Halifax Home Buyers and Sellers Adjust to Market Changes
Recent talk about market corrections, price reductions and sales declines might have you wondering what’s in store for Halifax real estate as the fall market ramps up. RE/MAX NOVA broker Ryan Hartlen offers some insights into what buyers and sellers can expect in the coming months.
Halifax house prices are still strong
After several months of declining sales transactions, Ryan says, there’s no doubt the once red-hot Halifax housing market has cooled down. But it’s too early to say if that will result in major price drops. He says, for now, house prices in the HRM are holding steady. The latest MLS statistics show the average selling price is now $560,792 – over $100,000 more than the year before.
But while prices remain strong, selling strategies have changed. “We’re seeing people who are pricing their homes differently,” explains Ryan. During the peak of the pandemic-fuelled market, sellers often priced their homes on the low side, hoping to draw multiple bids that would push the final price up significantly. “Now, what we’re seeing people are pricing their homes to actually where they want to get.”
Less intense seller’s market
The number of active listings is now triple what it was back in January, but Ryan says Halifax is a seller’s market. It’s just not as intense as it was before. Right now, only about 30 percent of properties are receiving multiple offers – that figure was 80 percent in late 2021 and the first part of 2022.
“It was expected that we would continue to have a strong seller’s market, and I think that’s still happening. It’s just not happening at the feverish pace that we saw last year,” he says.
The main reasons for that are high inflation, rising interest rates and fewer buyers. “All of those things have definitely tempered the intensity of the market, right now.” There’s also been a decrease in the number of people moving to the Halifax-Dartmouth area from other provinces. However, out-of-town buyers still make up between 15 and 20 percent of the market.
A welcome break for buyers
Over the last two years, buyers faced intense competition, bidding wars and escalating prices, which was especially hard for first-time buyers.
The new market realities are bringing them some relief. Ryan expects to soon see more houses on the market, and buyers will have more choices and less competition. “Now it’s a bit more positive. There’s a bit more to choose from and you’re maybe not having to compete at the same level as you were before.”
What’s next for the Halifax real estate market?
Ryan says house prices may go down, but we won’t see any “significant crash” in the market.
While many experts are predicting a major drop in the Canadian real estate market, Ryan still sees a positive story for sellers across Nova Scotia.
“We generally buck those trends a little bit. We’re our own kind of market here, so it’s not cooling off in the sense that it’s a bad time to be a seller or it’s totally changed from a seller’s market to a buyer’s market – that’s not the case.”
He says although changes in the housing market have “moved the needle more towards a balanced market,” there’s still a big inventory shortage. He expects that to improve in the coming months as the market starts to follow a more traditional pattern where more houses come on the market after Labour Day.
Are you thinking about buying or selling a home in Nova Scotia? Contact us today and one of our experienced agents would be happy to help you.
