The Niagara real estate market shows mixed signals as of June 2024. The average residential sale price for May 2024 was $706,771, marking a 1.60% increase from April and a 9.74% rise since December 2023.
A detailed look at individual municipalities reveals a varied picture, with some areas experiencing significant price increases while others face declines.
St. Catharines saw a modest price increase, whereas Niagara Falls experienced a decline. Overall, 6 out of 10 municipalities reported price gains, indicating an unsettled market. Year-over-year, the average price has remained relatively stable, suggesting no significant long-term shift.
Interest rates, a crucial market driver, saw the first cut since March 2020, dropping by 0.25% in June 2024. Further cuts are anticipated, signaling a potential recovery trend. Economists project that a gradual rate cut cycle could lead to a full market recovery by 2025. However, the Bank of Canada must balance rate cuts carefully to support economic growth without triggering inflation.
Key Points:
Average May 2024 Sale Price: $706,771 (up 1.60% from April)
Year-over-Year Stability: Virtually unchanged from May 2023
Mixed Municipal Trends: Some areas up, others down significantly
Interest Rate Cut: First reduction since March 2020, with more expected
Future Outlook: Gradual recovery expected, potential full recovery by 2025
St. Catharines
Saw a modest increase of $14,425 (2.32%) in May.
Niagara Falls:
Experienced a decrease
of $25,203 (3.77%).
Fonthill/Pelham:
Up a staggering
$121,953
Thorold:
Down
$110,567
