Halifax market update: What’s new?

What’s going on in the Halifax market lately? It seems like the city has been stuck in an eternal seller’s market, and many people might wonder if there’s any change in sight. While there might not be any groundbreaking news to report, the market is starting to see a slight shift. Whether you want to buy, sell, or stay put, odds are there’s something in the market that could interest you right now. Read on for a Halifax market update!

Supply and demand

We’ve gotten used to seeing the words “low supply” and “high demand” repeated over and over when discussing the Halifax market. Is that still the case? Sales in June 2021 were definitely above average compared to past years in the city, sitting at 1,411. However, this was actually a 6.6 per cent decrease in home sales compared to June 2020. This stat signals a potential decrease in demand, even though it’s still significantly higher than before the pandemic.

As for supply, there was a 21.8 per cent increase in new listings from June 2020 to June 2021 in Halifax. Supply is still low compared to historic averages, but it is in fact on the rise again. This market update suggests that if supply continues to increase as demand dies down, we might see a balance soon.

All data is from the Canadian Real Estate Association (CREA).

Prices

Now, are prices still skyrocketing out of control? For now, it looks like prices are still on a steady incline. In June, the average selling price of a Nova Scotia home was $366,683, a 27.6 per cent jump from June 2020. In Halifax-Dartmouth, that average rises to $468,790. This region has the highest prices in the province. It’s also worth noting the value of all homes sold in the province in June totaled $517.4 million, which is a 19.2 per cent increase from June 2020. 

Buyers are purchasing without property inspections, and there has been a spike in people buying homes from outside the province. These patterns have played a role in increasing demand, and therefore prices, during the pandemic. At this moment, housing prices are still consistently rising, but can these trends continue? If supply is once again increasing, and demand is showing signs of a potential slowdown, what does this mean for future prices? 

If you’re a buyer

There is both good news and bad news for potential buyers entering the Halifax market. The good news is, prices are likely to plateau by 2022. This should result in fewer bidding wars, and perhaps increased supply. The bad news from this market update is prices likely won’t decrease or return to their pre-pandemic amounts. They will simply stop rising as rapidly, but the rise itself will continue. The average housing prices we saw in the province pre-COVID are likely gone, replaced with a new, higher average. 

If you want to buy, it might be best to wait until the house-hunting frenzy completely dies down so you will have less stress. If you’re a first-time buyer, it may be discouraging to hear that prices likely won’t drop anytime soon. However, this knowledge gives you time to save and prepare for 2022, if you still plan to buy!

If you’re a seller

In general, we’re still in a seller’s market, and prices are still high. The average housing price in Halifax-Dartmouth went up 60 per cent over the past year, according to the Nova Scotia Association of Realtors. However, while the market is super busy right now, many are expecting a drop by 2022. The CREA says the market is likely to experience a bit of a slowdown, with prices rising, but not as quickly. This is a result of increased vaccinations, reopenings, and a return to normal life. There will likely be less desperation for people to buy.

However, since the market rose so fast, it has a long way to fall, meaning housing prices will stay high. If you’re planning on selling, there is still no bad time to do so. Selling now is likely to ensure a high sale price, since we know inventory is still on the lower side. Although buyers are tired of bidding wars, they’re still interested in purchasing. Selling later will still get you a good amount of money, but if interest has declined, it may take longer to sell. 

If you’re staying put

Even if you don’t plan on leaving your home or buying a new one, you might still want to be involved in the market. With that in mind, maybe it’s a good time to refinance! Rates are still low, so there’s a good chance you could secure a lower rate. If you want to consolidate debt or shorten your term length, these are also good reasons for refinancing. Buying and selling a home is where most people’s focus is, but refinancing is also a viable option for homeowners.

The real estate market in Halifax has been nothing short of a roller coaster ride for well over a year now. For many, the fact that we are likely to see a slowdown is a massive relief. With some of the pressure on the market lifting, hopes are up we will have a more stable and balanced market moving forward.

If you have any questions, are looking to buy a home, or hoping to refinance, get in touch with us at Clinton Wilkins Mortgage Team! You can call us at (902) 482-2770, or contact us here.