CMHC just released their housing outlook for the Halifax Central Metropolitan Area and is forecasting strong growth for the next two years. Residential housing starts are expected to increase in both the apartment and single family home markets. A high amount of inter-provincial and international migration coupled with an ageing population looking to downsize is driving the growth. Apartment construction will be focused mainly on the Peninsula and is expected to ramp up through 2020.
After recording a growth of nearly 30% the last two years, new construction starts of single family units will flatten out and grow at a more modest pace. A tightening re-sale market with fewer options to choose from may mean people look at new construction to fulfill their housing needs. This, coupled with the increased migration to the HRM work to ease the concerns of a flooded new-construction market.
Existing home sales and prices are trending higher than anticipated and a strong end to 2018 is certain. Fewer Nova Scotians have been leaving the province to seek opportunity as employment levels rose throughout the year. This population is supporting the housing market and the average number of days to sell a home has steadily declined over the period. As sales remain elevated, the number of new listings added to the market in 2018 has declined to a low not seen since the first half of 2003. This has caused sales-to-new listing ratio to increase by a substantial 64%. All factors combine to create a competitive housing environment. One where sellers are likely to see improved pricing through 2020.
Do you have any questions about the local housing market? Contact one of our real estate professionals.
Chris Perkins, Real Estate Consultant
HaliPad Real Estate Group
*The above statistics and information are based on the most recent Housing Market Insight publication provided by CMHC.