Halifax Home Prices Still Falling
HALIFAX – Real estate prices in Halifax dropped again in August, marking the fourth month in a row the price of a home in the city fell.
According to new data released by the Nova Scotia Association of Realtors, the average Halifax home sold for $472,473 in August, compared to $506,639 in July. That’s a nearly seven percent drop in price over the course of 30 days.
In April, home prices in Halifax hit their peak, topping out at around $580,000. August’s average price means a typical home in the city has lost more than $100,000 of value in four months.
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There’s a very good chance the decline is far from over.
Real estate prices began to drop in Halifax shortly after the Bank of Canada began an aggressive series of interest rate hikes to curb inflation.
The bank’s overnight interest rate sets the benchmark for other Canadian banks so higher Bank of Canada rates mean more expensive mortgages for Canadians. On September 7, the bank once again raised its key interest rate, leading many experts to predict an even chillier effect on the country’s housing market.
However, one big question remains: how far will prices drop?
Although month-to-month statistics show values falling in Halifax, prices are still up compared to a year ago. The NSAR says home prices in the city were more than seven percent higher in August 2022 than they were in August of 2021.
Last month, James Dwyer of Engel & Völkers told Huddle he expects home prices in Halifax to keep dropping through the end of the year before they move into a “new normal” this spring.
Different economists give different estimates, but most predict home prices will fall by somewhere around 10 percent in Nova Scotia by the end of 2022.
It’s impossible to predict entirely accurately, but Dwyer argued the decline could be even more significant.