End of autumn market update for Halfiax

Winter is fast approaching! Soon enough, we will be looking at very chilly weather, snow, and likely the slow housing market that often accompanies this season. However, before we officially jump into winter, it’s time for a final autumn market update in Halifax. Here’s how things are looking as we head into a new season!

Housing prices

According to The Canadian Magazine of Immigration, the average housing price in Halifax is currently $522,900. This is slightly higher than the $400,000 to $500,000 range that CTV News Atlantic provided back in May. In September 2022, that price was sitting around $495,000. Housing prices haven’t experienced major shifts in a while, largely due to a slowdown in inflation, and interest rate hikes from the Bank of Canada. While the market has been busy, housing prices haven’t skyrocketed in any significant way. 

The winter season is often slow, and prices don’t tend to rise or fall too dramatically during this period. We are leaving autumn in basically the same conditions we have been seeing for the past year.

Interest rates

There is some good news and bad news in terms of interest rates. On the positive side, most people agree that rate hikes have finished for the current cycle. This means the next time the Bank of Canada adjusts rates, it will be to lower them. Unfortunately, the reasoning behind this is partly due to the Canadian economy weakening and slowing down. It seems like the central bank is preparing for a recession in the coming year, which doesn’t come as a surprise to most Canadians. Interest rates have a pretty big influence over housing prices, both in Halifax and throughout most regions. As we enter a new season, we will be watching the bank’s actions to determine what we may experience in the future.

Supply and demand

Autumn tends to be a busier market than winter for housing. Generally, buyers and sellers are more active during nicer weather, preferring not to move house during a snowstorm. We expect similar conditions this year, with listings and offers on the lower end. For people who want to purchase a home in the winter, they will have the benefit of less competition. However, they will also have to deal with potentially fewer housing options.

Looking ahead

There is some uncertainty as we look ahead to the start of 2024. The economy will probably enter a downturn, but we are not certain when. Interest rates will likely decrease, but again, the exact timeline is unclear. However, if these situations do occur, it will mean a couple of things for potential home buyers. First, mortgage rates will be lower than they are today. Second, demand for housing is likely to be lower, and housing prices may also decrease as a result. If you are considering buying a home, be sure to reach out to a mortgage professional ahead of time to evaluate the market conditions and how you fit into it.

This final autumn market update doesn’t contain any major surprises or changes since we last checked in. However, we do want to stress the importance of preparing for a potential economic downturn in the coming months. If you have any concerns about your financial situation, we encourage you to reach out. It is much easier to handle potential problems when you jump on them straight away! 

We hope you enjoy the start of the winter season. 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.