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The Halifax housing market
Last year, our 2020 Halifax market outlook blog compared the real estate market to a rollercoaster. There were twists, turns, speedups and slowdowns, and it all repeats on a loop. The 2020 housing market turned out to be a rollercoaster that only got faster and faster, spiralling its way into the 2021 market full speed without any sign of the sharp stop at the end of the ride.
The 2020 housing market was crazy, not just in Halifax but across much of Canada. Looking to 2021, the market still has that momentum, and we’re all waiting to see what kind of ride it ends up being. COVID-19 slammed the brakes on many industries, but we’re lucky the real estate market wasn’t one of them.
So, what happened last year in the housing market, and how will it impact the 2021 market?
What happened in 2020?
Well, that’s a loaded question. For now, let’s just talk about the real estate market here in Halifax. The city – along with most of Nova Scotia – was in a seller’s market for much of 2020, with higher prices and lower supply driving the market.
Halifax has become a more popular place to live for some time, but the pandemic accelerated its growth. People from other provinces, including big cities like Toronto, caught onto Halifax’s relative affordability this year. Without the need to travel to downtown offices and the ability to work from home, there has been a bit of an exodus from other areas to this city.
A RE/MAX housing report showed the average house price rose to $370,271 in 2020, up from $329,963 in 2019. Even as prices rise, Halifax is still relatively affordable. A lot of provinces saw a seller’s market in 2020, but despite this increase in demand and price, Halifax remained an excellent place to call home this past year.
Forecast for 2021
So far, there’s no slowdown in sight for the Halifax housing market. Experts predict the average house price to continue increasing this year, going up by eight percent in the 2021 market. The seller’s market will likely continue as well, with low supply and high demand. Housing demand typically falls during the winter months, so the projection of a busy 2021 market in January and February is a bit unusual. Eventually, the market might balance itself out a bit, but we shouldn’t be seeing any real downturn in the near future.
The real estate industry has been a big boost for the Halifax economy. Although Nova Scotia hasn’t been as hard-hit by COVID-19 as other provinces, it hasn’t been free of struggles either. Like the rest of Canada and many other countries, Nova Scotia had to spend big amounts of money to help citizens through the first wave of the pandemic, when many people saw their finances fall short. This unexpected expense put a dent in Nova Scotia’s economic position.
The 2020 real estate market was able to stay strong and help the Halifax economy recover from the pandemic. This win-win situation of affordability combined with economic aid gives Halifax and the rest of Nova Scotia a strong start in the 2021 market.
What’s in store for 2021?
Halifax is rapidly growing in the real estate industry. It’s become a competitive market and should continue to see the current trends continue into 2021. Supply should stay low, prices will increase, and affordability will remain a big factor for many people looking to move to the city. This all adds up to a seller’s market, and it’s exciting to see Halifax in a strong position after such a challenging year. The 2021 market should bring lots of interesting trends, which we’ll be keeping track of as we move through the year!
If you have any questions about the real estate market, or you want more information on finding the right mortgage, get in touch with us! You can call us at 902-482-2770, or contact us here.