How does the Halifax summer market look?

Now that we’ve reached the end of June, the summer season is officially in full swing. What does that mean for the Halifax summer market? This year, we are looking at even higher interest rates and housing prices, but this could still be a good time for buyers and sellers to enter the market. Here are the main points to know about the current market trends, and what they might mean for the summer season.

Current interest rates

After the Bank of Canada’s last announcement, Canadians are now dealing with yet another rate hike. In a semi-surprising move, the central bank announced a 0.25 per cent increase to the overnight rate in early June. Many experts predicted we had completed the current rate hike cycle and would be sitting still for the near future. However, inflation in Canada has continued to be stubborn, prompting an additional increase. Today’s overnight rate is now 4.75 per cent, and the retail prime rate has jumped up to 6.95 per cent. 

At this point, there is no clear certainty where interest rates will move next. The next announcement from the Bank of Canada will come in July. In the meantime, home buyers will be working with even higher rates than one month ago. We have yet to see how this might impact supply and demand long-term, but we can provide some insight on the current conditions of the Halifax summer market. 

Housing prices

A CTV News Atlantic article from late May wrote that housing prices in Halifax-Dartmouth are sitting between $400,000 and $500,000. At the time, housing prices were on the rise thanks to the temporary halt in interest rate increases, as well as the warmer spring weather. Buyers tend to be much more active during the spring and summer, after a slow and cold winter season. Now that rates have risen once again, we will start to see the effects on the market within the coming weeks and months. Right now, though, buyers are likely going to be working with housing prices on the higher end. Of course, there will always be some variation between property types and locations, and many buyers can find the right home within their budget. 

Getting started as a buyer

If you’re hoping to buy a home in the Halifax summer market, there are a few things you can do in advance to prepare. You will want to get in touch with both a mortgage broker and a real estate agent in order to start things off on the right track. With the help of these professionals, you can establish your budget, housing needs, and secure a pre-approval. These are all important items to complete early in the purchasing process. Having a grasp on what you can afford and what you want to buy will help you narrow down housing options in the market. The clearer an idea you have about your buying requirements, the easier it will be to find the right property. A pre-approval will also help you understand what you can afford, and what improvements you might need to make to your financial situation. Pre-approvals give lenders a chance to get to know you, and provide you with an opportunity to learn where you stand in the market. You can learn more about the importance of pre-approvals here.

Thinking about selling?

What if you’re on the opposite side of the Halifax summer market, and you’re looking to sell your property? Selling during the summer is often a good choice, as a higher number of buyers could put your home in bigger demand. This means you are more likely to secure a good offer and sale on your home. However, keep in mind that as we move further away from the market highs of 2020 and 2021, buyers and sellers are increasingly equal, meaning there is often no clear dominance from one group. In order to have a successful experience, be sure to keep your home in great shape and condition, and use a real estate agent to help you determine the best asking price. This will attract more buyers and help you secure the best offer.

Options for existing home owners

Finally, if you currently have a home, what does the Halifax summer market mean for you? Now that interest rates have risen again, some home owners might be feeling a little financially strained. Costs of living continue to increase, and having a mortgage is a big expense. If that’s the case for you, you can reach out to a broker to discuss your options. Depending on your situation, you might be in a good place to refinance your mortgage in favour of a more fitting product. As we approach a potential recession, some home owners are opting for shorter-term products so they may take advantage of lower interest rates if they decrease in the future.

The Halifax summer market will likely be a busy one despite this most recent rate hike. If you’re planning on jumping into the market as a buyer or home owner, be sure to reach out to a mortgage broker! We can get you started on the right path to set you up for success this 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.