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!

For nearly the past 10 years, Halifax has been one of the fastest-growing cities in Canada. The demand for housing has exploded, rents have skyrocketed, and many renters feel trapped facing rent prices that seem out of control. If they leave their current apartment that's under the rent cap, they're almost certain to face huge increases in their monthly payments. But, is this the result of greedy landlords, or is it a symptom of a larger issue within our housing system?

Current Market Conditions

In the past few years, landlords have been receiving a ton of hate. While I understand the frustration towards the big bad landlord, as many renters have had terrible experiences with landlords, not all landlords are unfair. There are many everyday average Nova Scotians who are landlords, hoping their properties will become significant savings for their retirement.

Rent Increases Over the Years

To get a clear picture of what's happening, let's look at the progression of rents over the last 5 years. In 2019, according to CMHC, the average two-bedroom apartment was about $1,200 a month. Recent data shows this has increased to about $2,500 a month. A quick search on Kijiji within a 20km radius of Halifax reveals that the average price for two-bedroom apartments is $2,355. These are real-life values, and only four of the first 20 ads on Kijiji were under $2,000 a month.

The Effect of the Rent Cap

In November 2020, a rent cap was implemented in Nova Scotia, initially set at 2% and now at 5%. However, with rents doubling over a 5-year span, it is clear this is not working. Many people believe the rent cap does not favor the public in the long term. This regulation has caused landlords to refrain from investing in property maintenance, leading to perceptions of landlords becoming slumlords.

Supply and Demand Imbalance

Nova Scotia is experiencing a housing shortage, with a ratio of eight people added to the province for every one unit of housing being built. This imbalance is only second to Moncton. The costs of new construction are astronomical, due to labor and material shortages, high fees, and lengthy approval timelines. These factors contribute to the high cost of new rental units.

The Role of Government and Developers

The government and municipalities have not built any affordable housing units for 30 years, leaving developers and landlords to shoulder much of the blame for the lack of affordable housing. Many proposed developments were delayed or denied in the past, which exacerbated the current housing crisis.

Challenges Faced by Landlords

For many landlords, costs have risen immensely over the last 5 years. Mortgage payments, insurance, property taxes, utilities, and municipal fees have all increased. If landlords are stuck with pre-rent cap low rents, they struggle to cover expenses. The equity gained from property value increases doesn’t necessarily mean landlords should cash out, as they face capital gains and other financial considerations.

Are Halifax Landlords Being Fair?

Landlords need to pay for things like fixing broken stuff or paying bills. Some landlords might not be nice, but most want to ensure they have enough money to take care of their property. It's important for everyone to be fair and happy. Landlords are private people or companies investing to gain passive income for their future wealth. It is not their mandate to fix the housing crisis.

The Need for More Housing

We have a huge lack of housing in Halifax. The less appealing it is for developers and investors to build more properties, the worse the situation will become. We need the private sector to build quickly and in large quantities to address the housing crisis in Halifax. Blaming developers and landlords alone is incorrect; the real issue is a rapidly growing city with a huge lack of affordable housing.

What do you think? Are landlords in Halifax taking advantage of renters, or is this just the natural progression of the housing crisis in our city? Leave a comment below and let me know. For more insights on Halifax real estate and our rapidly growing city, check out my blog. Thank you for reading, and have a great day!

We’ve been seeing price increases every year for the last several years in the Halifax real estate market. Currently, the average sale price in the HRM is 82% higher than it was five years ago, or $261,000 higher. The real estate market was supposed to crash a long time ago, but things keep ticking along as they always do. However, I can’t help but wonder: is this sustainable, or will we finally reach a breaking point?

Before I get into it, if you’re new here, my name is Johnny Dulong, and I’ve been a realtor in Halifax for 23 years. If you like this content, just go ahead and hit that like button and subscribe. If you’re thinking about making a move in the Halifax-Dartmouth area or if you just want to talk about the real estate market, you can reach out to me anytime.

