Maritime realtors expect market to heat up this fall

Canada’s housing market took a slight step back in July compared to June of this year, but an expert in Atlantic Canada real estate says there’s a good reason for that.

The Canadian Real Estate Association [CREA] released its monthly Housing Market Statistics Report on Thursday.

According to the CREA, home sales in July were up 4.8 per cent compared to the same month in 2023.

However, home sales in July were down 0.7 per cent from June on a seasonally adjusted basis.

Matt Honsberger, president of Royal LePage Atlantic, said the report is what he would describe as the typical seasonal fluctuation of the market.

“June tends to be the busiest month of the year in a very traditional market and we haven’t had one of those since 2019,” said Honsberger.

The Bank of Canada cut its key interest rate in June, the first move lower since the start of the pandemic in 2020 and the central bank cut its key rate again on July 24.

Honsberger believes the market in Halifax will be busy soon with the impact of another expected change in interest rates.

“We’ve had two rate drops at this point and for the most part it looks like each of the big five banks is now getting more aggressive with their predictions about where interest rates will go,” he said.

Honsberger said some are suggesting that by mid next year the interest rate will be down to 2.5 per cent as an overnight rate from the 4.5 per cent that it is today.

“I think that as we see rates truly effect properties becoming more affordable we’ll see more buyer interest again and a little bit of an uptick in the fall compared to what we would normally see,” said Honsberger.

In a news release, CREA senior economist Shaun Cathcart said markets are now anticipating rate cuts at every remaining Bank of Canada decision for the year.

"Combine that with a record amount of demand waiting in the wings, and the forecast for a rekindling of Canadian housing activity going into 2025 has just gone from a layup to a slam dunk," said Cathcart in the release.

In Moncton, realtor Jenny Celly also believes the fall will be steady with an increase in sales.

Realtor Jenny Celly stands out front of a home which is for sale. (CTV/Derek Haggett)“Interest rates are starting to decline a little bit and that’s pushing a bit more buyers out into the market,” said Celly.

Celly, from eXp Realty, said the Greater Moncton and surrounding area market is still strong.

“Yes, prices have changed a little bit, but if we compare July 2024 versus July of last year, we actually have increase in sales by a whole 33 per cent. Our prices have also increased by about four per cent,” said Celly.

She said Moncton is not a buyer’s market right now.

“We’re no longer seeing those multiple offers, especially when it comes to the single-detached homes,” said Celly. “We’re still at a seller’s market due to the low inventory.”

Honsberger said it’s not a buyer’s market in the Halifax Regional Municipality right now either.

“I remember Julys where we would have had 5,000 houses on the market and now there’s 1,000 on the market. Inventory levels are still low,” he said.

The price point for most first time buyers in the Halifax area is probably under $600,000, Honsberger said and there is a lot of competition for the listings that come up in the $499,000 range.

“That’s the part of the market that’s still quite brisk and has the least inventory,” said Honsberger.

Both Honsberger and Celly said there’s still buyers coming from Ontario and out west.

“But it’s definitely not the same pace that we saw during the pandemic,” said Honsberger. 

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