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Halifax Summer Market Update
Buying or selling a home is a big deal. It’s a big decision that requires a lot of consideration and preparation. It is important to understand the current market conditions so that you can develop an appropriate plan of action and make the most of the situation. So, if you’re looking to buy or sell a home in Halifax or Dartmouth this summer, here is our Halifax summer market update:
Changes in the market
Due to the impact of the pandemic over the previous few months, the real estate market has not been overly stable. Many buyers are looking to relocate, however, there are not enough sellers to match the current demand. June 2020 showed the least amount of active listings in more than 15 years, with only 4,398 homes for sale. Consequently, home prices have been increasing with the average price of a home in the city rising 4% to $330,565. The total dollar value of all residential sales rose 21.6% to $407.8 million from June 2019 to June 2020.
It is anticipated that these trends in the real estate market will continue for the rest of the summer and into the fall, as it should take 6-12 months for the housing supply to catch up with demand.
Depending on whether you’re a buyer or a seller, there are some things to keep in mind to make the most of the Halifax summer market conditions:
Impact on Sellers
Good news for those of you looking to sell, it’s a seller’s market this summer. With substantial unfilled demand, buyers are often willing to pay over asking and bidding wars are not uncommon. Sellers have substantial power right now, so if you have been thinking about selling your home, it would be wise to get your home sale-ready as quickly as possible to take advantage of the market. That being said, don’t try and over-optimize by spending too much time prepping your home or by pricing it too high.
Buyers are eager to move, but they are still rational and will not pay way over market value if the home just isn’t worth it. But they are eager, so your home does not need to be absolutely perfect. It would be wise to spend time thinking about any quick adjustments or renovations you can make that would increase your home’s market value, but you do not need to go over-the-top in these market conditions.
Impact on Buyers
Although it is a seller’s market right now, that doesn’t mean you won’t be able to find a great deal on a home. Utilizing various strategies to make your offer more lucrative can help you avoid paying over market value like reducing the number of conditions, a strong deposit, and having a mortgage pre-approval. At the end of the day, the simpler you can make the process for the seller the more likely they are to accept, even if it isn’t the highest offer price. If these strategies aren’t working as planned or you cannot find a home in your budget, it may also be a good time to readjust your strategy.
Perhaps consider purchasing a home in a lower price range that might need some renovations. This way you can spend time creating a home that matches your exact design dreams and avoids investing all at once. Alternatively, if moving immediately isn’t absolutely necessary, you may want to consider delaying your home search for a few months until home prices begin to subside.
Regardless if you’re a buyer or a seller, it is key to move quickly in this market. With few homes available and buyers entering the market each day, you want to stay on top of everything to avoid missing opportunities. For more information on how a mortgage broker can help you navigate the real estate market in Halifax, give us a call at 902-482-2770 or get in touch with us here!