Niagara Region Market Statistics June 2023
The residential real estate market is a dynamic environment, subject to constant fluctuations. Analysing market statistics can provide valuable insights into trends and help both buyers and sellers make informed decisions. In this blog post, we will compare the market statistics from June 2022 to June 2023, shedding light on the changes observed and offering insights into the residential real estate landscape.
One of the crucial indicators of market activity is the number of sales. In the period between June 2022 and June 2023, there was a significant increase of 26.1% in the number of sales. This surge suggests a robust demand for residential properties, signalling a positive sentiment among buyers.
The Home Price Index (HPI) benchmark price is a key metric used to assess the overall price trends in the real estate market. In this case, the HPI benchmark price experienced a decline of 11.1% from June 2022 to June 2023. This reduction can be seen as a correction in the market, where prices have adjusted to align with demand and supply dynamics. The drop in prices may present an opportunity for potential buyers to enter the market or upgrade to a higher-priced property at a more favourable cost.
The average days on market is an important metric that measures the time it takes for a residential property to sell. In the comparison of June 2022 and June 2023, there was an increase of 57.9% in the average days on market, rising from 19 to 30 days. This elongation can be attributed to various factors, including increased competition among sellers due to the higher number of listings and a more discerning buyer pool. Sellers should be prepared for a potentially longer selling period and ensure their properties are priced competitively and well-presented to attract buyers.
The number of new residential property listings decreased by 8.5% from June 2022 to June 2023. This decline can be seen as a potential supply constraint in the market. A decrease in new listings can create a more competitive environment, with buyers having fewer options to choose from. It may lead to increased competition among buyers, potentially driving up prices in certain segments of the market. Additionally, this trend could be an indication of a more balanced market, where supply and demand are closer in alignment.
Below are the detailed Market Statistics from the Niagara Association of Realtors for each jurisdiciton within the Niagara Region:
Based on the observed market statistics, several insights and implications can be derived:
- Increased Sales Activity: The rise in the number of sales indicates a healthy demand for residential properties. Buyers may need to act swiftly and be prepared to make competitive offers to secure their desired homes.
- Favourable Buying Conditions: The decline in the HPI benchmark price presents an opportunity for buyers to enter the market or upgrade to higher-priced properties at more affordable rates. Buyers should take advantage of this correction and carefully assess the value and potential appreciation of the properties they are considering.
- Longer Selling Periods: The increased average days on market suggests that sellers need to be patient and prepared for a potentially lengthier selling process. Proper pricing, effective marketing strategies, and ensuring the property stands out in the competitive landscape are crucial for sellers in this market.
Supply Constraints: The decrease in new listings indicates a potential supply constraint in the market, resulting in increased competition among buyers. Buyers should be proactive, work closely with real estate professionals, and remain vigilant to secure properties that meet their needs.