WHAT’S HAPPENING IN HALIFAX REAL ESTATE – MARCH 2023 MARKET UPDATE
Happy Spring Halifax! This is a first market update in the spring of 2023. We’re going to be talking about what happened in March of 2023. In this blog post, we will discuss the latest happenings in the Halifax real estate market. Currently, there are 682 active listings in Halifax and the surrounding areas. This number is lower than the 1,359 listings we had in March 2020 when the market was heating up. Bidding wars are still prevalent in the current market. To achieve a balanced market, we need over 1,200 listings, as we had in 2019 when we last experienced balance. Buyers in today’s market should expect longer days on the market and potential bidding wars due to low inventory.
The number of sales to date is 326 units, which is lower than the sales in 2022. The market was slow in January and February of this year but started picking up again in March. The total sales year to date is 780 units, showing a significant difference compared to previous years. In March, the average days on market were 27. If you are buying and selling simultaneously, this balance shouldn’t be a concern. However, if you are a buyer in a market with low inventory, be prepared for bidding wars.
The absorption rate, which indicates the length of time it would take to sell the current inventory if no new listings come on the market, is 1.7. This rate has increased over the past two years, as it was only 7 days in 2021. In 2020, due to the initial COVID-19 shutdown, we had around 2.5 months’ worth of inventory. The decrease in average sales price by about 7% compared to previous years is influenced by the mix of properties sold and their respective values.
The list to sales ratio, which measures the percentage of listed properties that are sold, has decreased to 1.07% from 126.6% in 2022. This decline is primarily attributed to the lack of available inventory. Restoring inventory levels to those of 2019 is crucial to improve the ratio.
Year over year, the appreciation rate has decreased by 7.7%. This means that if you purchased a home last year and plan to sell it now, you may not necessarily lose 7.7% of its value. It’s important to note that the average price represents a mix of sale prices during the reporting period. Factors such as the types and values of properties sold contribute to the observed decrease.
Continuing to witness significant year-over-year price increases is not desirable or sustainable for the market. With such growth, it would become increasingly challenging for people to afford homes in the coming years. Therefore, a more balanced and stable market is preferable.
In terms of specific areas, Bedford had the highest number of home sales with 34 units, while Herring Cove had the lowest with 7 units. The highest-priced sale also occurred in Bedford, amounting to $815,000, while the most affordable average sold price of $250,000 was found in Halifax County East, specifically in the Musquodoboit area.
The Sambro area boasted the lowest average days on market with only 1 day, while Fairview had the highest with 75 days. Keep in mind that these figures are averages, and prices can vary depending on individual properties. For weekly and monthly updates on the Halifax real estate market, tune into @HalifaxRealEstate on YouTube. I’ll be here every month to provide you with the latest information.
If you’d like to talk about real estate, click the Calendly link below. Set up a time to call. I’d love to hear your goals and to talk about real estate! Contact us today at 902-471-8497 or brendak@brendak.ca
Watch the full video update here — > March 2023 Market Update for Halifax-Dartmouth
Want to connect with us? Click here —> https://calendly.com/brendak1/coffee-with-brenda-k
Subscribe to our Newsletter for weekly updates! Click here —> Week in Review | Halifax Real Estate