The Halifax Real Estate Blog Annual Market Wrap Up by Jeremiah Wallace of ViewPoint Realty: 2023 Edition
Happy New Year!
Ready for the 2024 market? Let's have a look back at how the 2023 market performed, and how it may influence the market this year!
Inventory was the talk of the city by the end of 2021, as we witnessed record lows and a red hot sellers market that had no signs of slowing at that point. Critical lows left home buyers wondering what the market would look like if these trends carried on, but fortunately, they did not have to endure further obstacles. Inventory slowly stared its recovery in the Spring of 22, continuing all through 2023 and landing us with a product count higher than the end of the first year of the pandemic. As you can see from the above chart, even before the pandemic market, Halifax was already in a balanced market in most areas, and even a Sellers market in some areas of the city by the end of 2019. The spread between mid 2018 and 2023 is almost 3,000 units, which is a big chunk to shed in that short amount of time. I dare say that the amount of inventory that dropped during that 5 year span is the most drastic Halifax has even seen. 2023 ended up being an inventory recovery year, and the anticipation is that this will continue into 2024 barring any sort of event.
Residential selling prices had a slow correction year, and despite starting at values below 2022, the ebb and flow of the transactions ended the year with selling prices being the highest Halifax has ever seen at the end of a year. Of course, overall peak selling prices happened in the Spring of 2022, but after some varying correction, 2023 did provide a bit more stabilized pricing overall. As the product surplus continues to grow, prices should continue to correct, so these values will be something to watch out for in 2024 with the expectation of a downward trend.
Possibly the most impactful chart, sales slumped across HRM in 2023, reporting lower in almost every month since before 2018. Soaring interest rates and peak pricing cooled the market quickly, and while interest in buying was still there, many took a step back to watch the dust settle. This gave the inventory a chance to catch up and pad some of the numbers around the city, and listing/selling prices that had not been seen in a couple years (sub $450k) started to show up, inviting a group of buyers back to market that had been priced out. The projections are that this trend will continue as inventory increases and values reduce, but may see localized surges on news of interest rate reductions.
So it's good news for buyers heading into 2024! Inventory is on the rise, prices are on the way down, and there appears to be less competition our there for now. Lifting the foreign Buyer ban, and a few mortgage rate drops may change this however, but the long term forecast is a return the the steady Eddie market that Halifax is used to. Anything is possible however, so be sure to stay on top of things by tuning into the blog! Thanks for stopping by!
Looking to help?
With the devastation of the fires and floods, we are still far from a full recovery and many animals and people could use help! I want to provide links to various shelters and rescues that could use your support. Donations of pet supplies, food, money, basically anything can help!
Good Bones Dog Rescue
Nova Scotia SPCA
Bide Awhile Animal Shelter
Halifax Veterinary Hospital
If you have a suggestion to be added to the support list, do not hesitate to contact me!
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Have a question about the Halifax Real Estate market? Thinking this might be the time to purchase or list your property? I can provide you with a complimentary comparative market analysis or you can 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 contact me with questions or comments. Follow me on Twitter to keep up to the minute with all things Halifax real estate @HalifaxRealEst and friend me on Facebook and Google+ :) Please note that these opinions and comments are solely mine and mine alone. Don't forget to bookmark my page, and visit often!
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Newest Blog post HERE
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