Shift to seller’s market in 2020, prices expected to rise 7%
RE/MAX is expecting balanced conditions for the Niagara housing market in 2020, with an anticipated residential price increase of seven per cent.
Niagara is currently experiencing a balanced market, with 3.5 months of supply; however, this is expected to shift in favour of sellers in 2020. Affordability isn’t a concern in the region, with value-conscious consumers from the GTA buying in droves (and sometimes commuting to Toronto for work). Both commercial and residential development in the south end of Niagara Falls and Fort Erie is expected to impact the housing market as well.
The RE/MAX average residential sale price expectation for Niagara in 2020 is an increase of seven per cent based on historical price appreciation, which was particularly high from 2018 to 2019 at almost 13 per cent.
Economic conditions should improve, especially due to the redevelopment of the auto assembly plant in St. Catharines. The fate of the auto engine plant is also a factor.
First-time buyers and downsizers will drive demand in 2020, attracted to the Niagara housing market for its affordability. The most in-demand neighbourhoods to watch in 2020 include Prince Charles, Lincoln and Stamford.
From a national perspective, RE/MAX anticipates a leveling out of the highs and lows that characterized the Canadian housing market in 2019, particularly in Vancouver and Toronto, as we move into 2020. Healthy price increases are expected, with an estimated 3.7-per-cent increase in the average national residential sales price, according to the RE/MAX 2020 Housing Market Outlook Report.
Most individual markets surveyed across Canada experienced moderate price increases year-over-year from 2018 to 2019. However, some regions in Ontario continue to experience higher-than-normal gains, including London (+10.7 per cent), Windsor (+11 per cent), Ottawa (+11.7 per cent) and Niagara (+12.9 per cent).
“Southern Ontario is witnessing some incredibly strong price appreciation, with many regions seeing double-digit gains,” says Christopher Alexander, Executive Vice President and Regional Director, RE/MAX of Ontario-Atlantic Canada. “Thanks to the region’s resilient economy, staggering population growth and relentless development, the 2020 market looks very optimistic.”