A Halifax-based realtor says the city is experiencing a housing market slowdown like many parts of Canada.
“We’re finally seeing things on the market stay on the market for 10 days or two weeks, which is totally unusual,” says Priority One Real Estate Owner Mark Stein.
“Six months ago or a year ago, a property would be on the market for four days, 12 offers, and then, poof — sold, gone.”
As a result, he says, home prices are softening.
“Consumers are used to them selling quickly, so if they don’t sell within a week or two the sellers are realizing, maybe we’ve overpriced this,” Stein says.
“So prices are actually being reduced, which hasn’t happened in three or four years.”
He says buyers are benefitting as they don’t have to bid tens of thousands of dollars above asking.
Stein doesn’t think the downward trend is due to the holiday cooldown, either, which typically begins in mid-December.
“The cost of food, the cost of rent, and the cost of fuel is high, and it’s affecting everyone’s budget,” he says. “Therefore, it affects buyers of homes, they have less to spend.”
On Wednesday, TD Bank released a report warning of a potential 10-per cent drop in Canadian home prices due to weaknesses in Ontario and British Columbia housing markets.
But that’s not expected in the Maritimes amid strong population growth.
“Markets in Nova Scotia and New Brunswick continue to be tight,” says TD economist Rishi Sondhi. “Conditions, by and large, favour sellers. This is in wide contrast to, for example, Ontario and B.C. where conditions are largely favouring buyers.”
The New Brunswick Real Estate Association has also found sales are holding steady.
“We’re up relative to where we were last year by about 11 percent for October,” says spokesperson Mike Power.
“The dollar volume is up slightly. The number of units for the month is good — we’re up in terms of new listings.”
However, trends vary across the province.
“Saint John has had a slower year, they’ve been off a little over 19 per cent whereas Moncton is up over 11 per cent.”
Although Stein can’t predict the future of the market, he says patience is going to be key for both buyers and sellers over the next few months.
Comments