For context, five years ago in the HRM, our average sale price was about $319,000. That’s gone up about 82% to $580,000 today. If I back it up even more and go all the way back to 1980, the average sale price increase year-over-year since 1980 is 5.7%. In all that time since 1980, there’s only been one year that the average sale price has gone down in HRM year-over-year, and that was back in 1995. It was very minimal, almost just a blip on the radar.

Even if I look at the 5.7% year-over-year growth on average, many of you might say that includes the last few years of the pandemic market, which were really crazy. Yes, they were. In 2020, we saw about a 15% increase from 2019. Then in 2021, sale prices jumped a further 26%, and in 2022, they went up another 16%. But hang on a second—even if I take out those big three years (2020, 2021, and 2022), from 1980 to 2019, the average growth year-over-year is still 4.8%. For argument’s sake, let’s call it 5% average year-over-year growth, which is what we’re accustomed to seeing in the HRM.

If we take these stats and apply them to future years, here’s what it looks like: three years from now, with a 5% growth year-over-year, we’d be at about $671,000 average purchase price. Five years from now, we’d be at about $740,000 average sale price, and in 10 years from now, we’d be at about $945,000 average sale price across the HRM.

I’m a big believer that history will repeat itself. However, to be honest, when I look at these five and ten-year projections for the average sale price based on a 5% growth year-over-year across the HRM, it’s a really hard number for me to wrap my head around. It doesn’t matter what I think about the metrics or anything like that; it’s just a very difficult number to comprehend. Especially when you consider that right now, even at $580,000, real estate prices are considered very expensive here in Halifax. The thought of almost doubling that is pretty insane to me, especially when people are struggling financially, even outside the real estate world, just with the overall cost of living here in Nova Scotia.

Here’s the whole point of this video: when I look at the metrics, the stats, and everything happening around Nova Scotia and Halifax in the housing market, this is what I’m talking about. Right now, we have very little supply for the demand that we currently have. We’re adding a ton of people to the province every year—about eight people for every one unit of housing that we’re building. We’re adding over 30,000 people to the province every year. I forget the exact number, but it’s a big one. Based on the current situation, we’re not building enough houses. For context, in Nova Scotia, we’re only building about 4,500 houses a year. On top of that, rates are projected to decrease soon, which will likely bring more buyer demand into the market and put upward pressure on pricing.

My point is, all these metrics lead me to believe that this trend is not going to start going backward anytime soon. I think it’s likely to keep moving upward. On the other hand, when I consider that we have some of the highest taxes, lowest wages, and highest expenses and cost of living in the country, it’s hard for me to wrap my head around those five and ten-year projections I talked about earlier. It brings forth the question: are we about to hit the breaking point? Are we getting to a point where people just won’t be able to afford homes? If they can’t afford them, there will be less demand in the market, which means supply will increase, potentially leading to a decrease in price points. But to be honest, I don’t see that happening.

I understand that might be an unpopular opinion, and that’s fine. Everyone is entitled to their own opinion. If you have one, drop it in the comments. Do you think the market’s going to crash? Do you think we’re hitting that breaking point? Or do you think things will keep steadily moving ahead as they always have, at least since I pulled those stats back from 1980? It’s a good question, and the truth is, nobody really knows. I can tell you that if you think I’m not privy to it, well, I live in Halifax. I understand the cost of living. I feel the cost of living when I look at my tax bill, utility bills, gas bill, and food bill. I feel that pinch just like everybody else does. On top of that, I’ve been a real estate agent for 23 years. For example, almost every time I’m writing an offer, I think it’s a bit crazy because I remember the price points from five years ago like it was yesterday. If anything, if we see any softening at all, I think it will just be a more stagnant period that will allow wages and such to catch up. But truthfully, I don’t see that happening, and I don’t see prices going down. If they start going down, people simply won’t move. They won’t sell and lose $100,000 on their biggest investment just because they want to move. The only people moving in a market like that would be those forced to move—due to divorce, death in the family, moving out of the province, or financial reasons.

