Niagara Housing Prices on the Rise

Newsreport

Home sales continue to hold steady with sales in May surpassing last year’s total by a single unit. According to the Niagara Association of Realtors there were 19 unit sales in Pelham during May 2012 while last May the tally was 18.

Year-to-date activity levels are well ahead of last year with the sales total of 99 transactions recorded so far this year reflecting a 23.7% increase over the May 2012 year-to-date total of 80 sales.

Low borrowing costs continue to fuel the market while the under supply of inventory is heating up price growth.

The average selling time for Pelham homes during 2103 has dropped to 74 days – down from 94 days on average recorded during the months of January to May in 2012. However, when compared to the rest of Niagara, selling times in our Pelham area are much longer than the overall Niagara market.

The average number of days it takes to sell a home across the Niagara Region was 64 days so far this year down slightly from the figure of 66 days recorded during January to May last year.

The 12-month average price in Pelham now stands at $334,385– up 2.1% from the figure of $327,528 recorded in May 2012. Across Niagara as whole, the 12-month average price has climbed an impressive 3.1% since this time last year.  The 12-month average price for the Niagara Region is currently $243,939 compared to the level of $236,440 reported in May 2012.

The average price increases in Niagara are happening despite a marked drop in total sales activity. As of the end of May, sales to date in the Niagara Region had reached 2,505 units – reflecting a 5% decline from last year’s total of 2,638 transactions logged during the same time period.

The lower sales figures in Niagara are being offset by an under supply of new listings. As long as demand for housing keeps outpacing the rate of inventory growth we can expect continued price growth into the second half of the year.
This article is part of our Series of “Real Estate View” Columns published in the Pelham News.



Categories: Real Estate Market Update

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