Halifax (HRM) Residential Market Statistic Update For Week of July 18th to July 26th 2012
(Previous weeks numbers in brackets)

New Listings:  434 (441, 508, 460, 488)
Sold:  162 (209, 185, 161, 186)
Sale to List Ratio: 37% (47%, 36%, 35%, 38%)
Expired/Cancelled/Withdrawn:  70 (191, 82, 224, 81)
Active Single Family Home: 2979 (2931, 2959, 2938, 2997)
Average Single Family Home List Price:  $277,209 ($288,808, $308,187, $298,840, $292,136)
Average Single Family Home Selling Price:  $271,132  ($281,603, $299,219, $287,605, $284,278)
Average Days on  Market Single Family Home: 93 (81, 72, 84, 69)
Active Condos:  260 (259, 276, 272, 265)
Average Condo Listing Price:  $198,147  ($222,643, $230,070, $291,935, $243,605)
Average Condo Selling Price: $192,370 ($216,906, $224,458, $279,786, $233,500)
Average Days on Market Condos:  50 (37, 64, 50, 91)
*Halifax/Dartmouth Absorption Rate (weeks):  27.1 (25.8, 26.2, 25.6, 25.5)

As we wave goodbye to the tall ships this week in Halifax, so do we wave goodbye to higher property sales. Sales this week dropped ten points falling back down to a rough monthly sales to list ratio average of 37%. Lower number of new additions to the inventory week however we still managed to inflate that number by the lacklustre sales performance. Both single family home and Condo values fell this week  by a good amount and it marks the first time in months that single family home values have dropped below the 280k mark. Average days on market still remains positive with homeowners not waiting too long from list to sale, especially in the condo market. Make sure to come back next wednesday for the July monthly wrap up and don't forget to check out the statistic report on the current Halifax Multi-residential market below. 
 
Have a question about the Halifax Real Estate market? Thinking this might be the time to purchase or list your property? Contact me to advise you on your best plan of action for your real estate transaction and get the most advanced real estate system working for you. Feel free to leave a public comment or question below. Follow me on Twitter to keep up to the minute with all things Halifax real estate @HalifaxRealEst


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So this report is a little premature to the end of the month but I wanted to give everyone a snapshot of the multi-residential market here in Halifax this week as next week is the regular residential report and a busy one. Average sold price took a nose dive this month averaging around the 300k mark

The multi-res market inventory sits right in the middle of the last six years stats this month at 113 units, same as last month. I would suspect the Average sale price drop and the higher inventory level is due to the market domination that duplexes have.

As you can see, duplexes reign supreme accounting for over half of the multi-res market share. Triplex's hold the distant second and fourplex's come in third spot. Their numbers are as follows;
Duplex: 60
Triplex: 20
Fourplex: 10
5-12 Unit: 8
Over 12: 1
Other: 13

With only one unit with over 12 suites available on the market, it seems that there might be a market opportunity for anyone in possession of this type of property. Lots of large developments going on (read last weeks articles below) and with the first signed ship building contract in hand (another article below) it seems the all aspects of the Halifax real estate market are beginning to show the effects. Make sure to come back tomorrow for the weekly residential report and again on the first of august (wow time is flying) for the residential monthly wrap up. Come back regularly to keep up to date on the latest Halifax real estate market news and updates as they happen. 

Have a question about the Halifax Real Estate market? Thinking this might be the time to purchase or list your property? Contact me to advise you on your best plan of action for your real estate transaction and get the most advanced real estate system working for you. Feel free to leave a public comment or question below. Follow me on Twitter to keep up to the minute with all things Halifax real estate @HalifaxRealEst


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Halifax (HRM) Residential Market Statistic Update For Week of July 12th to July 19th 2012

New Listings:  441 (508, 460, 488, 511)
Sold:  209 (185, 161, 186, 206)
Sale to List Ratio: 47% (36%, 35%, 38%, 40%)
Expired/Cancelled/Withdrawn:  191 (82, 224, 81, 114)
Active Single Family Home: 2931 (2959, 2938, 2997, 2968)
Average Single Family Home List Price:  $288,808 ($308,187, $298,840, $292,136, $290,506)
Average Single Family Home Selling Price:  $281,603  ($299,219, $287,605, $284,278, $284,057)
Average Days on  Market Single Family Home: 81 (72, 84, 69, 92)
Active Condos:  259 (276, 272, 265, 267)
Average Condo Listing Price:  $222,643  ($230,070, $291,935, $243,605, $281,089)
Average Condo Selling Price: $216,906 ($224,458, $279,786, $233,500, $265,200)
Average Days on Market Condos:  37 (64, 50, 91, 101)
*Halifax/Dartmouth Absorption Rate (weeks):  25.8 (26.2, 25.6, 25.5, 25)