My point is, I don’t think the market is going to go down. But again, nobody really knows. You’re entitled to your opinion, and I’d love to hear about it in the comments below. Here’s the big thing I want to talk about as well. I understand that five and ten-year projection I showed earlier is crazy and almost a scary number to wrap your head around. But my point is, every single decade, that number seemed crazy until it happened. Let’s take a look at these numbers. In 1980, the average sale price was $53,000. Fast forward 10 years to 1990, it’s $97,000—that’s an 83% increase in a decade. In 2000, it was a 32% increase to $128,000. By 2010, it was $254,000, almost a 100% increase, doubling from 2000 to 2010. In 2020, it went up 46% from the previous decade to $370,000. Just to reiterate, right now it’s $580,000 across the HRM.

On top of this, think about everything that’s happened since 1980. We had crazy interest rates, tons of stuff going on in the world, a complete financial crisis, and the market still ticked along at its average of almost 5% year-over-year here in small old Halifax, Nova Scotia. My point is, it always seems crazy until it’s right in front of your eyes. It always seems crazy until it’s right there. I remember people in 2021 talking about waiting for the market to cool down before buying a house. Many of those people still haven’t bought. But think about this: if you did buy in 2021 at an average purchase price in HRM, today in 2024, you would have approximately $120,000 of equity in your property as an average sale price statement. That’s not including what you’ve paid off on the mortgage in those three years, which I know would be minimal based on the interest rates. My point is, it always seems crazy until it’s right in front of your face.

So, where will we be in 10 years? Nobody really knows. You’re entitled to your opinion, and if you’re still here watching, you obviously have a bit of interest in this topic. I would love to hear about it in the comments below. As for me, I’m not going to sit on the fence on this one. I’ll give you my opinion: if I were a betting man, I would bet on around a 5% increase year-over-year for the next 10 years, just like we’ve been seeing since 1980. That’s my honest opinion. I think it’s going to be slow and steady, the way it’s always been. I think history will repeat itself. One thing is for sure: no matter what the outcome, it is definitely going to be an interesting time to be living on the east coast of Canada.

Until next time, thank you so much for connecting. I really appreciate your support, and have a great day.

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

Introducing the First Home Savings Account: A Tax-Advantaged Solution for Canadian Homebuyers

If you’re in the market for a home — and even if you’re not — you’ve probably  heard about the new First Home Savings Account. These tax-advantaged accounts can help you save  up to $40,000 toward your first home. And if you invest that money, it could turn into even more. Because it’s a government program, how it works can seem a little complicated.  But we’re here to help. Here are some of the most important things to know: So to open an FHSA you just have to be between 18 and 71 years old,  living in Canada and you can’t be living in a home owned by you  or your spouse in the year that you open the account or the four years before it. And you have to live in the home you buy. So no rental properties or weekend cottages! You can deposit up to eight thousand dollars per year in the account until  you’ve contributed forty thousand.

FHSA: A Tax-Deductible and Versatile Option for Homebuyers and Investors

Those deposits can be claimed as a tax deduction. The money in it can be invested in a bunch of things including stocks and  ETFs or even a savings account or high interest savings portfolio. Unlike RRSPs or TFSAs, you start accumulating room in your FHSA only after you open it. So if you’re  even considering buying a home, it’s probably worth opening one as soon as possible. And if  you don’t end up buying a home there are ways to take your money out without tax implications. You have 15 years from the time you open your account to put the money toward your first home.  If you want to withdraw that money for anything else it’s possible,  but you’ll have to pay taxes on it. One thing about FHSAs that a lot of people overlook: you don’t actually have to use it  toward a home. Since you can transfer your FHSA balance into a retirement account — totally  tax-free — FHSAs can effectively offer a $40,000 boost to your current savings cap.

