Halifax (HRM) Residential Market Statistic Update For Week of May 17th to May 24th 2012
New Listings: 520 (563, 632, 468, 519)
Sold: 192 (199, 292, 172, 199)
Sale to List Ratio: 37% (35%, 32%, 37%, 38%)
Expired/Cancelled/Withdrawn: 104 (65, 69, 187, 64)
Active Single Family Home: 2964 (2950, 2897, 2823, 2850)
Average Single Family Home List Price: $291,706 ($296,277, $293,401, $294,469, $285,936)
Average Single Family Home Selling Price: $286,217 ($288,607, $289,016, $288,806, $280,799)
Average Days on Market Single Family Home: 76 (79, 60, 67, 81)
Active Condos: 256 (252, 240, 225, 225)
Average Condo Listing Price: $284,242 ($254,110, $255,601, $245,635, $226,141)
Average Condo Selling Price: $280,175 ($250,032, $250,116, $242,470, $222,575)
Average Days on Market Condos: 123 (84, 144, 48, 133)
*Halifax/Dartmouth Absorption Rate: 25.5 (weeks)
With the spring market coming to a close, there seems to be an unusual number of property coming off the market right before summer. The apparent "hottest time to sell" has come and gone without much of a fuss nor caused any exaggerated market frenzy. Granted, there has been records broken every month in one way or another, but the overall market behaviour is steady. The market is healthy, healthy as ever in fact. But it is not in what I believe to be a boom/bust type of scenario...yet. The absorption rate is keeping pace with inventory, whether its the demand causing sales or sellers jumping off the market to try again another day (52 cancelled listings alone this week). Or perhaps its just the calm before the storm and the flurry of activity that we have seen so far is local market driven by people making their move before its too late. Many theories, a lot of speculation...but thats all there is at this point.
*In addition to my usual stats, I am going to start tracking the Halifax "absorption rate" as requested by my loyal readers. I have included an "absorption rate" definition below.
"The Absorption Rate is the ability of the real estate market to absorb or sell all of the houses for sale in a given amount of time. For example, if 100 homes are sold every month and there are 1200 homes for sale, it will take 12 months to sell all of the homes currently for sale. If there are 2400 homes for sale, the absorption rate will be 24 months or 2 years for all of the homes to sell, this does not take into count the number of houses which will eventually come on the market in addition to those already for sale.
If you would like to sell in 12 months, you need to take the absorption rate into account. In the above scenario with 2400 homes for sale, we know that only 1/2 of them will sell in the next 12 months. If you need to sell within the next 12 months you need to price the property in the lower 50% of the price range for similar properties in order for it to sell in the next 12 months. To sell in the next 6 months it would have to be priced in the lower 25% of the competition."
Thats generally speaking of course. Currently, the Halifax absorption rate is 25 1/2 weeks and is a key statistic to keep an eye on to ensure your listing will sell in the time you desire and for the price you are hoping for. One of the many key factors that I use to price a home competitively. If you would like to know what the absorption rate is for your neighbourhood you can contact me anytime.
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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Jeremiah Wallace, CD
Jeremiah has been involved with many aspects of the Real Estate industry for over twelve years. This includes construction, residential renovations, interior design, and investing in various income generating property products..
Photo's by Jeremiah