Maybe its the Tall Ships! Inventory shrank again this week thanks to a smaller then usual new listing addition, a decent showing in sold listings and sellers pulling off the market. As you can see by the number of sales this week, sales are still in positive flow and with the number of properties on the market dwindling, we may be approaching a sellers market sooner then anticipated. If you stopped by the blog earlier in the week I shared a few articles of interest. One last week which gave the nod to officially commence the first of many ship building contracts here in Halifax and the other this week that discussed the projected economy impact that the contracts will have on our already hot market. Something to the tune of 12,000 jobs over the next four years. Still no real signs of that impact yet and we haven't seen any signs of the dreaded "real estate market boom" but the face of the Halifax real estate market has changed, including service.

On a different note. Be sure to get out and take in the Nova Scotia Tall Ship Festival going on in Halifax now and concludes on monday with a "parade of sale". A great event for all ages with lots of things to do and see! Details and schedule of events can be found HERE.
 
Have a question about the Halifax Real Estate market? Thinking this might be the time to purchase or list your property? Contact me to advise you on your best plan of action for your real estate transaction and get the most advanced real estate system working for you. Feel free to leave a public comment or question below. Follow me on Twitter to keep up to the minute with all things Halifax real estate @HalifaxRealEst


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Yet another great article on the effect that the Halifax ship building contract will have on our economy;

BMO releases report on HRM - outlook for economy, housing and labour market - Unemployment rate expected to drop to 4 per cent by 2016, with 12,000 new jobs created - Housing market performing well and residential construction well-supported - BMO offering support to Canadian businesses by making an additional $10 billion in credit available over next three years

HALIFAX, NOVA SCOTIA, Jul 18, 2012 (MARKETWIRE via COMTEX) -- Employment growth in the Halifax Regional Municipality (HRM) is expected to strengthen through 2016, with the addition of about 12,000 new jobs as shipbuilding activity ramps up, according to a special report released today by BMO Capital Markets Economics - Halifax: Growth in its Sails. With the addition of these jobs, report states that the unemployment rate will be pulled down to pre-recession levels of 4 per cent.

The report on HRM is the latest in a series of economic and business overviews for various cities across Canada that will be published by BMO throughout the year.

"The BMO outlook delivers good news to both our residents and investors in the Halifax economy," said Fred Morley, Executive Vice President and Chief Economist of the Greater Halifax Partnership. "We have been working hard to diversify our economy while drawing on our strengths such as shipbuilding, and matching new employment and career opportunities for residents with companies seeking an excellent return on their investment."

"Our commercial clients are confident and making important investments in new equipment, in expanding their operations and in hiring people," said Laura Charlton, District Vice-President, Nova Scotia at BMO Bank of Montreal. "I urge HRM businesses to get their share of the $10 billion in credit BMO has made available, giving them access to the capital they need to grow and get this city firing on all cylinders."

"The contract landed by Irving Shipbuilding to build combat ships for the Royal Canadian Navy will support the Halifax manufacturing and construction sectors for the next decade," said Robert Kavcic, Economist, BMO Capital Markets. "We anticipate that 12,000 new jobs will be created by 2016 as shipbuilding activity ramps up, bringing the unemployment rate down toward 4 per cent."

Real Estate/Construction

Existing home sales totalled nearly 6,600 units in the twelve months to June 2012, the highest level since 2008.

Average prices continue to push to record levels, up 1.1 per cent year over year in June at just over $270,000. However, housing remains affordable in the city with average prices clocking in at less than four times estimated median family income - well below Canada's other major cities.

Non-residential construction has also been strong in recent years, boosted by government stimulus spending and other development such as King's Wharf. Further growth is expected going forward.

Population Growth

Population growth has slowed in Nova Scotia to 1.3 per cent from nearly 2 per cent prior to the recession, raising significant concerns as the demand for skilled labour in HRM is expected to ramp up in the coming years. International immigration is supporting growth, but interprovincial out-migration remains a concern - Nova Scotia saw net outward migration of nearly 3,700 people in the past year.