Understanding the Differences Between TFSA and FHSA: Funding Limits, Rules, and Tax Implications Explained

If you have any questions, our advisors are always available to help.  Stick around for a few seconds, because in the next part of this video I’ll be answering 6 of the most common FHSA questions we’ve been asked. So, both are tax-sheltered accounts, but each one has its own annual funding limits,  and each has different rules–and tax implications–for withdrawals.  With a TFSA, you can deposit a fixed amount each year. In 2023, that limit was $6,500.  It doesn’t reduce your taxes owed for the year, but that money, along with any gains,  can be withdrawn at any time and for any purpose, without penalty or taxes. With an FHSA, you can also deposit a fixed amount each year. It’s capped at $8,000 per year,  for a maximum of $40,000. Unlike with a TFSA, though, FHSA contribution room  is not based on your age. It actually doesn’t start accumulating until you open an account.  With an FHSA, contributions do reduce your taxable income for the year.

Comparison of RRSP and FHSA for Home Buyers

And you’re not  taxed on that money — or any gains — when you withdraw it to buy your first home. So the big difference between an RRSP and an FHSA — at least when it comes to withdrawing money  to use toward a home — is that you have to pay that money back to your RRSP within 15 years.  Otherwise you get taxed. The FHSA doesn’t have that payback requirement. So for many people,  that means the FHSA is a great place to start saving for a home. After they  max out those contributions, then they might start saving in an RRSP. Yes. So the Home Buyer’s Plan lets you withdraw up to $35,000 from your RRSP, tax-free,  to use toward the purchase of a home. But you will have to repay yourself within 15 years of  the withdrawal. You can combine that money with the money in your FHSA. And if you’re buying  with a partner who has their own accounts, you can essentially double the money that you have available.

Considerations for Transferring Funds from RRSP to FHSA: Assessing the Benefits and Drawbacks

So you might be tempted to transfer money from your RRSP to your FHSA,  but whether you should depends on your circumstances. If you have new savings to put into your FHSA,  you can reduce your taxable income by as much as $8,000 for the year. But if you were to move  $8,000 from your RRSP to your FHSA, you wouldn’t get that benefit. Now if you don’t have new savings available to add to your FHSA, but you do have more than  $35,000 in your RRSP, you could transfer some of that money to your FHSA. How much depends on how  much contribution space you’ve accumulated. The benefit of doing that would be that you  can access more of your savings for the purchase of your first home. There is a downside, though:  If you transfer that money from your RRSP, you lose that contribution room permanently.

Important Considerations for Using your FHSAs for Home Purchase and Retirement Savings

Even if  you wanted to pay it back, you couldn’t, so you’re reducing your ability to save for retirement. So when you’re ready to purchase your home, you’ll need to fill out Form RC725. You will be answer a few questions and complete the form. Once you have your money,  the clock starts ticking. You need to close on your home by October 1st of the year after  you withdraw your money. Otherwise the CRA will tax you retroactively. If you have  any more questions maybe even ones that aren’t about FHSAs we’re ready to answer those too.

DOWNGRADED 2024 Nova Scotia Real Estate Forecast!

Back in July, the Canadian Real Estate Association had the Canadian real estate prices for 2024 forecasted to rise by 3% and Nova Scotia was the highest forecast on this list at 8.1%. This was followed by Alberta at 6.8% PEI at 4.7%, New Brunswick at 3.

6%, and then it drops off to 3 % and under for every other province.

This forecasted, at 8.1% growth had us going from about $420,000, all the way up to $456,000 in 2024. But now, a few months later, the Canadian Real Estate Association has updated their housing market Outlook and we’re no longer on top of that list and they’ve made some major major changes to the numbers in terms of price points in 2024. CREA now has us forecasted that only a 2% growth year-over-year from 2023, and this would have us arriving at just about $427,000, and this 2% growth is still above what the Canadian average is forecasted to be at 1.

5%. And it’s interesting because the two real estate, juggernauts in Canada, BC and Ontario are set for pretty minimum growth with BC coming in at only a 1.2% forecasted growth and Ontario coming in at only a 0.2% forecasted growth for 2024. And even though our Price Forecast has been downgraded from 8.

