in Niagara, which we desperately need,” adding if the housing challenges aren’t addressed now, “the government’s goals for housing targets and anticipated population in Niagara could be a real concern for the Niagara market.
“I really would like to see the process streamlined in Niagara by reducing red tape and getting more homes built,” he said.
“Getting all levels of government to work together to achieve these lofty goals that are set to make sure Niagara stays as a top destination and great place for Ontarians to live.”
As it heads into the summer months, it’s hard to forecast what the market will do, but Morrissette realtors are “ready for what comes our way.”