Niagara is one of Ontario's most beautiful Regions. It has a vibrant culture, amazing architecture, a diverse historical background and an educated population, which is why the housing market over the past few years has been largely immune to the contrasting experiences in other parts of the country. In most cases, both residential and commercial properties have maintained or gained new ground in the last couple of years. The value of Niagara properties for the coming years is calculated by organizations such as the CMHC (Canada Mortgage and Housing Corporation) by using key factors like mortgage rates, income and employment, net migration and demographics.
Mortgage rates have been impacting Niagara's real estate market because higher rates could reduce the housing demand. In other words, the higher the mortgage rates, the higher the price of a house gets; therefore, higher mortgage rates could add too much pressure for first-time homebuyers in Niagara. During the last few years, mortgage rates have been slightly rising, so experts predict a potential rise in Niagara property costs.
Two main factors contribute to the faith in the Niagara real estate market: the level of employment, and the population's average income. Citizens of Niagara, and Canadians in general, have full-time jobs, and, average income continues to rise, due to the country's general need for certain specializations. This in return, will boost the demand for property.
While the numbers are still encouraging, things are bound to change in the coming years. In addition, net migration is known to have an impact on Niagara's housing market due to the overall purchasing power of the population. More tourists could mean more potential investors and buyers, which could reduce the impact of the higher mortgage rates.
Statistics have shown that migration will still play a major role and although the exact numbers are unknown, foreigners, mainly Iranians and Koreans, have already purchased a significant number of luxury properties in Niagara. In fact, foreign investors are one of the main buyers of luxury real estate in Niagara.
Canadian demographics are also a decisive factor in the future of the market. The Canadian population is aging and the birth rate is increasing. Given the increase in the natural population, the demand for Niagara real estate will also increase, but the influx of foreign investors can reduce the impact of the aging population.
To conclude, Niagara is still one of the most competitive locations in real estate today. And since time is of the essence, now is the best time to get in on the action!