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Back in January, we published our first Halifax 2021 market prediction post. We anticipated a busy seller’s market with a lot of competition, just like we’ve been seeing across much of Canada. The end of 2020 had many experts forecasting these trends for 2021.
So, what’s the current market status?
2020 ended on a busy note, which has naturally carried over into 2021. If you’re wondering what that means for your future in the market, you’re not alone. Many people are thinking about their options for buying, selling, and refinancing. Here’s how the market might affect you this spring and in the near future!
General market update
For the most part, the Halifax market has lived up to the predictions of high prices and competition. We’ve been busy here all winter, and moving into the spring as well. The real estate industry has remained one of the few industries to boom during the pandemic, providing a much-needed boost for the economy. Although supply and demand have become quite unbalanced, the benefit is major economic growth for Nova Scotia.
As predicted and guaranteed by the Bank of Canada, interest rates have remained very low. We’re currently seeing the target overnight rate sitting at 0.25%, where it’s been promised to stay until Canada makes enough progress on its COVID-19 recovery. The prime rate is at 2.45%, another historic low for the country. You can read more about these rates here, and how they affect real estate.
How is the Halifax 2021 market looking for potential home buyers? Unfortunately, purchasing a home is still pretty challenging right now. Demand for housing here is still high, which continues to dwindle supply. The volume of people moving to Halifax from bigger cities like Toronto has driven up competition, and low interest rates have appealed to many buyers as well. This has created a storm of house hunters, therefore increasing housing prices.
Halifax is seeing a slight increase in new home listings as we enter spring. This is providing a small sense of relief, but supply and demand remain quite unbalanced. If you’re looking to buy a home this year, it’s extra important to plan ahead. Get your budget and credit check in place, and secure your pre-approval as soon as you can!
The Halifax 2021 market continues to favour sellers. Spring tends to be a busier time for real estate than the winter, but these last few months have already been extremely busy. If demand continues to increase, house prices are likely to go up as well. This is a great time to sell your home if you’re looking to move.
If you’re planning on selling, you also need to think ahead! Selling might seem like a super easy job in this market – people are anxious to buy, after all. However, you still need to find a good real estate agent to help you out. This market is tricky and complex, and you need to know how much your home is worth. This way, you can ensure your house is appropriately priced! Since so many people are looking to buy, having a real estate agent to help you manage offers will be a huge relief too.
What are my options?
So, what are your options in today’s real estate market? While buying a home is tricky, this could be an excellent time to refinance your mortgage. Refinancing is the perfect opportunity to make any changes to your existing mortgage. Maybe you’re hoping to take advantage of these low interest rates, and save money down the road. You might also be able to switch between a variable- and fixed-rate mortgage, depending on your current terms. Each one offers unique advantages, so it’s important to contact a broker before you act! An unbiased mortgage professional will help you determine what’s best for you in this market.
Options for buying homes are limited for the time being. While the market will balance eventually, this might not happen in the near future. If you’re in a position where you’re able to hold off on buying, waiting until the market favours buyers might be a smart move.
If you have questions about refinancing your mortgage, get in touch with us at Clinton Wilkins Mortgage Team! You can reach us at (902) 482-2770 or contact us here.