Major drivers of the phenomenon include healthy immigration and low inventory
Amid sustained demand, inbound migration, and scarce inventory, Halifax saw its home prices steadily appreciate this year, according to the Royal LePage.
The market had a 1.6% year-over-year increase in its aggregate home price during the third quarter of 2019, ending up at $328,690.
“Halifax has seen the best year in real estate out of the past couple decades,” Royal LePage Atlantic broker of record Marc Doucet stated. “Low inventory was the only factor that slowed sales as buyers wait on more listings to become available.”
“Our province is appealing to Canadians from across the country, partly because the economy is not as dependent upon oil or manufacturing,” he added.
By asset class, two-storey homes had a 2.5% annual increase in their average price to reach $349,159, while bungalows ticked up by 0.3% to $274,321.
Meanwhile, condo units had a noticeable 3.2% year-over-year decline in their median price, ending up at $320,962.
These trends are expected to continue during the fourth quarter. Royal LePage predicted that for this period, the aggregate home price in Halifax will go up further by 3.7% year-over-year to $330,333. This would also be 0.5% higher increase compared to Q3 2019.
“A lot of new Canadians are seeing the affordability of Halifax and the welcoming spirit of Maritimers as a draw when looking for a new place to start up,” Doucet said. “A number of newcomers are starting their own businesses locally.”