The full report can be downloaded at http://www.bmonesbittburns.com/economics/reports/20120612/SR120612.pdf .

Halifax (HRM) Residential Market Statistic Update For Week of July 5th to July 12th 2012

New Listings:  508 (460, 488, 511, 507)
Sold:  185 (161, 186, 206, 195)
Sale to List Ratio: 36% (35%, 38%, 40%, 39%)
Expired/Cancelled/Withdrawn:  82 (224, 81, 114, 87)
Active Single Family Home: 2959 (2938, 2997, 2968, 2982)
Average Single Family Home List Price:  $308,187 ($298,840, $292,136, $290,506, $291,325)
Average Single Family Home Selling Price:  $299,319  ($287,605, $284,278, $284,057, $285,079)
Average Days on  Market Single Family Home: 72 (84, 69, 92, 79)
Active Condos:  276 (272, 265, 267, 259)
Average Condo Listing Price:  $230,070  ($291,935, $243,605, $281,089, $276,180)
Average Condo Selling Price: $224,458 ($279,786, $233,500, $265,200, $267,952)
Average Days on Market Condos:  64 (50, 91, 101, 37)
*Halifax/Dartmouth Absorption Rate (weeks):  26.2  (25.6, 25.5, 25, 25.5)

Some good news this week with the defence minister visit and announcement to commence the Halifax shipyard billion dollar contract (Read below). We should start seeing some marginal market activity changes in the short term and more noticeable effects a few months down the road as the contract gets into full swing. With the confirmation of the contract start, this could be the tip that investors, speculators and property owners/buyers needed to gain confidence in the market to fuel their next decision. Nothing out of the ordinary as far as stats are concerned this week. Single family home values tipped over the 300k mark (list) and almost broke the 300k mark in selling prices for the second time this year...almost. There was a gain in inventory this week and the absorption rate increased a little to reflect that fact. Keep a weathered eye on the Halifax real estate blog as I continue to to bring the latest news reports, statistics and information on the current state of the Halifax real estate market.
 
Have a question about the Halifax Real Estate market? Thinking this might be the time to purchase or list your property? Contact me to advise you on your best plan of action for your real estate transaction and get the most advanced real estate system working for you. Feel free to leave a public comment or question below. Follow me on Twitter to keep up to the minute with all things Halifax real estate @HalifaxRealEst


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A great article which features a interview with my broker at Royal Lepage Atlantic. It's always great to know you work with the best.

2012 Halifax house prices forecast to increase 5.2 per cent compared to 2011

HALIFAX, July 10, 2012 /CNW/ - The Royal LePage House Price Survey and Market Survey Forecast released today showed strong year-over-year price appreciation across all housing types surveyed in Halifax, while additional price gains are expected throughout the remainder of the year.

The average price of detached bungalows in Halifax increased by 7.3 per cent to $285,833 over the second quarter of last year, while the average price for standard two-storey homes was up 5.1 per cent to $317,167. Standard condominiums average price increased 5.1 per cent to $205,500.

"Similar to last year, young professionals and investors continue to fuel Halifax's real estate market," states Matt Honsberger, broker of Royal LePage Atlantic. "Market activity is most active in the city's core as many buyers are looking to purchase a property that's close to city amenities."

According to Honsberger, inventory levels are down approximately 10 per cent year-over-year, which has been putting upward pressure on average house prices and reducing average days on market. "Despite this dip, inventory levels in the resale condo market remain healthy as buyer demand is also being met by several new construction projects taking place throughout the area."

Honsberger also notes that low interest rates and strong employment levels continue to play a major role in Halifax's market and will be a vital driving force for the remainder of the year.

Nationally, in the second quarter, standard two-storey homes rose 4.7 per cent year-over-year to $408,423, while detached bungalows increased 5.5 per cent to $376,311. Average prices for standard condominiums increased 3.3 per cent to $245,825. During this period, signs from across the country clearly indicated that the national housing market was at a turning point, with some major regions continuing to grow unabated while others peaked and began to pull back for the first time in three years.

"We have had three years of solid house price appreciation in almost all regions of the country," said Phil Soper, president and CEO of Royal LePage Real Estate Services. "Confidence in Canada's real estate market is sound, but home prices cannot grow faster than salaries and the underlying economy indefinitely. Some regions have reached or perhaps even exceeded the current upper level of price resistance as buyers have embraced an era of historically low mortgage rates."

