Welcome back to our blog! Today we are taking an in-depth look at the Halifax real estate market for the month of June 2023. In this blog post, Brenda K from the Halifax Home Selling Group, accompanied by the Sweet Miss Frankie, will provide valuable insights into the current state of the market. Let's delve into the details as we explore market trends, unit sales, inventory, pricing, and more in the beautiful and vibrant city of Halifax, Nova Scotia!
Active Listings and Unit Sales:
Let's get into it starting with active listings. For June 2023 Halifax boasted 806 active listings, indicating an increase compared to the previous year. However, when we examine unit sales, we observed a decline from 642 in 2022 to 590 in 2023. This decrease in unit sales, coupled with a rise in inventory, prompts us to investigate the factors behind this trend.
Days on the Market:
Several factors contribute to the current state of the Halifax real estate market. Interest rates play a crucial role in shaping buyer behavior, while the persistently high demand in Halifax continues to impact the market dynamics. Furthermore, it is important to note that the average days on market in Halifax presently stands at 22, as opposed to 12 in the same period last year and 11 in 2021. This figure reminds us of the significant change that occurred in 2020 when the average days on market soared to 46 due mostly to the pandemic. Thus, the market remains in favor of sellers, with houses typically selling within 0 to 90 days.
Inventory and Average Price:
In terms of inventory, Halifax currently possesses enough housing stock to last just over two months if no new listings were to emerge. This reflects an increase from the previous year, which stood at just over one month or five weeks. In 2021, the city had less than a month's worth of inventory.
Turning to the average price, homes in Halifax now command an average price of $582,780, surpassing the 2022 figure of $557,743. However, while the increase may not be considered significant, it's still a great appreciation to see year-over-year. Traditionally, Halifax has experienced annual equity growth between two to four percent. While the city witnessed a substantial jump from $368,000 in 2020 to $473,000 in 2021, followed by an increase to $557,000 in 2022, sustaining such growth rates might pose challenges for future generations aspiring to enter the housing market. We need to remain wary of this and protect future home buyers while maintaining a realistic (and sustainable) growth in average price.
List Price to Sell Price Ratio:
Another significant metric in the Halifax real estate market is the list price to sell price ratio. Currently, this ratio stands at 103 percent, surpassing the typical range of 97 to 99 percent. The elevated ratio suggests high demand and potentially diverse pricing strategies employed by some agents who may price properties slightly lower to stimulate greater demand. While this may create a sense of urgency among buyers, it also poses challenges in accurately determining the optimal price for a property.
Appreciation and Sustainable Growth:
Halifax has experienced appreciation at a rate of 4.5 percent, surpassing the traditional range of two to four percent. Notably, the city witnessed an astonishing 28.6 percent equity growth from 2020 to 2021, followed by a 17 percent increase from 2021 to 2022. While homeowners undoubtedly benefit from such appreciation, it is essential to consider the long-term sustainability of these growth rates and the potential implications for future homebuyers.
Unit Sales Highlights:
In the previous week, Sackville-Beaver Bank emerged as the area with the highest unit sales, with 48 units sold. And Fairview (a community we love!) only saw 4 sales this month.
Average Sold Price Highlights:
Regarding the average sold price, South end Halifax reached the highest figure at $818,000, while Halifax County East recorded a more affordable price of $332,000. This highlights the possibility of expanding one's search radius to find the desired home within a specific budget. Exploring areas such as Enfield, Elmsdale, and the developing region of Stewiacke might offer promising opportunities, particularly as remote work becomes more prevalent.
Days on Market Highlights:
Analyzing the average days on market, we observe that South Halifax and Halifax County East both reported 44 days, suggesting that a property in South Halifax might have been priced slightly higher, affecting the overall average. In contrast, Central Halifax stood out with an impressively short average of five days on the market.
In conclusion, the Halifax real estate market in June demonstrates a unique set of dynamics. Overall we note unit sales have decreased, inventory levels remain low; resulting in a strong seller's market in Halifax. The average price has shown moderate growth, and the list price to sell price ratio has surpassed previous norms. Halifax continues to experience appreciation. By staying informed about the local market and collaborating with professionals like Brenda K from the Halifax Home Selling Group, individuals can navigate the Halifax real estate landscape more effectively. Feel free to reach out to our team for more personalized insights and guidance on the Halifax real estate market!
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Stay Informed About Halifax Real Estate:
For more specific insights into your neighborhood, click the calendar link below. Whether you’re considering buying or selling a property in Halifax, Brenda K from the Halifax Home Selling Group is ready to assist you. Schedule a real estate discovery call to discuss your plans and benefit from our extensive expertise. That wraps up our Halifax Real Estate Market Update for June 2023. Stay tuned for more updates and analysis from Brenda K and the Halifax Home Selling Group.
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For weekly and monthly updates on the Halifax real estate market, tune into @HalifaxRealEstate on YouTube. 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!
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