The region continues to attract multi-generational home buyers, who seek to enjoy a high-quality lifestyle at affordable prices
NIAGARA/ST.CATHARINES, January 11, 2019 – According to the Royal LePage House Price Survey1 released today, the aggregate home price in the Niagara/St. Catharines region rose 5.7 per cent year-over-year to $419,745 in the fourth quarter of 2018.
When broken out by housing type, the median price of a two-storey home rose 4.0 per cent year- over-year to $435,337 in the fourth quarter of 2018, while the price of a bungalow rose 7.8 per cent year-over-year to $401,833.
“Affordable home prices continue to position the Niagara region as one of the most attractive for young families looking to invest in their first home without traveling too far from the Greater Toronto Area,” said Brad Johnstone, broker of record, Royal LePage NRC Realty. “Millennials are becoming financially savvier, as they choose to either invest in a property that might have a secondary unit to offset the mortgage costs, or to purchase a less expensive house that they can afford more easily.”
Johnstone added that Baby Boomers are returning to retire after living in larger cities and to enjoy the lifestyle the region offers, putting upward pressure on prices.
Nationally, year-over-year home prices made healthy gains in many regions across Canada in the fourth quarter of 2018. The Royal LePage National House Price Composite, compiled from proprietary property data in 63 of the nation’s largest real estate markets, showed that the price of a home in Canada increased 4.0 per cent year-over-year to $631,223 in the fourth quarter of 2018. When broken out by housing type, the median price of a two-storey home rose 3.9 per cent year-over-year to $745,007, while the median price of a bungalow climbed 1.5 per cent to $516,950. Condominiums continued to see the highest rate of appreciation nationally when compared to the detached segment, rising 7.2 per cent year-over-year to $447,915.
“The invisible hand that guides our complex economy hit the real estate reset button in 2018 and that is a good thing,” said Phil Soper, president and CEO, Royal LePage. “Major market home price inflation through much of the decade had led to dangerous overheating in our most populous regions. Government regulatory intervention and rising interest rates, when combined with property price overshooting, triggered the correctional cycle we find ourselves working through today.”
1 Aggregate prices are calculated using a weighted average of the median values of all housing types collected. Data is provided by RPS Real Property Solutions.