Halifax Housing Market outlook for 2010 (Part II)

by Scott Grace on January 15, 2010

New Home Construction

Construction of new homes in the HRM will likely rebound by over 16 per cent in 2010. This activity follows a decline of 16 per cent in ’08 and the expected decrease in 2009 of over 15 per cent. 

Existing Home Sales

Existing home sales remained weak in 2009 but are expected to rebound significantly 2010. MLS sales were expected to decline by approximately 11 per cent in 2009 before climbing by over six per cent in 2010. Average home prices will continue to rise reaching approximately $237,500 in 2009 and will increase to approx. $243,500 in 2010!!!

Potential home buyers have been exercising caution thus far due to the economic climate last year and have delayed decisions on buying. We are starting to see increased activity by buyers as we come out of the recession. As expected, we are seeing consumers begin to take advantage of the current buyers’ market conditions and as a result sales should start to increase as we get further into 2010.

Existing home sales will remain well below the record levels set in 2007 when sales reached nearly 7,000 in the HRM. Sales were expected to exceed 6,000 in 2009 or even in 2010. The weaker levels of demand by buyers will result in slower positive price growth than has been seen in the last decade. From 1999 to 2008 the average price of an existing home increased by an average of 7% per year. In the forecast period, expect relatively weaker levels of demand to result in price growth of approximately 3.3 per cent in 2009 and 2.5 per cent in 2010. Average price in 2010 as mentioned before is expected to be about $243,500.

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Halifax Housing Market outlook for 2010 (Part I)

by Scott Grace on January 6, 2010

Strong employment to compliment the housing market

Provincially, the labour force & employment numbers are expected to increase moderately in 2010, while in Halifax, growth is expected to be more prominent. Halifax, like most years, will continue to see steady growth in the economy and this will translate into improving conditions in the local housing market.
 

The local economy in Halifax continues to benefit from positive migration patterns from outside the province, country and even from rural areas of Nova Scotia. Check out this article in The Halifax Herald. With more people moving to Halifax than moving away, the labour force has been growing significantly. Almost every month in 2009 saw a greater number of people looking for employment in the Halifax Regional Municipality and by summer, there were more people looking for work than ever before. Fortunately, unlike most other regions in Canada, most of these job seekers found employment which resulted in a record level of employment in Halifax. Employment was up by 3 to 4 percent per cent in 2009 compared to 2008! Employment come down off of the highs experienced in 2009 during certain months in the forecast period(2010), however overall employment is expected to continue to show positive growth in 2010. Very good news for the housing market as a whole!

 

Continued in-migration and near historic low interest rates along with the near record employment numbers will contribute to increased housing demand throughout the Halifax Regional Municipality. In the short term, some lingering effects of the weakened economy will keep demand subdued a little. In the longer term expect to see demand and activity begin to increase again in 2010. I will cover this in PART II of this outlook.  

Interest Rates

The Bank of Canada cut the Target for the Overnight Rate in the early months of 2009 in order to bolster the economy and make credit easier for consumers to get so they could make purchases of big ticket items such as housing, cars & appliances. The rate was 1.50 per cent at the start of 2009 and has since fallen to 0.25 per cent. The effect on the economy has been positive and we are now on our way to positive growth in the economy. The Bank has committed to keeping this rate at 0.25% at least until July of 2010 unless inflationary pressures warrant an increase. NOW IS THE TIME TO BUY!!! Click here and fill out the form to begin the process.
 
PART II will be posted tomorrow…

 

  
 

 

 

 

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NEW SUBDIVISION – COLVILLE HEIGHTS in Beaver Bank

by Scott Grace on November 9, 2009

 

Colville Heights is up and running!

-20 lots to choose from.
-Many styles and floorplans to choose from.
-Build your dream home today!

Here is just one of the listings available:

44 Colville Court

Featuring a 26 x 32 Saltbox with the Master Bedroom with Ensuite upstairs as well as Main Bath. Main Floor has Open Concept with Formal Dining Room, Large Living Room and an Oak Eat-In Kitchen with Island. Walk-out Basement all Nestled on a Fully Landscaped Lot. Rebates to Builder. All Measurements Subject to Change. Up to a $7000 Rebate subject to Availability. Click HERE for more info!  

Colville Heights

Colville Heights

Colville Court

Colville Court

 

Colville Ct

Colville Heights

 

MLS

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3rd Quarter Halifax Real Estate Market numbers are in!

by Scott Grace on November 2, 2009

Existing home sales were mostly unchanged last month compared to Sept. 2008, while average resale home prices declined for the first time this year.

Halifax home prices

In September 2009, MLS® sales reached their lowest year-to date level of decline so far this year at 12 per cent.

With 481 sales in September 2009 in the Halifax Area, the third quarter ended down only 1.4 per cent compared to the third quarter of 2008. This follows first and second quarter declines of 26 and 12 per cent respectively.

Through the first three quarters of the year, Dartmouth City (zones 10-17) is the only part of the HRM to see above average sales decreases of nearly 20 per cent.

Halifax County Southwest (zones 9 and 40), Sackville (zone 25) and Fall River-Beaver Bank (zones 26 and 30) saw the lowest declines in the number of sales of 4.1, 6.8 and 6.8 per cent respectively.

The average price of an existing home slipped in September for only the second monthly price decrease in over five years. The decline of just one per cent, however, resulted in the average price, thus far in 2009, settling at $237,000 – which still represents a year-to-date increase of 3.2 per cent!

In 2009, MLS® area Bedford Hammonds-Plains has seen both the highest average price and the highest price growth at $307,000 and 6.3 per cent respectively.

The lowest average price in the Halifax area can be found in Sackville at nearly $179,000. Sackville saw a slight decline of 1.5 per cent in the average price compared to last year.

Inventory levels are virtually the same as last year while the average number of days on market has increased by nearly ten days in 2009 compared to 2008. This, combined with fewer sales, slower price growth and low interest rates, means the market has been becoming more favorable to buyers this year.

Halifax Real Estate Market Trends

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NEW LISTING! 5678 NORTH ST in Halifax!

by Scott Grace on October 15, 2009

Perfect opportunity to renovate a home to your liking

This handyman special-Semi-Detached home is conveniently located on a large lot on North Street in Halifax. The back yard is a gem and is a must see! With some renovations this home could be the perfect place for someone or a family who want to be close to the bridge and downtown. Call today! ***Property being SOLD as-is where-is***

North Street Halifax Real Estate

mls

realtor

To discuss property values in the area of this home to explore your possible return on investment  please contact me @ 441-7714.

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