1% to 2%, this still puts us at fifth on the list sitting behind Alberta at 4.8% growth, New Brunswick at 2.7% growth, NFLD at 2.6% growth and Quebec at 2.1% growth.

Now in terms of sales activity, which is the number of homes sold in Canada. The country is expected to rebound with 9% growth in the volume of sales in 2024, and this is downgraded from their midyear forecast, which was set at 11% growth in sales activity. In terms of the Nova Scotia sales, we’re forecasted to be second on the list in Canada at a 10.4% growth in sales activity next year – and this has us only behind Ontario who’s sitting at 10.8% for sales activity growth in 2024 and this number of 10.

4% growth is actually up from the previous forecast at the Midway point of the year, which had a sitting at 9.9% growth. From a national perspective, home sales have quieted down quite a bit after a pretty busy spring market, which I would consider is in line with a more normal year in the real estate market for a typical year. The real estate market would generally experience EBs and flows at different times of the year, so we’d have a pretty busy spring and then things would quiet down a little bit in the summer and then we’d usually see a big uptick in the fall, which we haven’t really seen this year. Yes, it’s still relatively busy, but not nearly as busy as it could be, and I would say that a big factor is due the rate hikes in June and July, which obviously severely affected affordability and consumer confidence across the country.

And this is a big reason why CREA has downgraded their forecast for 2024, because the sentiment out there is that rates are going to stay higher for longer and because of this they’ve downgraded their forecast in both price and sales growth going forward.

Obviously, one of the biggest factors in how the real estate market is going to play out in Atlantic Canada and across the country in 2024 is going to reflect what happens with the interest rates. Based on what I’m reading, most people are seeming to believe that we’re done with the rate hikes for now, or we might see one more between now and the spring, but they’re likely just to kind of stay put where things are at.

Yesterday, I listened to a presentation from an economist at CIBC, and his thoughts were that the Bank of Canada has already overcooked the rates and he expects them to start coming down at about the halfway point or the 3/4 point of 2024. But, only time will tell.

This will be a huge, huge factor in how the real estate market plays out next year. As a general statement, this forecast is mostly positive for the Atlantic provinces and other than Alberta, the Atlantic provinces are next in line in terms of price growth.

Forecasting in 2024, three of the four Atlantic provinces are forecasted to be above the average price growth of 1.5% and all of them are at the average or higher. At this point in the year, Nova Scotia year to date, up to the end of September, sales volume are down about 20.

5% year-over-year from 2022 to this year. In terms of price points, we’re up slightly at 1.5% growth, which puts us sitting right around $426,500. Personally, at this point, I would suggest that critics are a little bit low on their 2% forecast for 2024. I would expect this number to be more in the 3 to 4.

5% growth range year-over-year, which would have us sitting at about $439,000 to $446,500 as an average sale price in Nova Scotia in 2024. I would expect this to be anchored by our increased growth of population and simply the lack of supply. The amount of demand that we’re currently seeing in our Market will have a lot of upward pressure on pricing, especially if the rates start to adjust downward at the Midway point of 2024. I also feel, a lot of buyers will get off the fence and re-enter the housing market and currently in Nova Scotia we’re adding about 7.8 new people for every one unit of housing being built.

So, if you think this is going to slow down anytime soon, I would expect just the opposite and the truth is we don’t have enough housing currently for the people who are in our province and we’re continuing to add people at an alarming rate.

Share this with people who may be interested in being educated in the Halifax real estate market and until next time. Thank you so much for reading. I really appreciate your support and have a great day.

Introduction

As the vibrant coastal city of Halifax continues to attract residents and investors alike, many are eagerly looking forward to the real estate market’s performance in the coming years. In this article, we will delve into the Halifax real estate forecast for 2024, highlighting key trends and insights that can aid prospective homebuyers in their decision-making process. Expanding on the opportunities presented by the city’s thriving market, we will explore the benefits and considerations for those seeking to buy a house in Halifax.

