We need more inventory. As the summer swelters on, condos are selling over asking and with multiple offers. When a condo is priced within that 300K-500K competitive range, and is in a desirable neighbourhood, it is selling quick as ever. While the summer months are typically slower in Halifax, our chronic lack of inventory has allowed our market to continue to thrive.
Condo sales are down by 9% when compared to this time last year. This has been the trend across all property types in the Halifax Real Estate Market. Interest rates and cost of living is much higher than this time last year, causing some buyers to either wait on the sidelines, or even have lower pre-approvals then they did last year, which can make it harder to purchase.
Prices continue to climb, similarly to single-family homes. When inventory is as low as it has been for years and years, prices have no where to go but up. With competition comes increasing prices, and this month is no different. As you can see on our image above, prices have been increasing steadily since 2016, and more steeply in the past 4 years. Even though the days of lockdowns and masks are long behind us, the effects of the pandemic remain in the real estate market.
Condos are selling in on average one month. This is a little more than double of what condos sold for in July of last year. We believe that the similar factors that are influencing sales being down are impacting the days on market as well: buyers slowing their searches due to the interest rates rising.
Although inventory is replenishing, it is no where near the rate that we need. We now have 9 more condos for sale than we did at the beginning of June. The new condo development Navy Lane did help bring some more inventory to market, however, those condos are quickly selling. We will need many more new developments to meet the demand we are currently facing.
With only 1.38 months of inventory, we remain in a strong seller’s market. With 6 months of inventory being a balanced market between sellers and buyers, and 6+ months being a buyer’s market, we still have a long way to go before the competitiveness eases. If you are thinking of selling your condo, now is a better time than ever. With the right exposure and pricing, you shouldn’t have any issues. Buyers, you can still secure a property in this kind of market, buyers do it everyday. Work with experienced realtors who understand the market (like us!) to succeed!
Author: Jordan Gunn
Real Estate Assistant
HalifaxCondos.co
Keller Williams Select Realty