Remember when everyone was predicting a crash in the Halifax real estate market last year? Fast forward to October 2024, and we see a different story unfolding. Home sales are up 21%, and home prices have increased by 9% compared to the same month last year. This was supposed to be a slow year for Halifax real estate, but the numbers tell a different tale. In this blog post, we'll review these statistics and discuss the factors contributing to the current market conditions, including increased demand and interest rates. Stay with us until the end, as we'll also explore what these trends mean for potential home buyers and sellers in Halifax.
Year-to-Date Review: January to October 2024
From January 1st to October 31st, 2024, the Halifax Regional Municipality (HRM) recorded over 4,500 home sales, marking an 8% increase over the same period in 2023. Not only are more homes being sold, but they are also fetching higher prices. The average home price this year stands just under $580,000, a 4.5% rise compared to 2023. Currently, there are just over a thousand homes for sale in the HRM, providing a snapshot of the market's dynamics.
October 2024 vs. October 2023
In October 2023, the average sale price across the HRM was just over $528,000. Fast forward to October 2024, and that figure has risen by 9% to just under $576,000. This significant year-over-year jump signals a robust market. With no signs of prices dropping in the coming months, October also saw a 21% increase in total sales, from 397 in October 2023 to 480 in October 2024, making it a strong month for Halifax real estate.
Current Market Conditions in HRM
As mentioned, there are around 1,000 homes for sale in the HRM, with inventory levels translating to about 2.2 months of listings. This indicates a sellers' market. Compared to the same timeframe last year, when the listing inventory was slightly higher, the current situation highlights a demand that exceeds supply. This imbalance leads to competitive bidding and quick sales, particularly challenging for first-time home buyers.
Factors Influencing Market Conditions
Several factors contribute to the current market scenario. Notably, interest rates are beginning to decrease, which will likely boost demand. However, the impact has been limited so far, as the variable rate is primarily affected by the Bank of Canada's announcements, not the fixed rate. Most buyers have opted for fixed-rate mortgages this year, anticipating that rates will eventually fall, increasing consumer confidence in the market's stability.
Additionally, more people are staying in their homes longer due to economic considerations. For instance, baby boomers prefer staying put rather than downsizing to expensive rentals. Similarly, homeowners with low mortgage rates are less inclined to sell and move, further limiting the number of available listings.
Government Incentives and Their Impact
Recent government incentives, such as potential 2% down payment mortgages through Credit Union if Tim Houston is reelected, aim to increase demand. However, these measures may inadvertently raise prices due to insufficient supply. While housing starts have increased year-over-year, they still fall short of meeting demand, exacerbating the supply deficit.
Future Market Projections
Many industry experts and projections suggest that home prices in the HRM will not decline anytime soon. The fear of missing out (FOMO) is driving buyers to enter the market before prices rise further. Although no one can predict the future with certainty, current data suggests that prices will remain stable or increase in the near term.
Advice for Home Buyers and Sellers
If you're looking to buy a home below the average price range of $575,000 to $600,000, expect stiff competition and potential bidding wars. Conversely, buyers in the luxury market, with homes priced at $800,000 or above, may find more negotiating space, especially outside high-demand areas like the West End and South End of Halifax.
For sellers, understanding your market segment is crucial. For example, if you're selling a semi-detached home in Sackville, which has appreciated significantly over the past few years, you can expect a quick sale at a good price. However, moving up to a higher price bracket might place you in a buyers' market, offering more favorable conditions for purchasers.
In conclusion, the Halifax real estate market remains dynamic, with various factors influencing its trajectory. Whether you're buying or selling, staying informed and consulting with knowledgeable agents is essential. What are your thoughts on the market's future? Share your insights and join the conversation. Thank you for reading, and have a great day!
Comments:
Post Your Comment: