The Halifax Real Estate Blog Weekly Market Rant, Notable News and Statistics Update by Jeremiah Wallace
Halifax (HRM) Residential Market Statistic Update For Week of May 15th - May 22nd 2014
(Previous weeks numbers in brackets)
*Last year this week
New Listings: 592 (553, 649, 542, 466) *545
Sold: 133 (143, 147, 157, 127) *160
Sale To List Ratio: 22% (26%, 23%, 29%, 27%) *29%
Listings that went conditional/pending: 159 (158, 170, 160, 139)
Expired/Cancelled/Withdrawn: 79 (93, 124, 245, 59) *79
Total Active Halifax/Dartmouth Inventory: 5,483 (5,303, 5,187, 5,002, 5,040) *5,419
Active Single Family Home: 3,703 (3,624, 3,551, 3,424, 3,399) *3,647
Average Single Family Home List Price: $299,131 ($323,895, $311,592, $279,885, $289,440) *303k
Average Single Family Home Selling Price: $389,648 ($313,500, $300,759, $271,365, $280,883) *296k
Average Days On Market Single Family Home: 96 (103, 100, 89, 114) *97
Active Condos: 553 (535, 516, 487, 502) *423
Average Condo Listing Price: $254,175 ($266,094, $244,431, $257,451, $263,477) *236k
Average Condo Selling Price: $243,612 ($259,006, $237,388, $251,662, $255,762) *233k
Average Days On Market Condos: 90 (104, 118, 117, 126) *63
Halifax/Dartmouth Absorption Rate (weeks): 134 (132, 128, 125, 116) *35
One can't help but look at that absorption rate and shudder. One hundred and one additional weeks to sell off the current inventory at this sales rate, compared to last year. Listings keep pouring onto the market in hopes of selling, but the fact is that we have in between 1/4 and 1/3 the sales each week in comparison to inventory additions. Inventory is up in all areas this week, and are reporting higher than our record breaking last year. Values remain high however, but is balanced by the two products that seem to have traction in this market, first time buyers ($200k-290k), and second home/executive homes (400k+). It would appear that there is a lot of products that are being looked over at the 300k range, and here's a possibility why. We know that entry level homes are doing better than the rest, and this is a natural market progression from renting to home ownership. In this market, coupled with the new shackles of lending, leaves the first time homebuyer trained to staying within budget, and focused on value. Unfortunately, because of new lending constraints, and the instability of out market, many are opting to stay put in rentals and "wait the storm out" so to speak. Where it causes the problem is what we call the "cascade effect". Gun-shy first timers don't invest into the market, homeowners ready to make the upgrade their next home two are stuck waiting, and everyone takes their foot off the next rung of the property ladder.
The tax man commeth! Seeing what this really is, and I'm sure you can draw your own conclusions, this article outlines the necessity to "axe the tax cap" on property taxes. Arguments from both camps could be made here, and ultimately, when you blurt things like "Lifting the property assessment cap just allows politicians to have an undefended take of taxpayers wallets", you can only assume that this, much like the "ditch tax", could be a "reach deeper into pockets of the taxpayer" campaign.
Seems as though CMHC is getting wise to what my readers already know, housing starts and sales are slowing in Atlantic Canada. Much of this article has roots in the hub of the maritimes, Halifax, but no areas have been unaffected by the nasty downward trend. The article projects a measly 1% increase per year for re-sale homes, but I'm not sure if they are taking into account that prices need to come down before they go back up...
I was passed this article from a great client of mine this week, and I thought I would share it given it's overall acknowledgement of the national impact of things to come, and being sited as one of the cities that is being affected. Take a peruse of this article to see what some are estimating is our future.
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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