Halifax Real Estate Market Overview for 2024

Upward Growth Trajectory

The Halifax real estate market shows promising signs of growth as it heads into 2024. According to industry experts, housing prices in Halifax are projected to experience a steady rise over the next few years.

This upward trajectory can be attributed to various factors such as the city’s strong economy, population growth, and increasing demand for housing. These factors combine to create a favorable environment for both buyers and sellers in the Halifax real estate market.

Population Expansion and Economic Stability

Halifax, the capital of Nova Scotia, boasts a thriving economy and a rich cultural heritage that attracts people from all walks of life. The city’s stable job market, coupled with its renowned academic institutions and quality of life, has contributed to a consistent influx of new residents. The growing population has created a persistent demand for housing, further fueling the real estate market’s growth.

These favorable economic conditions make Halifax an ideal location for individuals considering homeownership.

Diverse Neighborhoods and Housing Options

Halifax offers a range of diverse neighborhoods, each with its distinct charm and character. From historic districts like Downtown Halifax and Waterfront to family-friendly suburbs such as Bedford and Dartmouth, prospective buyers can choose from a variety of options that suit their preferences. The city’s real estate inventory comprises apartments, townhouses, and detached houses, accommodating various lifestyles and budgets. With such versatility, potential homeowners can find their dream property in Halifax.

Tips for Buying a House in Halifax

Research the Market and Set a Budget

Before embarking on the journey of purchasing a house in Halifax, it is vital to conduct thorough research. Familiarize yourself with the current market conditions, trends, and pricing. This knowledge will help you set a realistic budget and understand the kind of property you can afford within Halifax’s real estate market. Taking the time to evaluate your financial capabilities and desired features will enable you to make informed decisions and avoid unnecessary financial strain.

Partner with a Knowledgeable Local Realtor

Navigating the Halifax real estate market can be complex, especially for first-time buyers.

To ensure a smooth and successful buying experience, it is highly recommended to seek the assistance of a reputable local realtor. A knowledgeable real estate agent will possess valuable insights into the market, neighborhood dynamics, and available properties, helping you find the ideal home that aligns with your preferences and budget.

Consider Long-Term Value and Growth Potential

When purchasing a house in Halifax, it is essential to look beyond the immediate appeal and consider the long-term value and growth potential of the property. Factors such as proximity to amenities, transportation links, and upcoming infrastructure developments can greatly influence a property’s appreciation over time. By evaluating these aspects, you can make an investment that not only fulfills your current needs but also provides potential returns in the future.

Conclusion

In conclusion, the Halifax real estate market in 2024 presents a promising outlook for homebuyers. With a projected upward trajectory, economic stability, and diverse housing options, Halifax is an attractive destination for those looking to invest in real estate. By conducting thorough research, setting a budget, and leveraging the expertise of a local realtor, prospective buyers can confidently navigate the market and find their dream home in this dynamic coastal city. So, if you’re considering buying a house in Halifax, seize the opportunity and embark on a fruitful real estate journey in this vibrant and thriving city.

CREA Forecasts Nova Scotia to Have Highest Price Growth in Canadian Housing Market in 2024

The Canadian Real Estate Association (CREA) has made a new prediction about houses in Canada. They think that in the year 2023 and 2024, houses in a place called Nova Scotia will become more expensive. This is good news for people who already own houses there. But it’s not good news for people who are trying to buy their first house, because it will be harder for them to afford one. In April and May, a lot of people were buying houses because they felt confident that the prices were staying the same and the Bank of Canada would keep interest rates low.

CREA Downgrades Forecast for 2023-2024 in Response to Bank of Canada Rate Hikes, Nova Scotia Homeowners Benefit

The Bank of Canada made a surprise decision and raised rates. This might make people feel unsure about buying things. CREA, a group that predicts the housing market, changed their forecast because of this. They think the housing market won’t grow as much as before.

