Mid-autumn Halifax market update

We’re already approaching the midpoint of the fall season. It feels like 2021 has flown by, which may come as a relief, as many of us are anxious to escape any memories of COVID-19. However, the pandemic’s impact on the real estate market has been a lasting one, and will likely linger for a while. If you’re a potential buyer or seller, or even a current home owner, you may want to know what’s going on in your region’s market. Here’s what you need to know about supply, demand, prices, and your options!

How are supply and demand shaping up?

The Halifax market has stayed fairly strong throughout the year, a trend that isn’t likely to end before 2022. Of course, we all know that COVID-19 brought remote work into heavy use across all industries and environments. Plus, the desire to move to more affordable areas resulted in many people leaving places like Ontario for the relative affordability of the east coast. How has this had a lasting impact on supply and demand?

These trends have caused markets like Halifax to heat up. High demand for east coast living drove prices up, lowered supply, and decreased the number of days homes spent on the market. In fact, according to RE/MAX, average house prices in Halifax are expected to increase by another six per cent by the end of the year. Supply might increase a bit later in the season, but not enough to straighten out the market. 

If you’re planning to buy

Buyers are still firmly stuck in a seller’s market here in Halifax. This is an especially big concern for first-time buyers, many of whom are turning to semi-detached homes or townhome options instead of detached houses, due to price increases. The condo market is also booming, with this segment seeing a 55 per cent sales increase year-over-year, and prices increasing 29.1 per cent year-over-year, according to RE/MAX. Detached homes experienced the next biggest price increase (24.3 per cent), followed by townhomes (21.7 per cent). 

If you want to buy this fall, what does this mean for you? First, you must decide what property type you’re aiming for, because this will influence your budget. The average prices for the following property types in Halifax are:

• Single detached home: $500,147
• Condominium: $388,917
• Townhome: $374,738

Once you know your budget and the property type you wish to pursue, it’s time to get the process rolling. Start by meeting with a broker to get pre-approved and connect with potential lenders!

If you’re planning to sell

Sellers are still in a good position in Halifax as we approach the end of 2021. Since housing prices are still increasing as supply remains low, you’re in a good spot to get a nice sale on your home. However, the Canadian Real Estate Association (CREA) is still expecting home sales to fall in 2022. Plus, although prices will increase, they will do so more slowly. This is due to the fact that the frenzy of buying is finally seeing a bit of relief. 

Of course, relative to other years, the market still seems super hot. If you’re ready to sell now, your home will likely sell quickly and you may have more bidders, while selling later might mean waiting longer on the market. In any case, before you sell, be sure you have a real estate agent on your side! They will know what your selling goals are, and they can help you plan your next move. 

What are your options as a home owner?

As always, our Halifax market update wouldn’t be complete without addressing current home owners! It might be a good time to consider a refinance if you have long-term plans to stay in your home. You certainly know by now that rates are low, so if you have a good reason to refinance, you can meet with a broker to discuss your options. Some reasons to refinance might include debt consolidation, accessing home equity for home improvements, getting a better rate, or shortening your term length. Depending on your mortgage type, you might also be in a place to switch between a variable-rate and fixed-rate mortgage.

We understand the market has been frustrating for many people, especially for those trying to break into it for the first time. This Halifax market update might not include any promises of price decreases, but 2022 is expected to bring some relief to buyers. In the meantime, consider your situation and what your options are moving forward. If you need a helping hand to guide you through the process, we’re here to help!

If you’re interested in buying a home or refinancing, get in touch with us at Clinton Wilkins Mortgage Team! You can call us at (902) 482-2770 or contact us here.