Your summer Halifax 2024 market update

Summer is almost here! That means it’s time for our summer 2024 market update here in Halifax. There haven’t been any dramatic changes in the housing market recently, but what’s in store for the future months? Here’s what you need to know as we head towards the summer season. 

What’s new with interest rates?

Long story short, there is nothing new in terms of interest rates. The Bank of Canada’s most recent meeting on April 10 brought yet another announcement that rates would hold steady at five per cent, where it has been since July of last year. The central bank also had some good news to share, saying that inflation continues to trend in the right direction. Core inflation, which removes more unstable areas like food and energy, is on the decline. In February, the inflation rate came in at 2.8 per cent. The bank is looking to see some more downward action, and to see Canada sustain it, before it cuts rates. A rate cut at the next meeting in June is not out of the question, but we are likely still looking at the second half of the year for this decision.

For Canadians in the housing market, the prospect of rate cuts is extremely appealing. Right now, mortgage rates are higher than they have been in years, making it hard for many people to break into the market. Once we see rates decline, we will also experience an increase in the number of first-time and repeat buyers diving in..

How are supply and demand looking?

Home sales are up from this point last year, but examining the big picture, they are slowing down. The Nova Scotia Association of Realtors reports that in March 2024, there were 792 units sold in the province. This is a 10.2 per cent increase from March 2023, but it is 25.2 per cent below the five year average for March. Although housing sales are higher today than one year ago, the number of new listings in March was lower than it has been in over 35 years. 1202 residential listings were put on the market. 

As for housing prices, the average year-to-date residential price is $430,528, a 1.7 per cent drop for the province. This number shifts depending on property type and location, with the Halifax-Dartmouth area claiming the highest average price of $566,080. Still, every region shows a year-over-year decrease in price. Slowly but surely, we are seeing housing costs lower, indicating demand has slightly weakened. This is likely due to high mortgage rates, and a wariness to enter the housing market in such conditions

Options for current and future home owners

What do these 2024 market updates mean for current and future home owners and buyers? It is a sign that things are turning in the right direction for these groups. If you are hoping to buy a home, the thought of rate cuts on the horizon is appealing. High mortgage rates are what’s holding many people back, so securing a lower rate will likely draw in a bigger crowd. You should take some time to think about what you want in a home, your budget, and your timeline. You can also work on getting pre-approved for a mortgage, which will make the buying process easier.

For current home owners with variable-rate mortgages, the anticipation of rate cuts is also exciting. This will of course mean your mortgage costs will lower accordingly, which will come as a relief for many Canadians. Home owners who are not satisfied with their current product can consider a refinance if they wish to readjust their mortgage. However, be sure to talk to a mortgage broker first! We can help you plan the right course of action.

The Halifax summer market will likely not be anything too out of the ordinary. If you have any concerns about your mortgage, or you are looking to buy a home, be sure to reach out to a broker. We can get your summer off to the right star!

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.