But don’t worry! They still think the housing market will get better in the future. They predict that home sales will go up by 11.2 percent in 2024. The price of homes will also go up by 3 percent in 2024.

But here’s some good news for people in Nova Scotia! The price of homes there will go up even more than 3 percent in 2024. This will make Nova Scotia homeowners happy.

Nova Scotia Real Estate Market Outperforms National Average with Promising Sales Forecast for 2023 and 2024

Just before I get into the Nova Scotia specific numbers, if you’re new here my name is Johnny Dulong and I’ve been a Halifax realtor for 21 years now and if you’re looking to be educated on the Halifax real estate market, then this is the site for you. And if you’re thinking about making a move in Halifax or if you’d like to chat with me about the current real estate market and the HRM, you can reach out to me anytime by clicking the link below and choose a time. So here is Nova Scotia’s specific numbers for the forecast of 2023 and 2024 and spoiler alert it’s looking far better than a lot of the other provinces in the country in terms of the number of home sales in the province. We’re sitting right now at 5155 sales. For the first six months of 2023 – and this is down 25.4 percent from that same period – in 2022 – The forecast is that we’ll finish the year at 10 688 sales, which would be down 14.4 percent from 2022.

Nova Scotia Sales Forecast: Significant Increase in 2023, Highest Price Surge Expected for 2024

It is quite remarkable to consider that our small province on the eastern coast of Canada, with just over one million residents, is projected to experience the highest price growth in the country in 2024, according to the CREA forecast report. However, it is important to approach these forecasts with caution, as the unpredictability of future events is evident. Prior to the June increase, many economists nationwide believed that interest rates would remain stable, yet we witnessed an increase both in June and July. Additionally, several prominent forecasters have presented expectations for the 2023 calendar year. Players in the real estate industry were way off the mark. So this is what it looked like at the start of the year. In terms of the forecast from some major companies, RBC was forecasting.

Nova Scotia’s Surging Real Estate Market Defies Forecasts, Sets Record Growth in 2024

So that’s pretty crazy to think that our little Province here on the east coast of Canada, with just over a million population, is going to have the highest price growth in Canada in 2024. According to the CREA forecast report now I will end this by saying that you have to take these forecasts with a grain of salt, because the reality is, nobody knows what’s going to happen right before the June increase, a lot of economists across the country were expecting Rates to not go up and guess what we saw an increase in June and we saw an increase in July and, furthermore, a lot of the forecast for the 2023 calendar year by some big name. Players in the real estate industry were way way off. So this is what it looked like at the start of the year.

Nova Scotia Real Estate Forecasts Proven Inaccurate; Uncertainty Prevails for the Market Ahead

According to various forecast predictions, RBC predicted a 5.6% decrease, Re Max predicted an 8% increase, CMHC provided a range of negative 15% to positive 13%, and TD anticipated a 15% decline in Nova Scotia’s real estate market. However, the current data shows a mere 1.7% decrease. It is interesting to note the significant discrepancies between these forecasts, considering the reputable sources behind them. Presently, the province of Nova Scotia has experienced only a 1.7% decrease in average prices from 2023 to 2022, and it is expected that prices will slightly increase by the end of the year. It is evident that these forecasts have proven somewhat inaccurate, highlighting the uncertainty surrounding future developments. Nonetheless, we will continue to provide updates on the real estate market, which promises to be an intriguing and unpredictable landscape over the next 12 plus months.

Real Estate Forecast: Examining Accuracy and Potential for Highest Price Growth in Canada by 2024

I anticipate conducting a thorough review of this forecast one year from now to assess its accuracy and determine if our region truly experiences the highest price growth in Canada in 2024. This analysis will yield valuable insights and allow us to assess our performance against industry expectations. If you are still engaged and have found value in this video, I kindly request that you share it with others who may find it relevant and have an interest in real estate market content. Thank you for your support, it is greatly appreciated. Have a wonderful day!.: www. bit. ly/buybettersellsmarter

Read More: HRM Homefront