Niagara Real Estate Market Update: Spring 2025

If you’ve been wondering what’s happening in the Niagara real estate market lately, you’re not alone. As we move through spring 2025, the landscape here is shifting — and depending on whether you’re buying or selling, that can mean opportunity or challenge.

March 2025 brought some surprising numbers. Home sales across the Niagara Region dropped sharply, down 42% compared to March 2024 — the slowest March we’ve seen since 2009. Year-to-date, sales have slipped about 40% from last year.

Prices have also softened. The average sale price in March was $679,093, about 5% lower than the same time last year. So far in 2025, the year-to-date average sits at $669,903, a small 1.8% dip compared to early 2024.

More Homes, Longer Waits

The number of homes for sale is slightly higher than a year ago, with 3,153 active listings in March. Plus, it’s taking longer for homes to sell: there’s now 6.7 months of inventory on the market, compared to 3.8 months a year ago. That’s a strong signal that buyers have more choice and sellers need more patience.

Who’s Buying Right Now?

Despite slower sales, some buyers are actively taking advantage of the market:

• First-Time Buyers: Many are eyeing detached homes around the $500,000 mark, lured by lower prices and better inventory.
• Retirees: Downsizers are targeting bungalows and townhouses priced between $800,000 and $1 million, especially close to amenities.
• Move-Up Buyers: Families looking for more space are investing in larger homes or new builds — again in that $800,000 to $1 million price range.

What’s Ahead for 2025?

Even with today’s slower pace, industry experts are cautiously optimistic. Forecasts predict a 2% increase in average home prices and a 4% rise in sales volume over the rest of the year.

However, uncertainties like new U.S. tariffs are making some buyers hit pause, preferring a “wait and see” approach before committing.

What This Means for You

• Buyers: If you’re house hunting, this is a great time to take advantage of softer prices and less competition. There’s more room for negotiation.
• Sellers: Pricing your home competitively is crucial right now. Homes that are priced right — and well-presented — will still sell, but it may take a little longer than it did during the boom years.

A lot of information is out there right now and we are here to help you process it.  We would love to get together and talk all things real estate.