Matt Honsberger speaks to the Royal LePage Canada House Price Forecast and the impacts on Atlantic Canada

Royal LePage Canada reports that we are at a critical tipping point in the market this year, with interest rates projected to decrease in the ladder end of 2024 and pressures on inventory in every region across Canada, we are poised to see another booming real estate market in Atlantic Canada for the remainder of the year.

Matt Honsberger spoke with Todd Battis at CTV News Atlantic to give his insight into how these numbers reflect on the markets here in Atlantic Canada.

Royal LePage Canada’s update for the Halifax Region

The aggregate price of a home in Halifax increased 7.0 per cent year over year to $508,100 in the first quarter of 2024. On a quarterly basis, the aggregate price of a home in the region increased 3.5 per cent.

Broken out by housing type, the median price of a single-family detached home increased 8.0 per cent year over year to $575,000 in the first quarter of 2024, while the median price of a condominium increased modestly by 0.8 per cent to $404,900 during the same period.

“Sales activity and home prices have been picking up in Halifax heading into the first weeks of the second quarter, a typical pattern for this time of year. With the spring market gaining momentum, sidelined buyers are cautiously re-entering the marketplace, especially those first-time buyers who have reached their 30s and are looking to put down roots,” said Matt Honsberger, broker and owner, Royal LePage Atlantic. “Agents are already preparing for the spring rush. Though we have seen more sellers putting their properties on the market in recent weeks, it has not been enough to keep up with steadily climbing demand.”

Honsberger added that Halifax continues to grapple with a housing supply shortage, which is keeping upward pressure on prices. However, a high number of housing starts and active construction projects will bring much-needed inventory to the region in the coming years.

“Economic indicators point to a slowing rate of inflation and a possible cut to interest rates later this year, factors that are strengthening the confidence of buyer hopefuls,” said Honsberger. “Should we see that first highly-anticipated rate cut in the coming months, demand for homes will accelerate as the cost of borrowing becomes cheaper, but not to a degree that the door to the market will fly off of its hinges.”

Royal LePage is forecasting that the aggregate price of a home in Halifax will increase 5.0 per cent in the fourth quarter of 2024, compared to the same quarter last year. The previous forecast has been revised upward to reflect a stronger-than-expected first quarter.

Royal LePage House Price Survey Chart: rlp.ca/house-prices-Q1-2024
Royal LePage Forecast Chart: rlp.ca/market-forecast-Q1-2024