Happy New Year!! 2021 is in the rearview and all eyes are on the 2022 market year. Last year was another year lodged deep in a Sellers market, and although there were signs of fracturing, the end of the year really pushed the pedal to the metal!
Let's kick things off with what we already know about, somewhat.... crazy low inventory levels. 2015 hit record peak inventory, and since then it's been a steady decline. It was a slow decrease year to year, until 2019 where things really started dropping, which has put us in a precarious position heading into 2022. In comparison, 2015 had 4189 properties for sale at the end of the year, where 2021 (short 6 years later) reported a measly 560, and only half of which were single family homes. Even last year, which was another record breaker, ended the year with 1306 units overall, leaving more than twice the inventory for the following market year. 2021 hit its peak of active listings in July, which is typical, but the peak was more of a hill as the overall inventory remained steady for most part of the year. Buyers have been snapping up everything that comes to market basically, which isn't giving these numbers a chance to rise, and the continued trek towards critical lows could push values even further.
The sales report is a bit confusing, and somewhat contradictive of itself, until you look closer. Sales in April were incredible and record breaking, crushing the record by a large margin, and despite the inventory being lower than any other year in the last decade, sales hit an all time high. What followed, however, was anything but predictable with a significant drop the following month and a a continued fall to the lowest units sold in a single month for over a decade. At this point, availability of property has to be the biggest factor influencing the lack of sales, since you can't buy something that isn't available.
No doubt the surging sale prices have been newsworthy, and felt by every buyer and seller involved in the market in the last couple of years. With two years of the pandemic market behind us, we are now getting a clearer picture of what has been happening since the initial state of emergency was called. As you can see from the above graph, all the years prior to 2020 were slow gain, with small value increases overall year to year. Headed into 2020, Halifax was already set into a sellers market in many areas of the city, but nothing like the monster that would be created by the demand of buyers and reluctance of sellers to come. 2020 was a record value gain year, ending up just shy of selling on average just below the $400k mark, Although 2021 did not see an incredible value jump like 2020 did slowly over the year, it seemed to have hit its incredible value gain peak early and dance around it for the rest of the year. There was a declining trend in June, values spiked again in September and dropped off only slightly to cap the year off and settle around a $470k average sale price.
So the good news is that values did somewhat plateau, but the lack of inventory may have been a huge factor causing selling prices to kick back up again, and even though selection is at an all time low, buyers are still making the best of it and snapping up anything they can get their hands on. 2022 is a year in question, and as weary buyers hope for a break, sellers continue to enjoy the sizzling conditions. Going to be an interesting year no doubt, and the blog has you covered, so stay tuned and stay informed! Thanks for stopping by!
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Jeremiah Wallace, CD
Jeremiah has been involved with many aspects of the Real Estate industry for over fourteen years. This includes construction, residential renovations, interior design, and investing in various income generating property products..
Photo's by Jeremiah