Canada Mortgage and Housing Corporation
Fall 2008
Economic Overview for Halifax
Halifax has had sound economic fundamentals in the past few years but the economy is starting to show signs of change. Overall Employment in Halifax remains strong, rising 2 percent in 2007 and reached near record levels midway through 2008, however growth has moderated to 0.7 percent and is expected to remain near 1 percent in the next two years.
Metro Halifax is experiencing a high level of economic activity. Commercial and residential construction projects have boosted the demand for labour. Developments such as Dartmouth Crossing, Russell Lake West, the parking facility at the airport and hotel construction spurr on economic growth
Both residential construction and home sales are fore casted to ease, however sustained employment and strong unemployment will help bolster housing demand.
New Home Construction
2008 saw a decline in new home construction and is expected to remain the same in 2009. New Single detached homes however has remained strong. After the record year for sales in 2007 inventory was depleted and builders built new to catch up to demand. Single starts are up 12 percent in the first three quarters compared to 2007. This trend should soften in the last quarter and into 2009.
There are several reasons for the expected drop in single family detached starts. Inventory is up giving buyers more choice. Also increased economic uncertainty, weaker economic growth, slower employment and wage growth will result in weaker demand for new housing.
In the re-sale market, home sales have cooled compared to last years record. Average price for an existing home continues to rise while price growth will remain positive through next year. Sales are down 7 percent over last years record. Average price is forecast to be 235,000 in 2009. New home average price is forecast to be 355,000. Average days on market has decreased from 89 to 84 days on market.
The Halifax market is sound and there is no reason to panic. Sure sales are down, but only from last year which was a record, they are on par with 2002 and 2005 which were records at the time. Average price continues to increase. I hear a lot of people saying they are going to wait it out to see if prices come down. In our market this is not a good idea, prices are forecasting to rise steadily for the next couple of years.
If you are in the market for Halifax Real Estate, give me a call and I can discuss your options. I have a great team of mortgage brokers, inspectors, insurance agents, tradesman, contractors at my disposal to make your next home purchase as stress free as possible. I can be reached at andrewperkins@exitmetro.ca or by phone 488-0012.
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Andrew Perkins
Your Halifax Real Estate Expert
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I totally missed this post on my last read, it is great.