Your 2024 Halifax market outlook

Your 2024 Halifax market outlook is here! This year will likely be a bit different than the past couple of years, due to changing interest rate trends and the potential for an economic downturn. However, 2024 is still bound to be active in terms of real estate. Here’s what you should know as we head into the year.

Interest rate expectations

The Bank of Canada has been fairly calm recently in terms of interest rate adjustments. The last rate hike was in July 2023, where we saw the overnight rate rise to its current figure of five per cent. Since then, there has been no movement. Most people agree rates will remain unchanged at the Bank of Canada’s first interest rate announcement of 2024 in a couple of weeks. What does this say about the rest of the year?

It will come as a relief to most Canadians to know rates are not expected to increase this year. The next rate change might actually be a rate drop. We still don’t know for sure when this change might take place. However, many people are looking forward to the Bank of Canada taking its foot off the gas. After a couple of years of record-high rates, everyone is happy at the prospect of a break.

Housing prices

Whether you are a buyer, seller, or current home owner, you might be curious to know how homes will be selling in Halifax this year. RE/MAX’s 2024 Halifax market outlook predicts there will be no major changes in prices from last year. It expects prices to largely remain unchanged, with a prediction of an average selling price of $500,000. We are used to housing prices increasing year over year, so this is a slight deviation from the norm. What kind of impact will this have on supply and demand?

Supply and demand

The RE/MAX 2024 Halifax market outlook also reports 2024 will be a seller’s market. This means there will likely be more demand for housing than there is supply. However, if housing prices are to remain unchanged, there will not be a huge power imbalance between buyers and sellers. The number of sales is predicted to increase around five per cent compared to 2023, so RE/MAX is expecting a busy market. With interest rates set to drop, there is likely to be a higher interest in buying, which will drive up demand and put pressure on supply.

Future home buyers

If you are hoping to buy a home in 2024, what should you do now? The housing market will probably get busier as we approach warmer weather, and interest rates begin to fall. At this point, demand will be at its peak. It’s best to start preparing for your buying journey now, so you can give yourself an advantage when you enter the market. For example, we recommend securing your pre-approval, creating a list of housing requirements, and getting in touch with potential real estate agents. Completing these tasks will help put you ahead of the competition, and make your buying experience smoother. 

When should you actually jump into the market? Entering the market now will likely mean less competition, but you will be working with higher interest rates. On the other hand, waiting until later in the year will increase the number of other buyers, but interest rates are more likely to be lower. You can speak with a broker about what path might be best for you!

Current home owners

If you are a home owner, what does the 2024 Halifax market have in store for you? Those with variable-rate mortgages can look forward to the likelihood of rate drops later in the year, which will come as a relief. If you are interested in readjusting your mortgage terms, you can consider a mortgage refinance. This may be a good idea for those who want to change something about their current mortgage, or who want to access home equity. Be sure to connect with a broker before you take any action, however!

Another item all Canadians should be aware of is the likelihood of a recession in 2024. An economic downturn will affect residents in different ways. If you have any concerns about how a recession may impact you, it’s important to reach out! We are here to help you navigate this year with confidence.

If you have any questions about your mortgage, get in touch with us at Clinton Wilkins Mortgage Team! You can call us at (902) 482-2770 or contact us here.