The Sizzling Niagara Market

Maybe you saw the article about the market in Niagara.

On May 16, 2016, the National Post published an article entitled, “Don’t look now Toronto homebuyers, Niagara Falls just might be your new suburb.”

Here are some snippets from that article:

  • The writer, Garry Marr stated that in the Niagara Region, “the dollar value of sales in April soared 36.2 per cent from a year ago....” He attributed this rise to a major increase in sales.
  • Patrick Dummitt, president of the Niagara Association of RELATORS® offered that “the whole Niagara Region is up, some more than others.” He credits this rise in sales to prices becoming unaffordable from Toronto to Burlington.
  • Speaking for Niagara Falls, its mayor, Jim Diodati, said that “about 50 per cent of new home buyers come from the GTA, 30 per cent from outside the region and the remaining 20 per cent from people within the existing Niagara region.

Niagara Association of REALTORS® said the following:

  • 895 sales were processed through MLS in April, “…a 20.3% increase in sales over April of last year.”
  • The average sale price for the entire region was “8.8% higher” compared to April of 2015.
  •   “The trend of fewer listings and increased sales continued in April.”

The market is hot for resale’s too

Last year the number of resale homes purchased by out-of-region buyers also increased. According to our in-house records for last year, about 41% of our resale homes were purchased by out of town buyers in Niagara Falls and to a lessor degree but still robust in other municipalities in the region. The majority of these purchases were made by people from the greater Toronto area.

This year, we’ve seen an increase in competing offers resulting in increased sales and prices. On average homes are selling in less time than last year. Still many sellers resist selling as they can’t find a home to buy.

CMHC’s Housing Market Outlook for 2nd Quarter 2016

According to CMHC, “Growing demand for less expensive housing will support the resale market particularly markets in southwestern Ontario and markets bordering the more expensive GTA.” As well, “Ontario home prices will continue to grow at a strong pace in the immediate term but growth should moderate by 2017.”

The Canadian Real Estate Association (CREA)

When greater Vancouver and Toronto average prices “are excluded from calculations, the (National) average is a more modest $369,222 and the year-over-year gain is reduced to 8.7 percent.” In Niagara the residential average in April was $303,805, a gain comparable of 8.8% over April of 2015.

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