June 2024 Halifax Real Estate Market Update
As the spring real estate market comes to a close, it's time to reflect on how this year compared to last. The month of June plays a pivotal role in determining the final outcome of the spring market. April sees buyers and sellers just getting started, May is when the market hits its peak, and by the end of June, activity begins to taper off. Interestingly, June 30th is the busiest day of the year for real estate closings, with many April and May sales closing quickly.
Market Overview
June 2024 brought a significant increase in active listings, which is a positive development. The market saw nearly 1,000 homes for sale, with 988 active listings, marking a 19% increase over 2023's 832 listings. More inventory is beneficial as it helps determine whether the market favors buyers, sellers, or is balanced. The trend over the past few years shows a steady increase in listings: 22% from 2021 to 2022, 14% from 2022 to 2023, and 16% from 2023 to 2024. However, to reach a balanced market, inventory would need to increase by nearly 50%!
Unit Sales
June is crucial for wrapping up spring sales and setting the tone for the summer market. This year, unit sales are down compared to last year, with 527 home sales in June 2024 versus 612 in June 2023. Many buyers were hesitant due to uncertainty around interest rates. While interest rates may decrease, home prices continue to rise. The busiest price range driving the market is under $550,000, with significant demand in this category.
Year-to-date home sales are nearly on par with last year, with 2,497 homes sold in 2024 compared to 2,402 in 2023, a modest 4% increase. The days on market also increased to 28 days from 22 days last year, indicating a bit of a slower market pace.
Luxury Market
The luxury market remains robust, with 24 homes over a million dollars sold in June 2024, averaging 86 days on market. This price point remains just under the balanced market indicator by four days.
Market Absorption Rate
The months of supply, which indicates the absorption rate, shows that if no new listings came on the market, there is enough inventory for nearly three months, up from just over two months last year. This increase in absorption rate is expected as inventory grows.
Average Sale Price
The average sale price in June 2024 was just under $600,000, at $596,886. This represents a $12,000 increase from May 2023's average sale price of $584,418, a slight 2% rise year-over-year. The market shows modest appreciation, offsetting the high equity growth seen in 2021 and 2022.
Pricing and Market Strategy
The list price to sale price ratio is a critical indicator of market health. In June 2024, this ratio was 101.6%, up from May 2023's 103.9%. Sellers in the $500,000-$600,000 range are particularly driving this trend. It's essential to price homes correctly to align with market expectations and ensure timely sales.
Key Takeaways
- Increased Inventory: More active listings are entering the market, which helps balance the market dynamics.
- Unit Sales Decline: Sales numbers have decreased compared to last year, with many buyers waiting for interest rate changes.
- Luxury Market Stability: High-end homes continue to sell, albeit at a slower pace.
- Market Absorption: The months of supply have increased, indicating a shift towards a more balanced market.
- Price Trends: Average sale prices are rising modestly, maintaining healthy appreciation rates.
Understanding these trends is crucial for both buyers and sellers. Buyers may need to adjust their expectations, while sellers must focus on accurate pricing to attract buyers. The Halifax real estate market continues to evolve, and staying informed helps make the best decisions.
If you're interested in a neighborhood-specific market report, comment 'Value' below, and we'll be happy to provide a complimentary report. Thank you for staying updated with the latest real estate trends in Halifax.
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