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Atlantic Canada Real Estate: Nova Scotia Trends – RE/MAX News

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Atlantic Canada real estate has seen significant gains since the start of the coronavirus pandemic, leading to what are now some of Canada’s hottest real estate markets. In fact, recent activity has been seen by experts as unprecedentedly strong. The province of Nova Scotia is part of this growth, as more people scoop up properties in this oceanside region.

Despite market activity temporarily halting as a result of self-isolation protocols, the slowdown was short lived in this province. This could be due to the fact that cases of the COVID-19 virus were low overall in the Atlantic provinces, especially compared to other cities in the country including Toronto and Vancouver, which experienced higher cases and prolonged effects.

While many predicted that the virus would have devastating effects on the economy and real estate market, trends started point to recovery in Nova Scotia starting in May. Fortunately, experts believe this activity will continue into the fall and winter seasons.

Atlantic Canada real estate trends

Nova Scotia Home Sales Surge

As we look to Nova Scotia’s capital city, Halifax, the signs of a strong (booming) market are glaringly obvious. With the spring home-buying season put on hold, in June real estate activity quickly ramped up again, ultimately building toward September sales that rose almost 46 per cent year-over-year.

Another indicator of a strong market: many properties have been sold well over asking price, sometimes tens of thousands of dollars over. Year-over-year the house prices in Nova Scotia are up 21.5 per cent, further showcasing the desire to purchase homes in this Atlantic province.

Despite soaring prices, Halifax continues to be an affordable market compared to the rest of the country. As we see this momentum build, many are confident that a significant downturn won’t occur in this market in the short-term.

Home-buying Lifestyle Factors

The pandemic has caused locals and those from other provinces to seek larger floor plans and more green space, both of which are plentiful in Nova Scotia. A recent survey by RE/MAX showed that 48 per cent of Canadians want to live closer to green spaces and 33 per cent have realized they would like more square footage in their home.

The shift to remote working arrangements have afforded homeowners the freedom to choose where they’d like to live, no longer constrained by their office commute. For some, this meant packing up and moving from more densely populated provinces such as Ontario to the east coast. There is also a growing trend of people originally from the maritime provinces choosing to move back home to be close to family and friends.

Social distancing has caused some people to feel less comfortable being in close proximity to others in large metropolitan hubs. Typically, condo lifestyles require use of shared spaces like elevators, lobbies and fitness facilities, potentially increasing the risk of exposure to the virus.

These pandemic-related lifestyle shifts are driving real estate activity and trends country-wide, and until the coronavirus is completely contained, experts predict that these preferences are not going to change any time soon.

Low Inventory

Another factor affecting the real estate market in Nova Scotia is the limited inventory. In Halifax there aren’t enough homes to satisfy the high demand of buyers. People are seeking various property types, and new builds are failing to meet these demands. This continues to be a seller’s market as a result.

According to Senior Economist Shaun Cathcart with the Canadian Real Estate Association, prior years of inventory in this province were between 12 to 13 months, yet since 2016, that inventory has been dropping and is now between three and four months.

The low inventory is causing multiple offer scenarios as well as bidding wars, a result of the competition present for buyers to secure the home they desire.

Low Interest Rates

In response to the COVID-19 economic freeze, the Bank of Canada lowered the benchmark interest rate to 0.25 per cent. This is the lowest the rate has ever been and may encourage more homebuyers to set their sights on their dream home on the east coast. Those who previously faced challenges borrowing at high rates may want to take advantage during this time, before the Bank of Canada decides to increase rates once again. These historically low rates are proving to be particularly helpful to first-time homebuyers who now have access to more funds, increasing their market options.

The Atlantic Canada real estate market is red-hot as more people set their sights on larger floor plans and access to green space. The Nova Scotia housing market offers both, with the added benefit of price affordability.  Any coronavirus-related impacts on Atlantic Canada real estate market have been minimal, and not only is the provincial real estate market recovering, but the growth is outperforming previous years. These strong housing trends are projected to continue into 2021.

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Greater Toronto home sales jump in October after Bank of Canada rate cuts: board

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TORONTO – The Toronto Regional Real Estate Board says home sales in October surged as buyers continued moving off the sidelines amid lower interest rates.

The board said 6,658 homes changed hands last month in the Greater Toronto Area, up 44.4 per cent compared with 4,611 in the same month last year. Sales were up 14 per cent from September on a seasonally adjusted basis.

