Over the last 5 years we have continued to hear buyers wanting to hold off buying.
Some have been waiting for prices to bottom out, others are afraid of paying too much. Still others simply feel that it is not a good time to buy in spite of the record low mortgage rates.
Now certainly, there are neighbourhoods in the Niagara Region that have seen a modest drop in prices. The average price for the region, however, has stayed in positive territory.
See below for a closer look.
|Year||Avg. Price||% Change|
|Increase in Average Price from 2008-2012|
Source: Niagara Association of Realtors MLS System
Based on the numbers, the average increase since 2008 is about 2.24% per year. Though below 30-year historical levels of 5.5% nationally, the average price in Niagara has grown.
Average Price Bottomed Out in 2011
The chart also indicates that the regional average bottomed out in 2011 at the lowest average increase of .55%. The two best years are 2010 at plus 4.41% and 2012 at plus 3.23%.
The 5-year increase impacts payments by $103 per month.
If we take the average price of $210,981 in 2008 and contrast it with the average of $233,050 in 2012, the average price increased by 10.46%, or around $22,000. At a low 5-year mortgage rate of 2.95%, the monthly payment on $22,000 is about $103.62, based on a 25-year amortization.
The last 5 years have shown that waiting for prices to bottom out, being afraid of paying too much or believing that it’s not a good time has not worked to the advantage of this type of thinking.
Ask us for specifics about your area or city.