Bad news for the Niagara housing market continued in September, according to the Niagara Association of Realtors.
Sales actually fell in the Niagara Region in September compared to August, despite the typical back-to-school market uptick real estate agents typically expect to see in September.
In September, there were 500 sales across Niagara Region, which is down from 532 sales in August.
The average amount of days it is taking to sell a home in Niagara Region was largely flat from August to September, decreasing from an average of 48 days in August to 47 days in September.
More houses did come on the market in September compared to August, which is as to be expected, but this did not translate into more sales.
The total number of new listings amounted to 1,738, a 22.8 per cent surge from August.
“While we did see the typical surge in fall listings, buyers responded with continued caution,” said Lisa Taylor, Chair of the Niagara Association of Realtors. “Even a recent interest rate reduction wasn’t enough to overcome the ongoing economic uncertainty and affordability concerns weighing on consumer sentiment.”
“For sellers, pricing ahead of the market is now critical – not just to align with current value, but to anticipate continued downward pressure as we move into the winter months.”
The benchmark price in Niagara Region for September was $595,800, a decrease of 2.3 per cent compared to August. It is the first time the benchmark price has dipped below $600,000 in the area in years.
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 408 new homes having been put on the market in September. The second highest came from Niagara Falls, with 345 new homes on the market.
In terms of benchmark prices in September, the highest benchmark price in Niagara Region was found in Niagara-on-the-Lake, at $916,300, while the lowest benchmark price was found in Welland, at $509,000.
In terms of average days listings were on the market for, the fastest selling time was in West Lincoln, with homes selling in an average of 32 days. The longest selling time was in Fort Erie, with an average selling time of 73 days.
While the housing market typically sees an uptick in both September and October due to the back-to-school season, September’s disappointing numbers indicate that sellers could be in for further disappointment once October’s numbers are released.
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.
