CANADA - The Niagara real estate market is on the brink of transitioning into a new phase. While the area has benefited from historically low-interest rates, the low rates soon end as inflation increases. As a result, house prices in the Niagara region will rise at an average rate of 14%.
The average house price in Niagara Falls is at a record high. However, the number of listings for sale in the Niagara region has decreased by 22.8% in the past six months. The average time a listing spends on the market is just 21 days. The median list price is $125,000. In the Niagara region, 23 listings sold over the asking price, and two sold below the list price. The majority of residents in the area earn less than $50,000.
The Niagara area is home to 20 supermarkets, a handful of restaurants, and coffee shops. Public transportation is limited, though, with only two bus lines in the city. Moreover, there aren't many places to walk to do daily errands. Fortunately, parking is plentiful.
The housing market in Niagara Falls is likely to continue to show signs of a slowdown. The number of existing houses has decreased every month since February 2023. In April, the average home price dropped by almost four percent. The Desjardins Group expects this trend to continue. However, the price decrease is not yet enough to depress sales. The region has an extremely low supply of homes, so a slowdown in the Niagara Falls real estate market is likely.
The entire Canadian real estate market is cooling after the coronavirus pandemic, but there are more economic gains. Once the correction is completed and real estate conditions stabilize, the Niagara housing market could rebound. The average price for a home in Niagara Falls is $134,900.
Home prices are likely to remain above the 2021 peak despite the decline in sales activity. However, the rate of price decline is likely to slow down to just 15 percent. Until then, Niagara Falls' prices will likely continue to rise as demand increases, and prices remain above the trend line.
Assuming that the current trends continue, home prices in Niagara Falls are expected to increase by 12% in 2023. This would be a record high for the city. Those who have purchased homes in the past two years have been fortunate because the prices have remained relatively stable.