Halifax housing market to see seller’s market, prices expected to rise 8% in 2021
The Halifax housing market should continue to favour sellers in 2021, thanks to challenges in housing supply and rising prices. Low inventory has been a common trend across many Canadian housing markets in 2020, which has prompted price increases. Indeed, Halifax real estate saw average residential price rise to $370,271 in 2020 (Jan. 1-Oct. 31) up from $329,963 in 2019 (Jan. 1-Dec. 31). Low supply and high demand are expected to continue impacting market activity through 2021. Thus, the RE/MAX outlook for Halifax real estate is an increase of 8% in average price to approximately $399,892 across all property types.
While market activity showed a significant rebound in the latter months of 2020, activity is expected to remain steady with potential to plateau heading into the new year, as this is a common trend in the region.
Who’s driving the Halifax housing market?
Halifax is currently a seller’s market due to low inventory across all property types. The region experienced an influx of migratory homebuyers from larger Canadian cities in 2020, and they are expected to continue to drive the Halifax housing market forward in 2021, with single-detached homes being in highest demand.
Single-family homes will continue to be the most in-demand property type in 2021, while semi-detached housing and new construction inventory are also very popular among buyers.
Specifically, Halifax homebuyers have shown interest in properties that have space for home offices and less of a need to be in close proximity to work. This has become more of a priority as many continue to work from home.
When it comes to the hottest neighbourhoods in Halifax, the top three are North End Halifax, Downtown Dartmouth and Spryfield, based on the number of sales in 2020. These areas are expected to be in high demand in 2021, due to attractive housing stock, access to various amenities, restaurants and green space.
Canadian housing market in 2021
Canadians are on the move. RE/MAX isn’t calling this an “exodus,” but the re-location trend across the Canadian housing market is real, and it’s just one focus of the RE/MAX 2021 Housing Market Outlook Report. RE/MAX Canada anticipates healthy housing price growth at the national level, with move-up and move-over buyers continuing to drive activity in many regions across the Canadian housing market. An ongoing and widespread housing supply shortage is likely to continue, presenting challenges for homebuyers and putting upward pressure on prices.
Due to these factors, the 2021 RE/MAX 2021 outlook for average residential prices is an estimate of +4% to +6% nation-wide. Here’s the regional break-down:
Additional report findings include:
- 35% of RE/MAX brokers indicate that “move-over” buyers from other cities and provinces will continue to spark market activity in 2021
- 45% of RE/MAX brokers indicate that move-up buyers will likely be a primary driver of the housing market demand in 2021
- Half of Canadians (53%) are confident that Canada’s housing markets will remain steady in 2021
- 52% of Canadians believe real estate will remain one of the best investment options in 2021
“We’ve seen a lot of anecdotal evidence since the summer that households are considering significant lifestyle changes by relocating to less-dense cities and neighbourhoods,” says Christopher Alexander, Executive Vice President and Regional Director, RE/MAX of Ontario-Atlantic Canada. “This has sparked unprecedented sales this year in suburban and rural parts of Canada and we expect this trend to continue in 2021.”
Learn more about RE/MAX real estate franchise opportunities in Ontario-Atlantic Region and Western Canada.