‘Roller-coaster’ housing market in Halifax may be coming to an end

Royal LePage Atlantic Predicts Stable Real Estate Market for Halifax Homebuyers in 2025

According to Matt Honsberger, the president of Royal LePage Atlantic, Halifax homebuyers can expect a more stable market in 2025. After experiencing a roller-coaster ride in the past five years, with fluctuating trading volumes and price changes, Honsberger predicts a return to a more normal market with around 6,000 trades annually.

The Royal LePage survey forecasts a moderate increase in home prices in the Halifax area, with prices expected to rise between one and five percent over the next year. The aggregate price of a home in Halifax is projected to increase by four percent to $532,064. The median price for a single-family detached home is expected to increase by five percent to $605,745, while condo prices are forecasted to rise by one percent to $423,291.

Nationally, home prices are expected to increase between 3.5 percent for condos and seven percent for single-family detached homes. In the past five years, home price increases in Halifax have ranged from 19.4 percent for bungalows in 2021 to -2.7 percent for single-family detached homes last year.

Honsberger attributes the high rents in Halifax as a factor pushing people towards homeownership. With lower interest rates and stagnant rent prices, many individuals are finding it more financially beneficial to buy a home rather than continue renting. Homes priced under $600,000 are particularly popular among first-time buyers.

Despite recent changes to mortgage rules by the federal government, allowing first-time buyers to extend their amortization period from 25 to 30 years, Honsberger believes the impact on the Atlantic region will be minimal. He is more concerned about potential political actions in the United States, such as President-elect Donald Trump’s threats to impose tariffs on Canadian goods, which could have a greater impact on the housing market.

In conclusion, Halifax homebuyers can look forward to a more stable real estate market in 2025, with moderate price increases and a focus on affordable entry-level homes. While external factors such as political decisions may influence the market, overall trends suggest a positive outlook for the coming year.