Shawn DeLaat
We’re back with another market update, where Shawn de Laat breaks down how January/February’s frenzy affected the Niagara Real estate market in March 2022, and includes some strong predictions for April / May as well as solid advice for buyers and sellers.
WATCH: The State Of Niagara Real Estate March 2022, with Shawn deLaat
January started this year with historically low levels of inventory. This created a ton of “holding offers” scenarios where real estate agents listed homes well below market value, drumming up those impressive and incredibly high offers well over listing price.
This pricing strategy worked very well in January due to the pent up buyer demand that developed over the holidays and the smaller number of homes hitting the market for sale.
THE SPRING MARKET
In February, sellers clearly got the memo that the Niagara real estate market was hot as we started to see more homes for sale and more available options for our buyers. Home prices still held strong all through the month of February and into March, but what this new inventory actually did with record high sale prices was push some buyers right out of the market altogether.
Numerous buyers out there are struggling and fighting for properties, competing with multiple offers on homes. They’re often bidding well over the list price and unfortunately still being outbid. With the saturation of the “holding offers” strategy, it can be difficult to gauge what a home will sell for and options, though plenty, were not always realistic for a lot of buyers.
As March continued on, we saw more inventory open up, creating opportunity for buyers and easing some of that demand. Some real estate agents, still keen on riding the February frenzy were continuing to list properties below market value and holding offers, but not seeing the same kind of impressively high, multiple offers they were expecting. Some of these homes sold for below market value.
When inventory opens up and the buyer demand subsides, we know that holding offers can sometimes be a risky move. As a listing sales representative, protecting our seller’s home values should be top priority. When the market shifts, so should your strategy for pricing and marketing homes for sale.
PREDICTIONS FOR NIAGARA REAL ESTATE APRIL / MAY 2022
Moving forward into April / May, you’ll likely see more homes priced higher and appropriate to the market’s current state. This protects the value of you home, ensuring you don’t receive over listing price offers that are still well below your home’s value. This will also creating some stability in the market that so many home buyers need to be able to purchase a home right now.
This isn’t to say that holding offers will stop, just that we’ll see far less use of that strategy in the coming months.
ADVICE FOR NIAGARA HOME BUYERS
There’s a positive outlook for our buyers. A number of local sellers looking to stay local and who have held off selling because they’re also waiting for opportunities to buy. As inventory opens up for them, these sellers will list their homes, creating more options for buyers all around.
The number of competing offers are starting to decrease, making the likelihood of a bidding war far less. In addition to that, the nice weather is on the way which historically has been synonymous with an influx in home sales as curb appeal is at its highest during the warmer weather.
With the expectation of more inventory on the way, increasing your options to buy, don’t hesitate to reach out to someone on the Davids & DeLaat team with any questions you might have or sign up to receive New Listings Daily so you never miss another listing for sale in Niagara that matches exactly what you’re looking for.
ADVICE FOR NIAGARA HOME SELLERS
There will always be certain homes with certain features in certain areas that will benefit from holding offers and other various pricing strategies. No home sale should ever be a one-strategy-fits-all scenario which is why we strongly encourage you to ask the tough questions of your real estate agent.
If you’re interested in selling your home, now might be a great opportunity to take advantage of the market while there is still a strong buyer demand.
Contact the Davids & DeLaat team to schedule your free home evaluation to find out what your home could sell for in today’s market and to discuss a selling strategy that’s custom fit for your home.
REAL ESTATE ACTIVITY IN NIAGARA MARCH 2022
| RESIDENTIAL MLS® DATA | AVERAGE HOME SALE PRICE | NUMBER OF HOMES SOLD | ||||
|---|---|---|---|---|---|---|
| March 2021 | March 2022 | % Change | March 2021 | March 2022 | % Change | |
| FONTHILL / PELHAM | $857,826 | $1,0083,448 | +26% | 57 | 42 | -26% |
| FORT ERIE | $653,139 | $846,422 | +30% | 116 | 77 | -34% |
| GRIMSBY | $839,060 | $1,024,549 | +22% | 85 | 77 | -9% |
| LINCOLN | $841,788 | $983,786 | +17% | 52 | 38 | -27% |
| NIAGARA FALLS | $626,134 | $866,334 | +38% | 207 | 154 | -25% |
| NIAGARA-ON-THE-LAKE | $1,018,789 | $1,259,788 | +24% | 48 | 28 | -42% |
| PORT COLBORNE / WAINFLEET | $606,177 | $760,077 | +25% | 52 | 62 | +19% |
| ST. CATHARINES | $611,935 | $794,399 | +30% | 294 | 254 | -14% |
| THOROLD | $642,755 | $814,632 | +27% | 77 | 46 | -40% |
| WELLAND | $562,681 | $712,360 | +26.6% | 136 | 108 | -21% |
| WEST LINCOLN | $905,901 | $1,092,213 | +21% | 25 | 23 | -8% |
Source: BAAR, BDAR, BRREA, CAR, RAGBOS, GDAR, HPAR, KLREA, KAREA, KWAR, LSTAR, MREB, NAR, NBREB, NHAR, OMDREB, PSAAR, PKAR, QDAR, SDREB, SGBAR, LAR, TDREB, WIDREB, RAHB
FREE Home Evaluations in The Niagara Region
Your home has likely built up a substantial amount of equity in the last year alone! Curious what it’s worth today? Book a free, no strings attached home evaluation with a member of the Davids & DeLaat team. Our free home evaluations include a comparative market analysis to give you an idea of what homes just like yours are selling for in your immediate area, a real estate consultation to learn more about your goals and how we can help you, PLUS they’re 100% free with ZERO pressure and ZERO obligation to sell your home.