The first-time buyer segment of the population, which represents up to half or all transactions and where activity strongly correlates to low interest rates, is expected to be slowed by recent regulatory changes that will reduce access to insured mortgages.

"The most recent set of mortgage changes, the fourth in four years, is also the most aggressive. The cumulative impact of these new regulations has created a significantly higher hurdle for young buyers seeking their first home and comes at a time when the market was slowing of its own accord. The timing of this intervention was unfortunate," added Soper.

About the Royal LePage House Price Survey

The Royal LePage House Price Survey is the largest, most comprehensive study of its kind in Canada, with information on seven types of housing in over 250 neighbourhoods from coast to coast.  This release references an abbreviated version of the survey which highlights house price trends for the three most common types of housing in Canada in 90 communities across the country.  A complete database of past and present surveys is available on the Royal LePage Web site at www.royallepage.ca. Current figures will be updated following the complete tabulation of the data for the second quarter 2012. A printable version of the second quarter 2012 survey will be available online on August 9, 2012.

Housing values in the Royal LePage House Price Survey are Royal LePage opinions of fair market value in each location, based on local data and market knowledge provided by Royal LePage residential real estate experts. 

About Royal LePage

Serving Canadians since 1913, Royal LePage is the country's leading provider of services to real estate brokerages, with a network of 14,000 real estate professionals in over 600 locations nationwide. Royal LePage is the only Canadian real estate company to have its own charitable foundation, the Royal LePage Shelter Foundation, dedicated to supporting women's & children's shelters and educational programs aimed at ending domestic violence. Royal LePage is a Brookfield Real Estate Services Inc. company."

Yet another article I find very interesting. I will be curious to see the effect this announcement will have on the Halifax economy. .

The Canadian Press
Published Tuesday, Jul. 10, 2012 11:20AM EDT

HALIFAX -- The federal government has signed a $9.3-million deal with Irving Shipbuilding to get started on the navy shipbuilding contract in Halifax.

Defence Minister Peter MacKay says the contract will allow the shipbuilding company to review the design and devise a construction plan for the Arctic offshore patrol ships.

Those are the first vessels expected to be built under the overall $35-billion national shipbuilding procurement project.

In October, Ottawa announced that the Irving shipyard would receive the lion's share of the project.

Under its $25-billion deal, Irving will build 21 combat vessels.

The Seaspan Marine Corp. shipyard in Vancouver will construct seven vessels under an $8-billion contract for non-combat ships.

Another $2 billion for smaller vessels is yet to be allocated to another shipyard.

Halifax (HRM) Residential Market Statistic Update For Week of June 28th to July 5th 2012

New Listings:  460 (488, 511, 507, 544)
Sold:  161 (186, 206, 195, 183)
Sale to List Ratio: 35% (38%, 40%, 39%, 34%)
Expired/Cancelled/Withdrawn:  224 (81, 114, 87, 162)
Active Single Family Home: 2938 (2997, 2968, 2982, 2962)
Average Single Family Home List Price:  $298,840 ($292,136, $290,506, $291,325, $271,865)
Average Single Family Home Selling Price:  $287,605  ($284,278, $284,057, $285,079, $265,392)
Average Days on  Market Single Family Home: 84 (69, 92, 79, 78)
Active Condos:  272 (265, 267, 259, 261)
Average Condo Listing Price:  $291,935  ($243,605, $281,089, $276,180, $256,640)
Average Condo Selling Price: $279,786 ($233,500, $265,200, $267,952, $226,373)
Average Days on Market Condos:  50 (91, 101, 37, 80)
*Halifax/Dartmouth Absorption Rate (weeks):  25.6  (25.5, 25, 25.5, 25.3)

And we're back! Inventory took a dive this week thanks to a huge number of expired listings (183 to be exact). Some of those expired listings would have been renewed by property owners holding out for a sale and others would have just let their listing expire to try again later. Judging by the fall in inventory, I would say the latter would be the majority. Single family home prices made a rebound this week but the spread from list to sale price widened over the 10k mark. As usual, condos had a strong showing this week with good sales numbers, increased value and less time spent on the market. Sales overall are still quite measly and it doesn't appear that is going to change anytime soon. I'm still betting on a late market show as it coincides with my "secret time of the year" to sell. Don't forget to check out the monthly stats report for June (below) to see just how abysmal the sales where! Even with the sales at an all time low, our real estate market is still healthy and consistent. Whats your thoughts?
 
