Lots of home buyers wait on the sidelines waiting for the right time to purchase and with inventory up and prices down in Niagara Region, opportunities may be appearing.
More Inventory – Prices Down
According to a REMAX REPORT the average sale price in the Niagara housing market decreased by 12.3 per cent between 2022 and 2023 (from $798,079 in 2022 to $700,052 in 2023), while the number of sales decreased by 7.4 per cent (from 5,862 in 2022 to 5,431 in 2023). The market is currently a buyer’s market, which is expected to continue into 2024.
The Niagara Association of REALTORS® reports listing 882 residential properties in January 2024 up from to 771 in January 2023.
Neighbourhoods
In 2024, the top three most desirable neighbourhoods in Niagara are anticipated to be Beamsville/Grimsby, Crystal Beach/Ridgeway, and St. Catharines. When it comes to trends in liveability, buyers in the region are primarily attracted to larger lot sizes, as well as building amenities (if purchasing condominiums).
Property Types
The property type that’s driving the most demand in the region is single-detached houses. First-time buyers are drawn to the region for its relative affordability primarily looking for homes within the $500,000 – $600,000 range. The condo market is also being drive primarily first-time buyers, alongside investors, looking for homes within the $450,000 – $500,000 range.
Trends for 2024
Top Trends:
-Niagara is anticipated to be a buyer’s market in 2024
-Single-detached homes are expected to see the most demand in this region
-Interest rates continue to be the most factor impacting the local market
-Non-essential properties that are disposable in nature, especially those that were over-sold and speculated upon during the pandemic like cottages are likely to see the biggest price drops
Pre-Construction Firesales Will Increase
In a report by Zoocasa, an expected slowdown in the pre-construction industry will continue through 2024. According to the Canadian Home Builders’ Association, 37% of builders cancelled projects in Q3 of 2023 and 65% said interest rates are causing them to build fewer units. “This lack of builder confidence is reducing housing starts and in the mid to long-term, this will exacerbate the undersupply issue in Canada.
Conclusion
Not only is inventory increasing, but home prices are predicted to continue downwards for 2024, will you purchase in this season or is it still time to wait and see?
