Halifax-Dartmouth Real Estate Market Update: Dancing to a New Tune
Hello readers! And welcome back to our blog where we are diving into the market stats for September 2023! In this month's market update, we're diving deep into the Halifax-Dartmouth real estate market. Over the past four years, this market has felt like a never-ending party, but intriguing numbers suggest a change in the rhythm. Is the real estate party over in Halifax? Keep reading to find out!
Active Listings
Let's start by examining active listings – the guest list for this real estate party. In 2020, there were over one thousand listings, with 1003 active homes for sale. The following year, 2021, saw active listings drop to an all-time September low with only 525 active homes for sale. By September 2022, inventory was picking up, with 845 active listings. In 2023, we reached 945 active listings for sale, marking a 13% increase in inventory within just one year. This increase was essential to bring more stability to the market and meet the high demand from buyers.
Number of Sales
Now, let's talk about the number of unit sales, which is like the dance floor action at this real estate shindig. In 2020, there were 772 unit sales, but the dance slowed down in 2021 when unit sales hit 543. This decrease was in line with the reduced inventory. In September 2022, unit sales dipped to 348 while inventory was on the rise. In 2023, we have 350 buyers still dancing to the "home buying" song, but they're doing so with even higher inventory. Could this be a clue to what's coming at the end?
Sales Year-to-Date
The sales year-to-date is like counting the partygoers throughout the year. In 2020, we had 5257 people join the party, and it was a blast! Moving forward a year to 2021, during a Great Canadian real estate migration dance, unit sales reached 5779 homes sold in the first 9 months. In 2022, the signs began showing a different tune, with year-to-date unit sales dropping by a staggering 37% to 4211 unit sales. In 2023, we're witnessing another 18% year-over-year drop, with a total of 3547 unit sales.
Days on Market
The days on market tell us whether we're dancing to a seller's, a buyer's, or a balanced market tune. In 2020, homes were swinging for sale for an average of 38 days on the market. In 2021, the pace quickened, with homes averaging just 19 days on the market in September. In 2022, buyers slowed down the tempo, increasing the average to 25 days for a sale. In 2023, it's swinging back up at an average of 30 days for homes to sell. This suggests that buyers are still coming to the party but not as quickly. Currently, Halifax remains in a seller's market. Stick around to see which market segment is driving the force.
Months Supply
The month's supply is like the party drinks – it indicates how long the drinks will last. In 2020, with no new listings coming in, buyers had their thirst quenched with a 1.8 months' supply, just shy of two months. In 2021, it was a wild party, with just less than a month's supply of homes for buyers to do the purchase dance. In 2022, we went back to just shy of two months' supply. In 2023, we have 2.5 months' supply of homes, keeping us in the seller's market.
Average Price
The "average price" to get into a home in Halifax is showing signs of stabilizing. In September 2020, an average home price in Halifax was $399,277. The dance was wide open for entry-level buyers' budgets. However, in 2021, a significant migration from Ontario drove the biggest jump in the average sale price to $481,372, an $82,095 increase. In 2022, the average price went up to $518,643, but signs are showing that the era of double-digit equity growth may have peaked. In 2023, we see an average price of $536,002, with a more reasonable growth rate, considering the market's previous dance to the tune of soaring prices.
Percentage of List Price
The "percentage of list price" indicates the difference between the list and sell price. In 2020, homes were garnering more than 2% over the asking price, a sign that the real estate party was beginning. In 2021, it jumped to 7.5% over the list price, reflecting high demand and a willingness to pay above the asking price. In 2022, we returned to the norm of 99.7%, and in 2023, it's again more than 2% over the asking price. This situation is somewhat perplexing, as the music seems to have slowed, but certain buyers are still willing to pay above asking. What could this be a sign of?
Appreciation
The appreciation rate is like the vibe of the real estate dance party. Between 2020 and 2021, the party was legendary, with home appreciation over 23%. In 2022, it slowed to a mere sway, with 7.7% appreciation. Now, in 2023, in the September "fall" market, we have a 3.3% appreciation rate. It's clear that the market is moving to a more stable rhythm, and this rate takes us back to pre-COVID times, reminiscent of the days when Nova Scotia home equity danced as far back as Elvis.
Stay Informed About Halifax Real Estate
The Halifax real estate market is indeed dancing to a different tune, but it doesn't mean the dance is over. Demand remains strong, especially in the entry-level price points, which is driving the list-to-sell ratio over 100%. However, keep in mind that the real estate market is cyclical, and it will always have its ups and downs.
If you're thinking of joining the Halifax real estate market, reach out to us today! We have our finger on the pulse of the market and can guide you through this evolving dance.
That wraps up our Halifax-Dartmouth Monthly Market Update for September 2023. For weekly and monthly updates on the Halifax real estate market, tune into @HalifaxRealEstate on YouTube. To learn more about what’s happening in your neighborhood or explore your options, click the calendar link below to schedule a personalized consultation. Our team is here to provide valuable insights and help guide you through the ever-evolving Halifax real estate landscape!
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