Have a question about the Halifax Real Estate market? Thinking this might be the time to purchase or list your property? Contact me to advise you on your best plan of action for your real estate transaction and get the most advanced real estate system working for you. Feel free to leave a public comment or question below. Follow me on Twitter to keep up to the minute with all things Halifax real estate @HalifaxRealEst


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Average sale price of property in the HRM took a nose dive this month. Settling in at just over $262k, the sales value barely beat the reported stat this time last year. Regardless, the value did hold its front running position from all years prior but it was very marginal (just over $1,000). Now thats close!

Well, this is the first month since december of last year that the residential inventory didn't come in under the last 7 years stats. Again, the difference is very marginal (41 listings) and it was 5 years ago that beat it out.

Kind of surprised here. If you have been here frequently you would have read my weekly reports on lacklustre sales performance. Yet again, the sales performance this month hit the wall and slid below the last 6 years sales reports. Slow sales could be a direct relation to the lack of inventory available on the current market.


So although we seem to be enjoying a fairly stable real estate market this year (characteristic of the usual slow growth pattern affiliated with the Halifax (HRM) real estate market) there doesn't seem to be a huge impact on the current market with the ship building contract announcement. There has been a notable difference in the market but not in all sectors and not in the volume that speculators have predicted...yet. Still lots of time before the ship building contract is fulfilled and with many other factors developing, there is no doubt that the Halifax real estate market will maintain and increase its strength. Hope everyone had a great Canada Day long weekend! Make sure to come back Thursday for the weekly report.

Have a question about the Halifax Real Estate market? Thinking this might be the time to purchase or list your property? Contact me for important information, advise you on your best plan of action for your real estate transaction and get the most advanced real estate system working for you. Feel free to leave a public comment or question below. Follow me on Twitter to keep up to the minute with all things Halifax real estate @HalifaxRealEst

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An article I thought was pretty interesting and coincides with what my predictions have been thus far;


Local investor to sell market's merits at national conference

"Local real estate investor Richard Killeen-Payne isn’t holding his cards too close to his chest.

Instead, the co-owner of Invicta Property Investments will be flying the flag for Halifax and promoting the municipality as a hot real estate market that investors coast-to-coast should consider when he addresses the national membership of the Real Estate Investment Network in Toronto next week.

What the local real estate market has going for it is a long track record of modest growth, even before the shipbuilding contract came to town, Killeen-Payne said Wednesday.

“The number of multi-unit apartment blocks that have started over the last two years show that it’s not just about the shipbuilding contract,” Killeen-Payne said. “That contract has been a wonderful shot of adrenaline for the market and it promises more jobs ... and with more jobs comes (gross domestic product) growth.”

A recent Canada Mortgage Housing Corp. report shows there are currently 2,282 apartment buildings under construction in Halifax, one of the highest levels recorded in 50 years. About 1,000 units are expected to come on the market before the end of the year.

The construction of single-family homes was up 42.5 per cent in February over the same month last year and the corporation expects the construction of single-family homes will be robust in 2012 with about 1,100 starts.

The average sale price of single-family homes climbed to $396,622 in January, up from $383,329 in the same month last year, the report says.

Meanwhile, a report released by Colliers International last week put commercial sales volumes at $11.8 million, more than three times the amount transacted in 2010. The most sought-after assets were multi-family buildings, representing one-third of all sales volumes, followed by industrial and then retail properties.

The steady, upward-trending track record the Halifax real estate market boasts and the pending boon the $25-billion shipbuilding contract promises, is music to real estate investors’ ears, Killeen-Payne said.

“It follows the fundamentals of real estate investing, ..... which are population growth and job growth and, eventually, GDP growth,” he said. “Even in the days of the recession, property values in Halifax didn’t decrease.”

The shipbuilding contract has pushed prices higher in Halifax as savvy buyers make speculative purchases, Killeen-Payne said. But even with the increased market activity, there will unlikely be a so-called real estate bubble to burst.

“We will definitely see a cooling off in price but I think it will be more of a gentle exhale, to use the analogy,” Killeen-Payne said. “There is speculation taking place and the market is certainly busier at this time of year than it typically is but Halifax is still a sure place to invest. ... Unless you buy the wrong property, in the wrong area, there will be a return on your investment.”"

COLLEEN COSGROVE BUSINESS REPORTER

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