Home prices increase in Halifax by more than 3 per cent in second quarter of 2024: report

The aggregate home price in Halifax has increased by 3.7 per cent year-over-year to $513,700 in the second quarter of 2024.

This data was released Thursday in Royal LePage’s Quarter Two 2024 Home Price Update and Market Forecast.

The news comes a month after the long-awaited interest rate cut by the Bank of Canada.

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Broken down by housing type, the median sale price of a single-family detached home in Halifax increased just over four per cent year-over-year, currently sitting at $582,500 in the second quarter of 2024, according to the release.

As far as condominiums, Royal LePage says the median price for them increased by two per cent to $412,600 during the same period.

“On the whole, there doesn’t seem to be a sense of urgency among Halifax homebuyers at the moment, as many wait to see how falling interest rates will influence the market. The June interest rate cut by the Bank of Canada did not bring the wave of activity some may have been anticipating,” said Matt Honsberger, broker and owner, with Royal LePage Atlantic.

“The exception to this is the entry-level segment of the market, which remains highly active thanks to first-time homebuyers. High and fast-rising rental costs are pushing many tenants into the resale market sooner than they planned, given that the monthly carrying costs of home ownership are now less than or equal to leasing in some cases.”

Honsberger added that new resale inventory continues to rise from record lows, but remains below historical norms. New developments in areas surrounding downtown Halifax continue to pop up, with a wide variety of housing types being built, adding some much-needed supply to the region.

“If interest rates continue on a downward trajectory and housing affordability improves as a result, we could see a surge in buying and selling activity come the fall,” said Honsberger.

“A boost in transactions will result in upward pressure on home prices, but nothing like the intensity we experienced in recent years when borrowing rates were at all-time lows.”

Over the past few years, real estate throughout the Maritimes has been scorching hot – a trend that hasn’t cooled down.

“Part of that is because we are still a relatively affordable market, but we are seeing a split between the more expensive homes,” said Chandler Haliburton, realtor in Nova Scotia.

“They’re sitting on the market for longer and refusing lower bids. But the entry-price point, which let’s say is $450-thousand and under, that $450K and under price point is still very popular.”

Haliburton said the Bank of Canada rate will need to drop significantly more than 0.25 per cent to see a change in market.

“That would of course increase the consumer buying power and they could buy more homes more easily, or pay more money for those homes.”

Even with the drop in interest rates, there has not been much of a difference in the amount of people buying homes.

“Twenty-five basis points doesn’t really increase the affordability of a home that you’re looking at. It’s going to make it $20-a-month more affordable rather than, you know, a full 200 basis point,” said Honsberger.

Royal LePage is forecasting the aggregate price of a home in Halifax will increase 6.5 per cent in the fourth quarter of 2024, compared to the same quarter last year. The previous forecast has been revised upward to reflect current market conditions.

For more Nova Scotia news visit our dedicated provincial page.