Niagara’s housing market faced significant challenges in March 2025, as home sales plummeted by 40.73% compared to the same period last year. Only 470 properties changed hands, continuing a downward trend that began earlier in the year. February had already shown a steep 46.26% decline in sales compared to 2024 figures. The year-to-date closed sales also dropped by 10.6% from the prior year as of February.
Despite fewer transactions, demand remains steady for certain property types. Single-detached homes continue to attract buyers even as the overall market cools. This continues despite data showing a record low sales in March with only 493 transactions, 19.8% down year over year. This selective interest reflects changing buyer priorities in the current economic climate.
Single-detached homes remain desirable in a cooling market, highlighting how economic factors are reshaping buyer preferences.
New listings also decreased in March, with just 329 properties entering the market. February’s active listings were down 4.31% year-over-year, with only 2,488 properties available. This limited inventory is creating competitive conditions for buyers in popular neighborhoods. The tightening supply follows a period of increased listings in 2024, which saw 28.6% more properties listed than in 2023.
The average home price in Niagara reached $757,320 in March 2025, showing modest growth. Detached home prices increased 2.68% year-over-year to $706,054 in February. However, semi-detached homes and condos experienced price decreases of 5.37% and 6.04%, respectively. Niagara Falls bucked this trend with a 5.5% price increase to a median of $155,000 in February.
The market remains balanced, with neither buyers nor sellers having a clear advantage. Lower interest rates have boosted buyer confidence, especially among first-time homebuyers. Sellers of competitively priced homes are seeing faster sales, with February properties selling 6.67% quicker than last year.
First-time buyers and retirees continue to drive market activity. Young professionals are increasingly choosing Niagara due to remote work options and lower costs compared to big cities. Buyers from Toronto and Rochester also contribute to regional demand, focusing on affordability as they navigate this shifting market landscape.
With a steady influx of new buyers and changing market dynamics, Niagara is experiencing a unique moment in its housing landscape. Affordability and lifestyle continue to attract interest from across the province and beyond. Explore more local housing trends and community insights on Marketplace Niagara.
