Between April and May the local HPI benchmark price dropped by 3 per cent. Photo credit: Shutterstock/Laura Gangi Pond
After falling for the first time since July 2021 the month before last, between April and May 2022 the local Housing Price Index (HPI) composite benchmark dipped by 3 per cent, going from $814,600 to $790,500.
Niagara Association of Realtors president Jim Brown said the latest figures continue to suggest a “trend toward a buyer’s market”.
“This trend is backed by increased inventory and a reduction in the number of sales months over month,” said Brown in a media release earlier this week. “Although the HPI Benchmark Price shows strong growth, year over year, this indicator continues to fall from a record high in February of this year.”
Calculated using a sophisticated statistical model that considers a home’s quantitative and qualitative features, the HPI provides a more stable price indicator than average prices, as it tracks changes to ‘middle-of-the-range’ or ‘typical’ homes and excludes extreme high-end and low-end properties.
The HPI composite benchmark property for Niagara is currently a 1,276 square foot home between 51 to 99 years old with three bedrooms and two bathrooms.
For the second month in a row, Pelham saw the largest raw figure decrease, with its HPI price dipping by nearly $85,000 from $1,111,400 in April to $1,026,500 in May. Lincoln also saw a massive decrease month-over-month, going from an HPI benchmark of $1,003,300 to $937,500. St. Catharines and West Lincoln saw similarly drastic dips relative to their community’s respective benchmark.
But prices didn’t decrease everywhere across the region.
Prices actually increased between April and May in Niagara Falls (3 per cent), Thorold (3.9 per cent), and Port Colborne/Wainfleet (4.3 per cent).
Down from 707 the previous month and 947 the same time last year, 595 properties changed ownership in May.
The average number of days on the market increased from 14 to 15.