The average price of a single family home in the Halifax-Dartmouth region increased by 1.2% in November, which is a 13.2% increase from a year ago. The average price now sits at $380,060. The number of listings available continues to plummet as we head into the Holiday Season and winter months. Active listings in November fell to 635 from 817 in October. This is down 53.1% from a year ago and 68% from 2018. To compound the problem, sales are not slowing down. A 13% increase in the number of sales means we now only have 2.2 months of inventory (anything below 3 months is considered a Seller’s market). This time last year, we sat at 5.5 months of inventory. One of our agents was part of a multiple offer scenario in Bedford this past week - there were 29 offers on the same property.
The condo market in Halifax-Dartmouth region has ratcheted up a gear in the past two months. Year over year, prices have increased by 11.4%. However, 4.3% of that increase occurred in the past two months. This could be due to the highly competitive nature of the Single Family market. While rents go up and Single Family homes are the subject of bidding wars, the condo market is a lot more approachable for the time being. You may still have to make a quick decision when the right condo pops up, but you are unlikely to be competing against multiple other parties (unless it is a very special unit).
The number of listings is down by 35.9% while sales are up 3% from 2019. With sales increasing since October, months of supply for the condo market has now dropped to 2.3. While Condo sales are not likely to follow the exact same path as the Single Family market, it is clear the condo market is becoming more competitive.
What is months of supply, anyway?
Months of supply shows us the relationship between inventory and sales. It measures a moment in time. If nothing else were listed and the current rate of sales continued – how long would it take for everything to sell? More sales and fewer homes for sale means lower months of supply.
For example: There are 100 homes for sale and on average, we are selling 20 homes a month – Months of inventory would be 5. (100 homes for sale/20 sales a month = 5 months).
If months of inventory falls below three months, it is a Seller’s market where Home Buyers often have to compete for listings. Three to six months of inventory would be considered a balanced market while anything above six months favours a Buyer.
It is highly unlikely we are going to see an influx of listings in the next couple of months as we head into winter. This is concerning because pent up demand still exists. This will drive prices higher in the near future. If we do see listing activity pick up into February and March, it will be a welcome change. However, this time of year usually sees an increase in buyer activity as well. It is likely we will be facing the same problem then as we are now.
You need help navigating this incredibly challenging market - Get in touch with our team of professionals below. Our advice is free and we can discuss your specific situation to ensure you make the most of your next move. We help:
- Home Buyers (Even if you are brand new and have no idea where to start)
- People looking to sell to upgrade their home
- People looking to sell to downsize
- Those looking for investment properties
Posted by Chris Perkins on