A local realtor believes the Halifax housing market will likely remain hot this summer, despite signs it’s starting to cool in Canada.
Recent stats from the Canadian Real Estate Association show home sales dropped 12.6 percent in April 2022 compared to the previous month, which is the lowest since the summer of 2020.
Royal LePage Atlantic Realtor Jacqui Rostek Holder tells our newsroom the decline was shaped largely by the Vancouver and Toronto markets.
She explains in the Halifax-Dartmouth area sales actually edged up slightly.
“Let’s say in February, or March, a property might have been listed at $299,000,” Rostek Holder says. “And then it would sell for $420,000. And we would go ‘oh my goodness, that’s crazy.’ And now that same type of property might be listed at $399,000. Meanwhile, if properties are listed low, they still tend to have that higher result, bringing them closer to market value. So in some cases, some sale prices still look shocking.”
Rostek Holder posts those shocking sales on TikTok and many of her videos have more than 100,000 views.
@realtor_jacqui Wow! My parents live on this street and this price is wild. This same home didn’t sell last year when listed at the exact same price #RealEstate #HalifaxNovaScotia #RealEstateNS #NovaScotia
She says Canadians are really interested in learning about the housing market right now and seeing what is available for them after tough pandemic years.
“As of last month, our average per house was in the $600,000 range. And that doesn’t mean that there’s nothing selling below that. So it’s kind of breaking down what are things selling for? What type of properties are we seeing, selling, what goes way overvalue? I think the engagement that I’ve gotten shows people really have an appetite for the information.”
Hammonds Plains home sells for 66 percent above the asking price
Rostek Holder says something you can definitely expect to stick around his summer are bidding wars.
One of the more shocking sales she’s seen recently was a property in Hammonds Plains. It sold for more than 66 percent above the asking price.
It was listed at $599,900 and was won with a $1,314,000 bid.
She believes this process is helping to keep housing costs high as some people deliberately put in a bid well over the listed price in order to get the keys to their new place.
The goal is to put forth an offer you don’t think anyone else will pay.
“Sometimes people are very knowingly trying to outbid everyone else, even knowing they might be overpaying, but they’re going ‘you know what I’d rather do this than pay rent, I’d rather just get into a property, then keep doing this, and losing out,’ Rostek Holder says. “Or maybe they’re someone that’s from another province and is moving here, and they just decide, I don’t care if I overpay a bit. I just want to get into the home.”
She adds a rental shortage in Halifax is only making it more challenging to buy a home.
Rostek Holder says many families are facing tough times because regardless of whether you’re renting or buying in Nova Scotia a large portion of your income is being spent on your living arrangements.
@realtor_jacqui What did it sell for? North End Halifax 1921 detached 1.5 storey #WhatDidItSellForHFX #RealEstateNS #RealEstate #NovaScotia #SellersMarket #HalifaxNS ♬ original sound – Jacqui Rostek Holder
She explains in this seller’s market, budgets set below $400,000 can be challenging.
Rostek Holder says it’s a difficult time for Maritimers who are learning the dream home they could afford a few years ago might now be just out of reach.
“I think it’s toughest on people who have been in the Maritimes, either born and raised or have lived here for several years, because it’s hard to kind of wrap your head around. It’s hard for me and I work in real estate. Four years ago, what was the value of a certain property, has now in some cases doubled or more.” Rostek Holder says “So it’s tough to get people to look at how it is now and understand that it is what it is, regardless of our personal feelings, or regardless of how difficult it is.”
She adds the Halifax housing market is likely to remain tough even if prices drop as the city has been experiencing a supply issue since the pandemic, which could continue over the next few years.
Rostek Holder recommends if you are looking to buy a home this summer you set a realistic budget and remember you might not get that same dream house you envisioned a few years ago.