The average selling price was up 1.1 per cent compared with a year earlier at $1,135,215. The composite benchmark price, meant to represent the typical home, was down 3.3 per cent year-over-year.

“While we are still early in the Bank of Canada’s rate cutting cycle, it definitely does appear that an increasing number of buyers moved off the sidelines and back into the marketplace in October,” said TRREB president Jennifer Pearce in a news release.

“The positive affordability picture brought about by lower borrowing costs and relatively flat home prices prompted this improvement in market activity.”

The Bank of Canada has slashed its key interest rate four times since June, including a half-percentage point cut on Oct. 23. The rate now stands at 3.75 per cent, down from the high of five per cent that deterred many would-be buyers from the housing market.

New listings last month totalled 15,328, up 4.3 per cent from a year earlier.

In the City of Toronto, there were 2,509 sales last month, a 37.6 per cent jump from October 2023. Throughout the rest of the GTA, home sales rose 48.9 per cent to 4,149.

The sales uptick is encouraging, said Cameron Forbes, general manager and broker for Re/Max Realtron Realty Inc., who added the figures for October were stronger than he anticipated.

“I thought they’d be up for sure, but not necessarily that much,” said Forbes.

“Obviously, the 50 basis points was certainly a great move in the right direction. I just thought it would take more to get things going.”

He said it shows confidence in the market is returning faster than expected, especially among existing homeowners looking for a new property.

“The average consumer who’s employed and may have been able to get some increases in their wages over the last little bit to make up some ground with inflation, I think they’re confident, so they’re looking in the market.

“The conditions are nice because you’ve got a little more time, you’ve got more choice, you’ve got fewer other buyers to compete against.”

All property types saw more sales in October compared with a year ago throughout the GTA.

Townhouses led the surge with 56.8 per cent more sales, followed by detached homes at 46.6 per cent and semi-detached homes at 44 per cent. There were 33.4 per cent more condos that changed hands year-over-year.

“Market conditions did tighten in October, but there is still a lot of inventory and therefore choice for homebuyers,” said TRREB chief market analyst Jason Mercer.

“This choice will keep home price growth moderate over the next few months. However, as inventory is absorbed and home construction continues to lag population growth, selling price growth will accelerate, likely as we move through the spring of 2025.”

This report by The Canadian Press was first published Nov. 6, 2024.

The Canadian Press. All rights reserved.

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Homelessness: Tiny home village to open next week in Halifax suburb

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HALIFAX – A village of tiny homes is set to open next month in a Halifax suburb, the latest project by the provincial government to address homelessness.

Located in Lower Sackville, N.S., the tiny home community will house up to 34 people when the first 26 units open Nov. 4.

Another 35 people are scheduled to move in when construction on another 29 units should be complete in December, under a partnership between the province, the Halifax Regional Municipality, United Way Halifax, The Shaw Group and Dexter Construction.

The province invested $9.4 million to build the village and will contribute $935,000 annually for operating costs.

Residents have been chosen from a list of people experiencing homelessness maintained by the Affordable Housing Association of Nova Scotia.

They will pay rent that is tied to their income for a unit that is fully furnished with a private bathroom, shower and a kitchen equipped with a cooktop, small fridge and microwave.

The Atlantic Community Shelters Society will also provide support to residents, ranging from counselling and mental health supports to employment and educational services.

This report by The Canadian Press was first published Oct. 24, 2024.

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Here are some facts about British Columbia’s housing market

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Housing affordability is a key issue in the provincial election campaign in British Columbia, particularly in major centres.

Here are some statistics about housing in B.C. from the Canada Mortgage and Housing Corporation’s 2024 Rental Market Report, issued in January, and the B.C. Real Estate Association’s August 2024 report.

Average residential home price in B.C.: $938,500

Average price in greater Vancouver (2024 year to date): $1,304,438

Average price in greater Victoria (2024 year to date): $979,103

Average price in the Okanagan (2024 year to date): $748,015

Average two-bedroom purpose-built rental in Vancouver: $2,181

Average two-bedroom purpose-built rental in Victoria: $1,839

Average two-bedroom purpose-built rental in Canada: $1,359

Rental vacancy rate in Vancouver: 0.9 per cent

How much more do new renters in Vancouver pay compared with renters who have occupied their home for at least a year: 27 per cent

This report by The Canadian Press was first published Oct. 17, 2024.

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