Halifax Real Estate Market Update: February 2023 | Monthly Analysis
Discover the latest insights on Halifax's real estate market in our February 2023 update. Gain valuable information on active listings, unit sales, average days on market, pricing trends, and neighborhood highlights. Click here to schedule a personalized consultation.
In this report, we'll delve into key metrics such as active listings, unit sales, average days on market, pricing trends, and highlight notable neighborhoods. Read on to gain valuable insights into the current state of Halifax's real estate market.
Active Listings and Unit Sales: Halifax currently boasts an impressive 557 active listings, more than double compared to the previous year. However, unit sales only exceeded last year's figures by a narrow margin of approximately eight units. The sales year to date has experienced a decline in the first two months, largely influenced by interest rates. As interest rates rose in the fall, prospective buyers held back, leading to a noticeable impact on February's market statistics.
Average Days on Market and Seller's Market Strength: With an average of 32 days on the market, Halifax continues to thrive as a strong seller's market. The months' supply, assuming no new listings, would last for approximately 1.3 months, equivalent to six weeks. This represents an increase from February 2022 when inventory only lasted for one week. The significant jump in supply from the previous year reflects the evolving market conditions and their influence on the current state of affairs.
Average Price and Bidding Wars: The average price in Halifax has experienced a decline compared to the previous year. While competing offers still exist, the frenzied bidding wars have significantly subsided. As of now, the average price stands at $541,686, offering potential buyers more reasonable pricing options.
List Price to Sell Price Ratio: The list price to sell price ratio is an intriguing metric to explore. In 2021, this ratio reached its peak at 1.06%, signifying the height of bidding wars. Presently, the ratio hovers at 99.9%, indicating a minimal difference between the average list price and the average sell price. Last week, the average list price was $577,740, while the average sell price stood at $577,870, resulting in a mere $130 discrepancy.
Appreciation and Market Sustainability: Appreciation rates have played a significant role in shaping Halifax's real estate market, currently at -5.8%. It's important to note that this negative percentage indicates a more sustainable pricing trend. The market's previous highs were a result of inflated prices during 2021, and such appreciations are not feasible in the long run. The market needed a period of stabilization, which has now occurred, ensuring a more affordable future for prospective homebuyers.
Neighborhood Highlights: Among Halifax's neighborhoods, Bedford recorded the highest number of home sales at 30 units. Conversely, central Halifax saw only four unit home sales, while Dartmouth Manor Park area had two home sales. An interesting observation is the absence of home sales in Fairview, despite its popularity, primarily due to limited inventory. This scarcity underscores the urgent need for more listings in the market.
Average Sold Price and Affordable Options: South end Halifax takes the lead with an average sale price of $900,000. However, for those seeking more affordable options within the Halifax vicinity, Halifax County East presents opportunities with an average single-family home price of $405,000. Eastern Passage offers an excellent price point with single-family homes available for $405,000, further emphasizing the diversity of options within the Halifax area.
Increasing Days on Market and Pricing Adjustments: The average days on market reached its peak in Halifax East at 71 days. In the more generalized Halifax area, Halifax West also experienced 71 days on the market. One factor contributing to this upward trend is pricing, as sellers attempt to maintain prices established during the market frenzy. However, it's crucial to adjust pricing expectations to reflect the current market conditions.
Inventory Shortage and Market Demand: The lack of available inventory is a pressing issue in the Halifax real estate market. As of last week, there were only 51 homes priced between $250,000 and $400,000, a price range that caters to first-time homebuyers. This segment represents a significant portion of the market, yet only comprises 8% of all listings. To address this shortage, baby boomers looking to downsize have a unique opportunity to capitalize on the market and free up inventory. The demand for more listings is crucial to alleviate pricing pressures and bidding wars in Halifax.
To learn more about what's happening in your neighborhood or explore your options, click the calendar link below to schedule a personalized consultation. Our team is here to provide valuable insights and help guide you through the ever-evolving Halifax real estate landscape. Cheers!
Watch the full video update here --- > February 2023 Market Update for Halifax-Dartmouth
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