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When it comes to the real estate market in a particular location, there are a lot of things that can affect how that market performs. Whether it succeeds or fails in the sense of strong prices and plenty of inventory and options will depend on a number of factors. With that in mind, there are some things to consider when it comes to the Niagara, Ontario real estate market. The careful consideration of how the market is performing and where it may be headed in the future are great ways to determine whether now is a good time to buy or sell a home. Here are the latest stats, trends, and considerations.
Prices Are Rising in the Niagara, Ontario Market
Right now, home prices in Niagara, Ontario are on the rise. They have gone up more than 25% in the last year, and that means sellers can expect to get more for their homes, overall, than they would have before. The prices are going up because of demand, as more buyers are moving into the area and looking for great houses. Most monetary issues are about supply and demand, and real estate is no exception. As the home prices continue to rise, demand will eventually fall because the prices will be higher than most buyers want or can afford. But there is still plenty of room in the Ontario market in the Niagara area, so that correction may not begin for some time. That is good news for sellers and homeowners, but not as welcome news for buyers who may want a deal and wish for prices to be lower than they currently are.
Home Prices Look to Stay Higher in the Coming Years
Buyers who are serious about getting into the market would be wise to go ahead and do so, since there is no evidence that the market will change and prices will drop anytime soon. Instead, the current thinking of professionals who analyze the market is that the prices will stay the same or continue to rise, because of the continued high level of demand that is taking place. There is a great deal of growth in that area, and when there is a lot of growth there is a lot of demand. People want houses, and they are willing to pay more for them because they want a quality home in the location they love. Sellers who are interested in getting their homes on the market have time to do so, but eventually things will change. With that in mind, most sellers will want to get their homes available for sale sooner rather than later, in case of unanticipated market corrections.
Interest Rates are Starting to Go Up Now
Because of the number of buyers in the market and the way that helps to strengthen the economy, the interest rates buyers are being asked to pay are also going up. They are not high yet, but they could rise further in the future. That will slow down the growth of the market, potentially, although there is no indication that the market will be slowed down too much. As long as the rates don't rise beyond what buyers feel comfortable with, there should be no issue with a slightly higher rate.
Many buyers will also save up and pay cash, or they will put a significant portion of the purchase price down on the home. That makes interest rates far less of a factor, or in some cases not a factor at all. With that in mind, buyers can continue to purchase Niagara, Ontario homes. There is plenty of good inventory at the current time, and that will help buyers get what they need so they can find a home they love. It is less helpful for sellers who may see their home overlooked for a different one. With a good real estate agent, though, both buyers and sellers in the Niagara market can have the best possible experience with their real estate transaction.
Justin Havre REALTOR®
Justin Havre & Associates