As we close out October, it’s clear that Halifax’s real estate market is in an interesting phase, marked by notable shifts in home sales, pricing trends, and buyer behavior. September’s low sales numbers set a cautionary tone, and October followed with similar market dynamics. Below, we’ll explore the data in detail, highlighting key shifts, pricing trends, and what this might mean for Halifax home sellers and buyers alike.

Halifax Home Sales: October Shows Slight Recovery After September’s Decline

The real estate market in Halifax took a noticeable dip in September, with only 386 single-family homes sold, the lowest number since March, which saw 296 transactions. October saw a small recovery, with 386 homes sold, slightly up from September yet lower than the 394 units sold in August. This consistent decrease may signal a cooling trend in the market, especially as we enter the colder months, traditionally a slower period for real estate.

The fall in sales volume is raising eyebrows, particularly as Halifax’s housing market has previously demonstrated robust activity even during slower times. Interest rates and the stress testing likely play a role in this shift, making mortgages less accessible and reducing purchasing power for many potential buyers.

Price Drops: Sellers Adjust Pricing to Meet Market Demand

One of the most significant trends emerging this fall is the sharp increase in price reductions among sellers looking to secure deals. Since August, the average price decrease for single-family homes has escalated from $41,914 to $52,623 in October. This adjustment represents the highest drop recorded in 2024. Of the 386 homes sold, 224 were sold below asking price, with an average reduction of $52,623. These numbers reveal that sellers are adjusting their expectations to align with buyers’ tighter budgets and more cautious spending.

With inflation impacting daily expenses and borrowing costs, buyers are approaching the market with a clear preference for affordability, and sellers are responding by making concessions. For those considering listing their homes in Halifax, this trend signals the importance of competitive pricing and possibly adopting a flexible approach to negotiations.

Over-Ask Prices Decline: A Shift from Spring’s Highs

Another key change in Halifax’s real estate market is the decline in the over-asking price trend. In May, properties were selling for an average of $34,845 over the asking price, showcasing a hot market with multiple offers and high buyer competition. However, by October, this average had dropped to just $27,269, signaling a cooling off in the bidding wars that characterized the spring and early summer months.

This decline indicates that while some homes still fetch over-asking prices, the amounts are more modest. For sellers, this shift emphasizes the importance of realistic pricing that reflects current market dynamics. On the buyer side, there may be a bit more breathing room when it comes to negotiating a final sale price.

Performance by Price Range: Robust Activity in Sub-$499k Market

Despite the overall cooling, certain segments of Halifax’s housing market are still showing strong performance, particularly in the sub-$499,000 range. With 1,202 units sold in this price bracket, it remains the most active section of the market. Homes under $499,000 have maintained high demand due to their accessibility for first-time homebuyers and those looking to enter the market without overextending financially.

However, what may surprise some is the performance of the $500,000 to $699,000 range. This segment saw 1,555 sales year-to-date, showcasing robust interest. Homes in this price range often offer additional space, better locations, and upgraded amenities compared to more affordable options, catering to move-up buyers or those looking for more value.

Luxury Market: High-End Sales Show Mixed Signals

The luxury market in Halifax has experienced varied performance, particularly in properties valued over $1 million. Although overall sales in the luxury segment have slowed compared to lower-priced homes, there has been an increase in million-dollar property transactions in October compared to last year. This October saw 20 sales of properties over $1 million, a rise from just 13 during the same period in 2023.

For high-end sellers, this trend underscores the importance of distinguishing their properties through premium staging, targeted marketing, and perhaps a willingness to be patient in a market that’s moving more deliberately.

Interest Rates: A Decisive Factor in Halifax’s Real Estate Trends

Interest rates continue to be a decisive factor influencing Halifax’s real estate market. Buyers face higher monthly payments, which affects affordability and the type of property they can realistically pursue. These financial pressures are impacting buyer confidence, pushing them to negotiate more aggressively or focus on homes in more affordable price ranges.

While some buyers have the resources to navigate higher rates, many are opting to hold off or lower their budgets, directly impacting market activity. Sellers considering listing their homes should keep an eye on interest rate trends, as any further increases may amplify the need for price adjustments and flexible terms.

What to Expect: Will Halifax’s Market Bounce Back in Spring 2025?

The Halifax real estate market traditionally sees a surge in activity as winter turns to spring, with warmer weather bringing out both buyers and sellers in higher numbers. Many industry professionals anticipate that spring 2025 will bring renewed activity, although it’s uncertain whether it will match the rapid price appreciation and demand seen in previous years.

Political factors, such as the U.S. election results, could also impact Canadian financial markets and consumer confidence, potentially influencing Halifax’s housing dynamics. It’s a situation worth monitoring as we head into 2025, with many variables at play.

Conclusion: A Time of Adjustment for Halifax’s Real Estate Market

October’s data suggests that Halifax’s real estate market is in a phase of adjustment, with sellers making significant price reductions to attract buyers facing the pressures of inflation and rising interest rates. The substantial decrease in over-asking prices further emphasizes that today’s market is one where affordability is key, and buyer enthusiasm is tempered by practical financial concerns.

For sellers, these trends highlight the need for flexibility and competitive pricing to navigate this market effectively. Buyers, on the other hand, may find more opportunities for negotiation and choice, particularly as winter traditionally brings a seasonal slowdown.

Whether you’re buying, selling, or simply watching the market, Halifax’s real estate dynamics offer valuable insights for anyone involved in the housing industry. The coming months will be crucial for setting the tone for 2025, and all eyes will be on how these trends evolve as we move into a new year.