Hello HRM Homefront!
So far in 2024 prices are up, sales are up and there’s very limited options out there for Halifax home buyers. In today’s market recap we’re going to review some important Halifax Real Estate market stats. This blog post is year-to date fBut let’s break it down and make it simple. In the world of real estate, numbers and statistics can often overwhelm us. We hear about this percentage increase, that housing market trend, and it can feel like we’re drowning in a sea of information.
However, amidst all these numbers, what truly matters is the context in which they apply to your specific situation. Are you a buyer or a seller? Are you looking for a high-end property or something more modest? Is your desired neighbourhood a thriving market or experiencing a slowdown?
You see, the real estate experience can vary drastically depending on these factors. While overall market trends provide us with a macro perspective, the micro details make all the difference. The price range and neighbourhood you’re targeting shape your journey.
Imagine you’re a buyer searching for a home in a lower price range. The statistics might reveal a highly competitive market, with limited inventory and multiple bidding wars. For you, it means being prepared to act swiftly, having your finances in order, and being ready to make offers that stand out.
On the other hand, if you’re a seller in a desirable neighbourhood with luxury homes, the story could be entirely different. The statistics might indicate a slower market, with fewer buyers and a longer time on market. In this case, pricing strategy and marketing efforts become paramount to attract the right buyer and maximize your property’s value.
So, when confronted with a plethora of numbers, it’s crucial to remember that the game of real estate is not a one-size-fits-all scenario. It’s a diverse landscape, where different price ranges and neighbourhoods create distinct experiences.
As an agent or a savvy buyer/seller, it is essential to understand these nuances. Educate yourself on what’s happening in your desired price range and neighbourhood. Stay informed about the current market conditions, absorption rates, and comparable sales.
By doing so, you empower yourself to navigate the real estate world with confidence. You can engage in meaningful conversations with your agent, make informed decisions, and set realistic expectations.
So, although the statistics may paint a broad picture, it is the context that truly matters. Remember, real estate is personal. Take the numbers and apply them to your specific circumstances. That’s where you’ll find the true meaning behind all the stats and figures.or the first quarter of January 1st up to March 31st, 2024. Getting right into it so far this year we’ve had 965 sales across the HRM and this is up 16.7% year-over-year. Now, these homes sold for an average of just over $558,000 which is up 4.8% from the same time period in 2023. Homes are about 5% more expensive than they were last year but at the same time we’ve sold 16.7% more homes this year.
Why could that be? I think a big reason for this is coming down to is consumer confidence so if you remember going into the year in 2023 I feel like there was a lot of negative sentiment surrounding the Halifax housing market. Many people were saying the market was going to crash the market was going to tank. Anybody who buys a house in 2023 is an idiot and realistically that did not happen. The market remained pretty flat last year in 2023.
Coming into 2024 and so far in the first quarter, it seems like things are much more positive. There’s improved sentiment toward the market both from consumers and industry professionals and there’s optimism out there that as the interest rates start to come down, that we’re going to start seeing more buyers enter the marketplace which is in turn is going to raise the prices as the demand rises in most of the markets across Canada. So, consumers are thinking it’s a positive outlook and prices are going to rise and a lot of people in my opinion are trying to get into the market before these prices start to go up and before this new buyer demand comes into the marketplace.
Let’s talk about some more stats within the overall market. Currently in the Halifax Real Estate market we are in a sellers market. It’s a pretty hot market overall if you’re looking to buy a home and the reality is there’s very limited choices. Presently, across Halifax, we only have about 800 active residential listings for sale and this works out to just over 2 months of listing inventory. This has been pretty consistent over the last 6 months generally speaking, hovering between 2 and 2.5 months of listing inventory.
However, this does change drastically depending on the price point that you’re searching in, for example, in the price range up to 500k in terms of a list price we only have 0.7 months of listing inventory. This is extremely low and an excellent sellers market. Homes listed from $500,000 up to $750,000, we have our general average in Halifax which is around two months of listing inventory for this price range. Still a sellers market but there is more inventory in this price range than in the lower price range of under $500,000. Over $750,000 we have 6 months of listing inventory in this price range so there is a lot more inventory and that would be more of what would be considered a buyers market.
To put things in perspective, right now we only have 800 active listings across all of the Halifax Real Estate market regardless of the price point. Homes priced up to $500,000 price range, we only have about 130 or 140 listings for sale right now, which again is extremely extremely low. So yes as a general statement in Halifax we have a lot more inventory now than we did at the peak of the market in spring of 2022. But, we need much more inventory in the $500,000 range to level out the market.
In general across the HRM we’re seeing a lot of buyers competing over houses and the prices are remaining pretty strong.
In terms of the list to sale price ratio so far this year we’re sitting at about 101% which is very similar to last year at the same time which was about 107%. But if you compare that back to 2022, listing to sale ration was at 125%, so the difference there being that in 2022 we were underpricing homes by about $50,000 to $100,000 depending on the situation. Whereas now, the listing strategy for most agents and sellers has been to list their home at market value or just slightly under depending on what kind of price point it’s in and what kind of home and the neighbourhood it’s in.
If you’re looking to sell a home in terms of the timing, it’s taking an average of 41 days to sell a home in Halifax right now, which is 9 days more than the same time period in 2023. So, yes it is taking a little bit longer on average to sell a home so far this year compared to last year but at the same time a lot of homes are selling very quickly and for top dollar.
Currently, about half the sales so far this year have happened in two weeks or less and about 2/3 of the sales so far this year have happened in a month or less. Even though the average is a little bit higher this year, some sales have had very high days on market which is skewing that average and because we still have less than 1000 sales in HRM, a few of these are skewing that number. But overall there are still a ton of sales happening in a few days or a few weeks and not taking two, three or four months to sell. And, last but certainly not least, we’re still seeing a ton of competing offers in the Halifax Real Estate market especially in that lower price bracket for anything up to $500,000.
So far this year we’ve seen about 28% of the homes sell for over the asking price for approximately $29,000 over the asking price. If I look at how many listings have sold at the asking price or higher that would be 40%. If you’re looking for a home in the Halifax under $500,000, there is still a very good chance that you’re going to be competing. With that being said, many homes are selling at the asking price or higher and a potion of them are selling under the asking price.
So, if you’re looking for a home you need to make sure you’re working with a buyer agent who’s going to be diligent, who’s going to keep tabs on the listings that are not selling super quick because those ones could be a good opportunity for you to get into something under the asking price without having to compete with a bunch of buyers for the same property.
There you have it, a lot of stats and a boat load of numbers being thrown at you but what does it really all mean? Depending on the price range that you’re looking to buy or sell a home in and what neighbourhood it is located in, could be a very very different experience for you.In order to fully comprehend the significance of the numerous statistics and figures presented, it is essential to delve deeper into their implications. The specific range of prices within which you are aiming to purchase or sell a property, coupled with the particular neighborhood it is situated in, can greatly influence your overall experience.
All the best….
Johnny Dulong
Family Real Estate Advisor
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