As we reach the halfway point of summer, it's time to reflect on how the Halifax real estate market performed in July 2024 compared to last year. Typically, July is a quieter month following the bustling spring market, with many people focused on vacation plans rather than home buying or selling. However, this year has brought some surprising trends and data points worth noting.
Market Overview
July 2024 saw an increase in active listings, finally surpassing the 1,000 mark with 1,012 active listings, a significant 20% rise from July 2023's 808 listings. This increase in inventory is a positive sign, as it provides more options for buyers and helps determine whether the market leans towards being a buyer's, seller's, or balanced market. To put this into perspective, the rate of increase in active listings since 2021's market frenzy is a staggering 59%.
When it comes to unit sales, July is often the first month of the slower summer market. Interestingly, the number of sales rose by 14% year over year, with 498 homes sold in July 2024 compared to 425 in July 2023. Many buyers delayed their decisions in the spring, waiting to see how interest rates would fluctuate. Despite some stabilization in interest rates, home prices have continued to climb, which remains a key factor driving market activity.
Year-to-Date Trends
Looking at the broader picture, year-to-date home sales have increased by 5% compared to last year, with 3,000 homes sold in 2024 compared to 2,827 in 2023. While this growth is modest, it highlights the resilience of the market despite the challenges posed by fluctuating interest rates and shifting buyer preferences. It's worth noting that we're past the extraordinary highs of 2021, when year-to-date sales reached 4,618—35% higher than today's numbers.
The days on market have also inched up, now averaging 33 days compared to 28 days last year. This slight increase suggests a return to a more typical, pre-COVID market environment, where homes may take a bit longer to sell.
Luxury Market and Absorption Rate
The luxury home market in Halifax remains strong, with 18 homes selling for over a million dollars in July 2024, and the highest sale just shy of two million. This continued interest in high-end properties is noteworthy, especially as the market adjusts to post-COVID realities.
The absorption rate, which measures how long it would take to sell all the current listings if no new homes came on the market, has also increased. In July 2024, the months' supply reached just over two and a half months, compared to seven weeks (just over two months) in July 2023. This rise in absorption rate reflects the growing inventory and the slowing pace of sales.
Average Sale Price and Market Sentiment
The average sale price in July 2024 was $588,067, edging closer to the $600,000 mark—a milestone many didn't expect to see in Halifax. This figure represents a modest year-over-year increase of about $5,000 from July 2023, which is less than a 1% rise. While this might seem underwhelming compared to the explosive growth seen in previous years, it signals a more stable market environment.
The list-to-sale price ratio, which indicates how close homes are selling to their listing price, was 100.5% in July 2024, down slightly from 101.7% in July 2023. This slight decline suggests that while homes are still selling for close to their asking prices, the market is becoming less competitive.
Key Takeaways for Buyers and Sellers
For buyers, the current market requires a shift in expectations. With rising prices, it may be necessary to adjust the style or location of homes within your budget or consider properties further from the city center. Sellers, on the other hand, must recognize that the days of COVID-inflated pricing are over. Pricing your home correctly is crucial to avoid extended days on market and to align with current buyer expectations.
The Halifax real estate market is gradually returning to pre-COVID norms, with more price reductions and longer days on market becoming the new reality. However, this doesn't mean the market is slowing down; it's simply adjusting to a more sustainable pace.
If you're considering buying or selling a home in Halifax, working with an experienced realtor who understands these market shifts is more important than ever. Our team is here to help you navigate these changes and achieve your real estate goals.
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