Wondering what the state of the real estate market is right now compared to the huge year we had last year? Here is your Revel Niagara Real Estate Market Update for the first half of 2018.
The Current State of the Niagara Market
In 2017, we had an “average days on market” as low as 15 days in some areas. Presently, we are averaging around 30 days on the market, which is still lower than we have historically had. For as long as we can remember, we sat at a 60-day average for a long time.
There are fewer sales this year from last year, and days on market has almost doubled. There are a similar number of new listings to last year. However, with longer days on the market, there’s the appearance of a lot more inventory.
Stress tests are having an impact on affordability for the majority of buyers. Many buyers reduced their budget, causing significant demand for entry-level and moderately priced homes under $400k. We are still seeing some offer presentations and competing offers on lower-priced homes, but not at the same level as 2017.
Last year the majority of our listings were seeing over 10 offers. Competing offers right now might mean 2 or 3 offers.
Predictions for the Rest of 2018
There will be continued pressure at the lower price points, but with a large onboarding of inventory in the late spring and summer months it will be possible for many to secure a home without competing and with conditions. It’s a great time to buy right now.
With the upcoming provincial elections, there is already talk about some of the current laws changing. For example, there is talk of the foreign buyer tax possibly being reversed. We will have to wait and see what happens.
We anticipate housing prices to remain relatively stable without any more government intervention. Just keep in mind that last year’s market was unprecedented and not necessarily a great place to make a comparison, as it’s not a likely indicator of things to come.
The demand from Toronto and out of town buyers has decreased significantly. You can see this especially in a decrease in new construction sales: last year a lot of investors from Toronto were buying multiple units, and this year things are back to normal.
Rental markets – there are very low vacancy rates in Niagara, and rents continue to increase, so maybe it’s time to consider buying an investment property.