In May, the Niagara Association of REALTORS® listed 1568 residential properties compared to 1318 in May 2023. The average days it took to sell a home in May 2024 was 37 days, a 23% increase from May 2023. Consumers who have been waiting on the sidelines should be in the market now with the Bank of Canada announcement reducing the interest rates. This has given both buyers and sellers the confidence in the market they needed. May was already showing signs of that confidence with May Sales identical to April and the Benchmark Price increase along with the days on market reducing. Although the rate decrease is a positive sign, we are still in a housing attainability crisis and need all levels of government to work together to get more homes built, streamline the process by reducing red tape and get creative to make housing attainable in Niagara. Consumers should be contacting their local Niagara REALTOR® to stay informed of the current market in their neighbourhood.
Allow me to breakdown the recent rate cut:
Interest rates were cut by 0.25%, bringing the key interest rate from 5% to 4.75%. This reduction is good news for both homeowners and those looking to purchase a home. Lower interest rates can make borrowing cheaper, especially mortgages. Although the 0.25% rate cut isn’t a substantial change, it could hint at more interest rate decreases in the future - over 2024-2025. For those whose mortgages are up for renewal soon or who have variable rate mortgages, this is encouraging - but rates are still higher than they were a couple years ago. If you’re thinking about buying a home, renewing a mortgage, or have variable rate mortgage, it would be a wise decision to speak with a Mortgage Specialist and review all options. I am always happy to connect you with the right fit and i’m happy to answer any questions.
