Welcome back, Halifax real estate enthusiasts! The middle month of the spring real estate market has come and gone. How did we fare this year compared to last year? Let’s dive into all the real estate action in Halifax for May 2024.
May Market Overview
May is the pivotal month in the spring real estate market. April sees buyers and sellers just getting started, May hits full tilt, and June tends to taper off a bit. Did you know that June 30th is the busiest day of the year for real estate closings? Most of the April and May sales close quickly. If you need a real estate lawyer for that day, book them now!
I’m Brenda K with the Halifax Home Selling Group, and alongside me is the sweet Miss Frankie who keeps me on track every day. Thanks to all my lovers of real estate, I hope you continue to enjoy our updates. I’m always available by text, email, or phone if you’d like to chat real estate or anything else!
Hopefully, June will be warmer than May in Halifax! Even though the weather wasn’t as warm as we’d like, the real estate market heated up but wasn’t as hot as last year. Let’s dive into the market activity for May 2024 shall we?
Inventory and Listings
May 2024 saw more active listings at 985 homes for sale compared to 804 active listings in 2023, a 22% increase. Why is the number of active listings important? More inventory can determine if we stay in a seller’s market or shift into a buyer’s market. The level of inventory and days on market define which market we are in. We are still in a seller’s market in Halifax. In 2019, we had a balanced market with 2,150 active listings. It's hard to imagine, given the changes in the past four years. In 2021, we had only 443 active listings, and now, even with over 100% more listings, we remain in a seller’s market.
Unit Sales
May is typically the busiest month in the spring, so it’s surprising to see we’re down year-over-year. May 2023 had 600 home sales, while May 2024 saw 556 sales. In May 2021, during a frenzied market, 725 homes were sold with less than half the current inventory. Our busy spring market is driven by specific price range demand.
Year-to-date unit sales are up due to a busier winter market this year, with 1,969 home sales in 2024 compared to 1,792 in 2023. This is less than a 10% increase year-over-year. May is trending with offer prices higher than the list price for high-demand ranges.
Days on Market
The average days on market remain around 30 days. This is driven by highs and lows, with homes under $600,000 averaging 20 days on the market and homes over $600,000 averaging 45 days. Higher-priced luxury homes are sitting longer. We are still in a seller’s market as long as homes are selling within 90 days of listing.
Months Supply and Absorption Rate
Months supply, indicating the absorption rate if no other listings came on, is just over 2 months compared to just over one month last year. The absorption rate will continue to rise as inventory increases. This report focuses on the Halifax regional market, not the entire mainland NS.
Average Sale Price
We continue to be over $600,000 with the average sale price for May 2024 at $606,944. Year-over-year, there’s an increase of $30,000 from May 2023’s average sale price of $576,937. This reasonable equity growth is beneficial, though rapid increases can price many buyers out of the market.
Interest Rates and Market Trends
With a slight increase in interest rates, homeowners with variable rates are most affected. Ideally, we’ll see rates at 4% by year-end. Note that waiting for interest rates to drop may not be beneficial as home prices are trending upward, potentially negating the financial advantage of lower rates.
List Price to Sale Price Ratio
The list price to sale price ratio for May 2024 is at 101.6%, slightly down from 102.9% in May 2023. Appreciation at 5.2% is ideal for steady growth without pushing market prices too high.
Price Points and Market Demand
Lower-priced inventory is declining, making affordable homes harder to find. The demand drives prices, with lower price points selling for an average of $6,000 over the list price. Homes between $400,000 and $500,000 are seeing overbidding at $10,000, and those between $500,000 and $600,000 at $13,000 over list price. Thankfully, the days of bidding significantly over asking seem to be ending.
Curious on your home’s value in today’s market? Comment 'value' below, and we’ll reach out with a complimentary market valuation (no home visit necessary!).
Thank you so much for reading my blog, as always I hope you found it insightful! If you’re thinking of buying, selling, or investing in real estate this summer, we’d love to hear from you! Get in touch with our team today to discuss your plans and goals. Until next time!
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✉️ brendak@brendak.ca
🔗 www.brendak.ca
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