The Niagara real estate market continues to soften compared to statistics from a year ago, according to the Niagara Association of Realtors, meaning the so-called buyers’ market is still very much a reality.
In June, 1,717 residential properties were listed in Niagara, compared to 1,907 the month prior.
In addition to that dip, the average amount of time it took to sell a home in Niagara in June was 43 days, which is up 13.2 per cent from May.
“June’s numbers show Niagara’s market adjusting in real time,” said Niagara Association of Realtors Chair Lisa Taylor. “Fewer new listings and softer sales kept conditions steady overall, with the sale-to-new-listings ratio nudging up to 33 per cent – a minor move toward balance, but the market remains firmly in buyers’ hands.”
Taylor suggested that conditions could change later this summer with a Bank of Canada rate cut. The next decision on whether the Bank of Canada will keep interest rates steady or cut them will be made on July 30.
“A rate cut could give buyers the confidence to jump in and help absorb some of the excess inventory sitting on the market,” added Taylor.
The total number of units sold in Niagara Region in June was 570, compared to 602 in May.
The benchmark price for a home in Niagara Region also continues to fall. In June, the benchmark price was $613,400, which was down 2.4 per cent from May.
A benchmark home is a home between the ages of 51 and 99 with three bedrooms and two bathrooms.
The highest number of new listings in Niagara Region came from St. Catharines, with 388 new homes having been put on the market in June. The second highest came from Niagara Falls, with 336 new homes on the market.
In terms of benchmark prices in June, the highest benchmark price in Niagara Region was found in Niagara-on-the-Lake, at $944,600, while the lowest benchmark price was found in Port Colborne/Wainfleet, at $525,700.
In terms of average days listings were on the market for, the fastest selling time was in Thorold, with homes selling in an average of 30 days. The longest selling time was in Niagara-on-the-Lake, with an average selling time of 76 days.
With trade uncertainty unlikely to clear up in the short term, the expectation is for the market to remain soft for the foreseeable future.
Jay Goldberg is the Canadian Affairs Manager at the Consumer Choice Center. He previously served as the Ontario Director at the Canadian Taxpayers Federation and a policy fellow at the Munk School of Public Policy and Global Affairs. Jay holds a Ph.D. in Political Science from the University of Toronto.
