Halifax Real Estate Market “Unbelievably Hot”
In the last quarter of 2012, the average price for a detached bungalow rose 7.3% to $285,833, according to a Royal LePage survey recently released. “The housing market is unbelievably hot,” said the Royal LePage real estate broker, Matt Honsberger. He said some of the properties in Halifax are receiving multiple offers, pushing up prices and in some cases setting off bidding wars.While the shipbuilding contract announced last fall played a big part in the rise of prices, the major factor shaping the Halifax housing market is the inventory.
The inventory levels are down about 10% year-on-year which has elevated the average home price and greatly reduced the number of days properties stay on the market.
Canada Mortgage and Housing Corp. recently released data on housing starts showing that the shortage of inventory is likely to stick around in most areas of the real estate market.
The federal housing agency recorded a drop in new residential construction in Halifax last month with only 157 starts compared to 202 last year.
Although some expect a slowdown in the housing market due to slight changes in the mortgage regulations, Honsberger says these changes will have minimal effect in Halifax. Strong employment levels and low interest rates play a big role in the Halifax housing market and will be a significant driving force for the rest of the year.
Source: The Chronicle Herald