Here’s your 2025 Halifax market outlook

It’s time for your 2025 Halifax market outlook! What will this year bring to the local real estate market? Whether you are a current home owner, or are looking to buy or sell, this year holds lots of potential. Here’s a quick review of what you can expect to see this year, and your best steps forward.

Interest rate expectations

Last year was a busy one for the Bank of Canada, and in a good way for Canadians! Over the course of 12 months, the overnight lending rate dropped from five per cent to 3.25 per cent throughout a series of rate cuts. We spent last year continuing to curb inflation and get spending under control, resulting in interest rates that are much friendlier than the record highs we had gotten used to in 2023. So, what should Canadians expect to see from the central bank this year?

Most experts believe more rate cuts are in store for 2025. The government is likely going to focus its efforts on supporting economic growth as opposed to cutting back on spending. However, rate decreases will probably be a bit more gradual this year than the aggressive series of cuts we saw in 2024. The Bank of Canada will still be active, but the changes will be slightly less dramatic in 2025.

Cost of housing in Halifax

How does the real estate market look in the Halifax region this year? You might be interested in buying or selling a home, or maybe you just want to keep up with market trends. RE/MAX’s outlook report for 2025 paints a picture of an active market without many major differences from the previous year. Housing prices are expected to increase by about five per cent, which would bring the average cost up to $607,859. It is fairly common for housing prices to increase year over year, so this does not come as a surprise. 

Supply and demand expectations

RE/MAX predicts we are in for a seller’s market this year, but warns sellers not to overestimate their power in the market. Halifax real estate has become more balanced, and buyers have reason to feel confident. Higher inventory levels and lower interest rates have created favourable conditions for buyers that will encourage more activity in the market. Still, sellers are likely to hold a slight advantage. Increased interest in housing coupled with a shortage of new construction buildings will give sellers an edge in the market. At the end of the day, both parties have certain market trends to look forward to. A busy spring market is on the way!

Are you a future home buyer?

Do you want to buy a home this year? Whether you are a first-time purchaser, a move-up buyer, or someone looking to downsize, you should start preparing now. Warm spring and summer weather tend to have a huge impact on the market and are likely to drive activity. Plus, the expectation of further rate cuts will also encourage buyers to start house hunting. It is in your best interests to do as much work as you can ahead of time so you can have a smoother buying experience. Some essential tasks include:

• Secure a mortgage pre-approval
• Determine your buying budget
• Find the right real estate agent 
• Consider your needs and wants.

You can read more about the importance of these items here. 

For current home owners

What should current home owners be thinking about this year? This largely depends on your situation. If your mortgage is coming up for renewal, you will need to start considering your mortgage needs and whether or not it’s time for a change. Your renewal period is the perfect time to make any adjustments as your term naturally comes to an end. However, be aware that you are likely going to renew at a higher rate than your current one. Even though rates are falling, they are still higher than what many home owners would have secured five years ago. 

If you think you need to make some changes to your mortgage and you are not due for a renewal, it might be time to refinance. This process breaks your term early in order to secure a more suitable option. However, be sure to chat with a mortgage broker about your options first! Renewals often come with penalties that can cost you in the long run if you’re not careful.

The 2025 Halifax market is bound to be a strong one filled with opportunities for buyers, sellers, and current home owners. If you are hoping to enter the market, be sure to reach out to a mortgage broker for guidance! We are excited to help you find the right product for your needs to ensure you have a successful year.

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.