A few blogs back we took a closer look at where Niagara’s housing market is headed, today we’re going to take a look at what’s currently going on. With CMHC raising a red flag about possible risks in the national real estate market for the first time ever recently, it’s very evident that there’s a lot going on in the real estate world. In the latest housing market assessment report, CMHC said that there’s moderate evidence that price acceleration is occurring on a national level. So what does this mean for the GTHA and the Niagara Region?
The house buying domino effect
The same pressures that are forcing Toronto buyers to look outside the city for bargains in cities such as Hamilton, the same is happening to buyers in Hamilton. Hamilton buyers are increasingly being pushed out to Brantford and the Niagara Region by pressures such as the rising prices.
Homebuyers are also being priced out of markets as fundamental factors such as jobs and population growth aren’t in line with the ballooning prices. Renters that have been residing in Hamilton and other surrounding areas are struggling to afford the uptick in prices and are being priced out and forced to relocate elsewhere, primarily the Niagara Region.
Hamilton’s housing market a troublesome one
In the last year alone, existing houses in the Hamilton market have seen a price increase of about 14%. Much of this is due to out-of-town demand, and because of this, Hamilton is listed as a “strongly problematic” market, along with Vancouver, Toronto, Calgary, Saskatoon, and Regina.
The house buying domino effect is continually being seen from the GTA right down here to the Niagara Region, most notably when it comes to home sales. House buying is now typically consisting of multiple offers on properties, along with buyers paying well over the asking price.
CMHC’s housing market assessment
Covering 15 regional markets along with the national market as a whole, this assessment is intended to be an early warning of the problematic house buying conditions in Canada. With the domino effect along with a continual growth of both the Niagara Region and GTHA, it’s hard to tell at what point the market will really balance out.
Of course, with the domino effect influencing house buying options, we continue to see a strong market down here in Niagara. Buyers and sellers alike continue to take advantage of the market in search of their next home. Team Davids continues to be a leader in the Niagara real estate market when it comes to experience and efficiency. If you’re looking for the best realtors in Niagara, connect with us, and see how we can help make your realty dreams a reality.