Prices Are Coming Down and So Are Rates

On a regional basis, the HPI Home Price Index has fallen every month since August and into November.

Specifically, the price drops were as follows:

As noted, these downward fluctuations in price represent a negative total of -4.9%. This decline is somewhat representative of the percentage change in HPI for each Niagara municipality which hovers between -4% and -5%, with exceptions.

The number of sales was as seen below:

With the exception of August, though a mere .4% increase, the remaining months from June onward saw some noticeable decreases in the number of sales.

What About December Sales?

As of this writing, January 2, 2024, the number of sales in December, compared to the same time period in November, has also indicated a decrease of about minus 27.9%. This is not necessarily unusual given that December tends to be one of the lowest in sales production.

And What of December Prices?

The Home Price Index has not yet available. Yet the median price indicates a drop of about minus 3.4% compared to the month before, from approximately $621,250 in November to $600,000 in December.

How Might Rates Influence the Market?

On December 26, CBS reported that 5-year fixed mortgage rates for insured mortgages have fallen below 5%, the lowest since last Spring. In the article Victor Tran of ratesdotca states, “The last time we saw a five year fixed at around 4.89 or 4.99 per cent was the middle of May [2023], around Victoria Day weekend.” The prospect of lower fixed rates can encourage buyers to purchase sooner rather than later, in an effort to avoid the possibility of competing offers returning, especially in the lower than average price ranges.