Buying a home is a big decision, especially for first-time homebuyers, upsizers, those in the military relocating to Halifax, and seniors looking to downsize. Many people in Halifax and the surrounding areas are wondering if they should wait for mortgage rates to drop before buying a home. But waiting might mean missing out on the best homes available today.
The Problem: Will Rates Go Down Enough to Make Waiting Worth It?
In recent months, mortgage rates have been a hot topic. Many hope rates will go back to the low levels we saw during the pandemic. But experts say this might not happen soon. Predictions for mortgage rates in 2026 still show them around 6% to 6.4%. This means rates might not drop enough to make a big difference in your buying power.
Here’s what experts are saying:
- Redfin believes rates will be around 6.3%
- Fannie Mae predicts rates to be about 6% in 2026
- The National Association of Home Builders thinks it’ll be 6.17%
- The Mortgage Bankers Association doesn’t see rates dropping below 6% soon
With rates hovering around 6%, waiting for them to get lower might not be the best strategy. Buyers could end up paying more in the long run.
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The Agitation: How Could Waiting Affect Buyers in Halifax?
While waiting for rates to go down, buyers might miss out on current opportunities. Here’s why acting now could be beneficial:
Current Inventory Trends
- Right now, there's a buildup of homes in the market. This can mean better prices and less competition for buyers. But if demand picks up in 2026 and mortgage rates stabilize, competition will likely increase, and prices could rise.
- In the U.S., which can sometimes mirror trends in Canada, inventory is already 20% higher than last year. This sort of inventory growth is important for buyers, giving them more choices today than they might have by 2026.
What If You Wait?
- If everyone waits for the same drop in rates, a rush of buyers will come into the market at the same time, making competition fierce.
- If more demand returns around 2026, buyers might face a surge in home prices. This makes it tougher for first-time buyers or upsizers to find the right home.
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The Solution: Why Acting Now Could Be the Best Move
With all this in mind, here's why buying a home now in Halifax could be the smart decision:
Why Now?
1. Current Market Favourability: With more homes on the market now, buyers, especially those relocating with the military, can negotiate better terms. For upsizers and first-time buyers, acting now locks in homes that fit their needs without bitter bidding wars.
2. Anticipated Buyer Surge: As mentioned, if rates stabilize by 2026, demand will grow. Buying now means avoiding possible price hikes and competition from this anticipated buyer surge.
What Can Buyers Do?
1. First-Time Buyers: Explore neighbourhoods with more options on the market today. Locking in a home now can mean avoiding rising prices later.
2. Upsizers: Look into homes that you might have thought were out of reach. With more available inventory now, houses with extra rooms or larger yards might be more attainable.
3. Military Relocations: With Halifax having centres like HMC Dockyard and Shearwater Heliport, planning ahead and using current inventory levels can simplify relocations, avoiding rushed decisions later when the market tightens.
4. Seniors Downsizing: Now could be ideal for selling current homes and finding smaller, easier-to-manage homes, leveraging today’s market before potential future competition.
Look at Halifax's Local Market
Understanding Halifax’s unique market is crucial. The city and its surrounding regions have specific military and downsizing demands. Potential zonings, taxes, and new housing regulations should be factored in, so local expertise is essential for making informed decisions.
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Conclusion: Make Your Move in Halifax!
Though it might seem smart to wait for rates to drop, the data suggests otherwise. By acting now, first-time homebuyers, upsizers, military members, and seniors can take advantage of the current inventory, avoiding possible price surges and competitive rushes in 2026.
The Halifax real estate market presents opportunities today that might not exist in the future. If you're ready to make a move or just want to explore your options, consider starting now. You’ll have more power to negotiate, more choices, and possibly less stress.
Invest wisely and plant your roots in Halifax today.
Johnny Dulong - Family Real Estate Advisor
Call today .... EXIT tomorrow!
902.209.4761
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