Economic trends are the backbone of any real estate market—and in Halifax, Nova Scotia, their influence is impossible to ignore. Whether you're a buyer, seller, investor, or just watching from the sidelines, knowing how interest rates, population growth, job markets, and supply levels interact is key to understanding where the market is headed.
Let’s break it down by the numbers and the trends that matter most in 2025.
1. Population Growth Fuels Demand and Competition
Halifax’s population rose by 3.9% over the past year, thanks to steady interprovincial migration and international immigration. People are coming here for affordability, lifestyle, and opportunity—especially compared to major Canadian cities like Toronto or Vancouver.
This growth pushed median home prices up 4% to $510,000
Inventory remains tight, with just 2.2 months of supply
In-demand areas: Bedford, Clayton Park, and Dartmouth, where lifestyle and price meet
Bottom Line: Halifax remains a seller’s market because supply hasn’t kept pace with demand.
2. Interest Rates Are Still a Headwind, But Slightly Easing
While the Bank of Canada started easing interest rates in mid-2024, average mortgage rates hovered around 5%, leaving affordability strained—especially for first-time buyers.
Rate drops have been modest so far, but further reductions could unlock buyer activity
Buyers are adjusting expectations, looking at townhomes, condos, or moving outward to Sackville or Eastern Passage
Detached homes under $500,000? Still rare unicorns
Bottom Line: Buyers are price-sensitive. Rate drops may help in 2025, but affordability remains a challenge.
3. Job Market and Economic Growth Keep the Market Moving
Nova Scotia’s economy—and Halifax in particular—has shown surprising resilience. From hybrid work models to investments in infrastructure and cultural development, the city continues to draw young professionals and families.
Demand is up for homes with office space, larger lots, or proximity to commuter routes
Average home price in HRM climbed 4.8% to $573,000 in 2024
Employment stability helps support pricing, especially among buyers under 55
Bottom Line: The local economy is keeping real estate healthy—even if buyers are more cautious.
4. Inventory Is Still Too Low, Even with a Boost in Listings
By the end of 2024, Halifax had only 760 active listings, barely up from 755 the year before. Yes, new listings rose 7.6%, but supply still isn’t meeting demand.
Spring 2024 saw a surge in listings (700+)
But winter numbers dropped dramatically—as low as 150 listings across HRM
The average home spent 13–44 days on market, depending on price and location
Multiple offers were still common: homes sold $32,000–$70,000 over asking
Bottom Line: Until construction and downsizing catch up, expect continued seller advantage.
5. Government Incentives Offer Promise, But Progress is Slow
The Nova Scotia Affordable Housing Strategy, including removing HST on purpose-built rentals, aims to improve supply—but real-world progress has been slow due to:
Labour shortages
Rising material costs
And red tape around development approvals
Meanwhile, new builds often exceed $700,000, pricing out many buyers.
Bottom Line: The intention is there. But for most buyers, those benefits won’t be felt until late 2025 or beyond.
6. Affordability Is the Elephant in the Room
As of June 2025, the average home price in Nova Scotia hit $488,760, up 6.1% year-over-year. That’s pushing more buyers to look at:
Condos and townhomes (condo average now $423,291, up 1%)
Suburban and rural areas for value
Sustainable and energy-efficient homes (think solar panels, heat pumps, and smart tech)
Younger buyers, especially, are prioritizing long-term cost savings and lifestyle fit over sheer square footage.
Bottom Line: Value matters more than ever, and energy efficiency is becoming a key selling feature.
7. Rentals and the Commercial Market Add Extra Layers
Commercial real estate may be slowing, but residential demand remains strong—particularly for rentals. With vacancy rates below 1%, rents have spiked by 5–10%, making homeownership an increasingly attractive alternative.
Investors are keeping an eye on multi-unit buildings and condo rentals
Downtown areas benefit from hybrid work trends, boosting lifestyle demand
Benchmark apartment prices are up 2.9% to $480,200
Bottom Line: The rental squeeze is nudging more renters into the buying pool—or drawing in savvy investors.
2025 Forecast: Seller’s Market with a Side of Strategy
Expect the Halifax housing market to stay firmly in seller’s territory through 2025. With ongoing population growth, low inventory, and only modest improvements in affordability, prices are projected to rise another 3–5%, reaching an average of around $607,859.
Here’s what that means:
Sellers: Spring (March–April) remains the best window for peak activity and price potential
Buyers: Winter may offer more flexibility and negotiation power
Investors: Multi-units and energy-efficient homes are where the long-term value lies
Thinking About Buying or Selling in Halifax?
Whether you're relocating, downsizing, or investing, economic trends are a powerful guide—but you still need someone who understands the Halifax market inside and out. I’m Sandra Pike, a top-ranking Halifax REALTOR®, and I’ve helped over 865 families navigate market shifts with confidence.
Let’s talk about your real estate goals and how we can time it right—no guesswork, just smart strategy.
