The latest snapshot of Niagara’s housing market saw listings and sales for July come in significantly higher than a year ago. Last month, Niagara Reatlors® listed 1280 residential properties compared to 1174 in July of 2022. At the same time, sales also increased by 35% from a year ago.
This could be regarded as a sign that households have somewhat adjusted to higher interest rates after Canada’s central bank, still battling stubborn inflation, recently rebooted its cycle of interest rate hikes. Nevertheless, the sales momentum that Niagara experienced in late spring is starting to cool down after a hot start to the year.
Month-over-month sales figures show that July marked the second month in a row for lower sales. Last month’s sales were down almost 17 per cent from 658 in June and nearly 33 per cent from 750 in May. What is unclear is how much of this decline should simply be chalked up to the usual seasonal slowdown for this time of year, as July is the first full month of summer vacation.
Year-over-year, the average price for a house in the area was a bit lower at $640, 000 in July, down 3% over the same month last year. However, last month’s median house price at $720,223 was actually fractionally higher by 0.03% compared to last year.
We’re over the halfway mark and 2023 is shaping up to be a complicated year due largely to an economy that is struggling to find balance. Once uncertainty around the direction of interest rates is removed, all forces point to a real estate market looking to regain its bounce from its August dog days.