Following the rapid increase in home values and prices, home buyers in Niagara state that the market is finally going through a decline and according to real estate agent of St. Catharines Randy Mulder, the housing market is expected to decline further as the effects of the foreign buyers’ tax implemented in the GTA by the provincial government reigns in.
Home sales in the GTA dwindled by 25.3% in May following the introduction of several government measures to cool the market.
As housing markets across the country go through declines, this has also been translated into the national figure as it also experienced a 6.2% decline in May which is a drop from the month of April where prices were higher.
In a report by the Canadian Real Estate Association, this is the largest month-to-month decline in close to five years but despite these declines, home sales on the other hand saw an increase of 12.1%.
Statistics from the Niagara shows there were 955 properties sold in the month of May which compared to the same period last year.
Needless to say, Mulder, the president of the Niagara Association of Realtors is hopeful that the effects of the new measures taken will have its intended effect on the market.
This he went on to say has given Toronto buyers reason to hold on to their buying process and see how the few coming months will look like and if such a situation occurs in Toronto, it will most likely be reflected in Niagara.
Although there are indications that the market in Niagara is having an increase in home sales, this is mainly attributed to the fact that there are more homes being listed in the market.
Mulder went on to throw light on the fact that there were 1,280 new homes introduced to the market which was 1,072 last year.
This is however welcoming as new listings helps to reduce the pressure on supply and gives buyers more options to choose from.
Feyez Elayan, Brock University business accounting professor stated home values are finally making a recovery following a long period of low home values.
People are finally getting to know the value of the city as it has a lot to offer.
In Niagara, the average home price stands at $429,455 which is higher than the figure recorded last year which was $100,000.