Housing prices are falling in Canada after a period of all-time highs, but Halifax is bucking the trend. 

Prices continue to increase due to historically low supply, yet Halifax remains among the most affordable markets in Canada compared to other major cities. 

As we approach the second quarter of 2023, the average sold price in Halifax remains strong. Not only is the market holding the value it accrued during the pandemic, but prices continue to grow. This is despite the significant reduction in units sold towards the end of last year. 

Prices up year-over-year

In January 2022, the average sold price in the $0-499,000 range was $353,00O. One year later, the average selling price in the $0-499,000 market was $379,000, growing by seven per cent year-over-year. 

Homes in the $500-999,000 category also grew in value. In January 2022, the average price of a home in the $500-999,000 range was $651,000. By January 2023, this grew to $662,000, increasing by two per cent year-over-year. 

In the $1 million plus market, the average price reduced, but only by a slight margin of three per cent, from $1,359,000 in January 2022 to $1,315,000. This percentage decrease is a nominal drop in contrast to the 38 per cent drop in real estate sales across the entire market in the second half of 2022. 

Premium properties 

Premium properties in Halifax still make up a small ratio of the market compared to other Canadian cities. In the conventional market, Halifax saw prices decrease in late 2022 as buyers were confronted with interest rate hikes. 

This pattern aligned with the national trend. However, these price declines were nominal, especially compared to other major Canadian cities. In Ontario, for example, the market experienced a 20.2 per cent price decline across all price points in January 2023, according to CREA. 

Despite some price declines in Halifax, the market bucked the trend and year-over-year price growth continued through 2022 and into 2023. 

Population boom

From 2010 to 2019, market growth was slow-moving in Nova Scotia. Since then, Halifax has seen significant growth, and prices are catching up to the pace of other census metropolitan areas in Canada. 

The largest number of interprovincial migrants came to Halifax in 2021, representing 60.4 per cent of the total population growth. 

Of the newcomers to Halifax, 7,213 were 15 to 44 years of age, 902 were 45 years+, and 668 were 14 years or younger. The population boom put stress on Halifax’s real estate market, where demand far exceeded housing inventory, and multiple offer scenarios became commonplace. With these high-pressure conditions came significant price growth. 

The year ahead

All economic and statistical indicators point towards a robust and busy market in the year ahead. We are not seeing demand for Halifax wane and are projecting home sales will continue to climb steadily. 

Properties are receiving multiple offers again after a short break. At the same time, inventory remains low. Buyers are now acclimatized to the higher interest rates and continue to appreciate the affordability and lifestyle available in Halifax and Nova Scotia. 

We foresee markets across Nova Scotia will continue to lean favourably towards sellers with many years of growth remaining. Buyers are now entering the market with anticipation of this growth. Due to 30,000 expected migrants to Nova Scotia and limited inventory, we expect price growth in Halifax to continue in 2023, albeit at a more steady and reasonable pace compared to 2019 to 2022.

Inventory squeeze

As of January 2023, Halifax had 2.1 months of inventory in all price categories, trending lower than the national average of 4.3 months and a long-term average of five months, according to CREA. 

Affordability isn’t the only attraction. Halifax is a growing metropolitan city boasting a quintessential East Coast lifestyle. 

Nova Scotia has access to more oceanfront coastline than all of Great Britain, over 3000 lakes, and access to ocean and lakefront properties within proximity to downtown. 

Halifax’s downtown core combines the amenities of an urban city but boasts a slower-paced lifestyle. 

We are, after all, Canada’s ocean playground. We are Canada’s best-kept secret, a multicultural city with a best-in-class quality of life, yet small enough to deliver that “hometown feel.” Halifax speaks to the discerning buyer and investor who knows no other Canadian city delivers this unique combination of affordability and lifestyle.

Donna Harding

Donna is a visionary thinker who has a tremendous passion for people, real estate and giving back to the community. A highly successful real estate broker, she is a license partner of Engel & Völkers in Nova Scotia, along with her husband, Sebastien. In four short years, they have grown their company from 4 agents and 1 staff to 87 agents, 11 staff and 7 Shop locations servicing all of Nova Scotia from Yarmouth to Cape Breton Island.