As we bid farewell to 2024, the Niagara Region real estate market is showing signs of an interesting shift. Let's dive into the latest trends and what they mean for both buyers and sellers as we approach 2025.

Price Trends: A Mixed Bag

The Niagara housing market has experienced some fluctuations in prices throughout 2024. While there was a slight decrease earlier in the year, recent data suggests a modest recovery:

- The average sale price across all property types decreased by 0.7% from 2023 to 2024, settling at $695,384.

- However, looking ahead to 2025, experts anticipate a 2% increase in average residential sale prices.

For buyers, this means that while prices have stabilized somewhat, they're expected to rise again in the coming year. If you're considering a purchase, acting sooner rather than later could be advantageous.

Sales Activity: Signs of Recovery

Despite some challenges, the Niagara real estate market is showing resilience:

- The number of sales transactions increased by 4.2% from 2023 to 2024, with 5,652 sales recorded.

- Projections for 2025 suggest a further 4% increase in the number of sales.

This uptick in activity indicates growing confidence in the market, which could lead to increased competition among buyers in the coming year.

Inventory Levels: More Options for Buyers

One of the most significant trends of 2024 has been the increase in available properties:

- The total number of listings saw a substantial increase of 28.6% from 2023 to 2024, with 28,031 properties listed for sale.

- Active listings at the end of August 2024 were up 13.8% compared to the previous year, reaching levels not seen in over a decade.

This surge in inventory is good news for buyers, as it provides more options and potentially reduces the pressure of bidding wars.

Market Balance: Shifting Dynamics

The Niagara housing market is currently experiencing a mix of conditions:

- The market is described as a combination of balanced and buyer's market conditions.

- Months of inventory stood at 5.5 at the end of August 2024, up from 4.5 in August 2023.

This shift towards a more balanced market suggests that buyers may have more negotiating power than in recent years, while sellers may need to be more strategic in their pricing and marketing efforts.

What This Means for You

For Buyers:

- With prices expected to rise in 2025, now might be an opportune time to enter the market.

- Increased inventory levels mean more choices and potentially less competition.

- The shift towards a balanced market could provide more room for negotiation.

For Sellers:

- While the market is no longer as hot as it once was, there's still steady demand for homes in Niagara.

- Proper pricing and effective marketing will be crucial to attract buyers in a more competitive landscape.

- Consider the timing of your sale, as the market is projected to strengthen in 2025.

Looking Ahead to 2025

As we move into the new year, several factors will likely influence the Niagara real estate market:

- First-time homebuyers and retirees are expected to drive market activity.

- Single-detached houses are anticipated to see the most sales activity in the region.

- Economic factors, such as interest rates and employment trends, will continue to play a significant role in market dynamics.

In conclusion, while the Niagara real estate market has seen some challenges in 2024, the outlook for 2025 appears cautiously optimistic. Whether you're looking to buy or sell, now is an excellent time to strategize your next move. Consult with a local real estate professional to make the most of these evolving market conditions and achieve your property goals in the coming year.