Is the supply of detached homes, under $200,000. on the Halifax Peninsula really changing?
For anyone considering a move to Halifax and wanting the conveniences of short easy walking, biking or a quick bus ride to downtown Halifax, the first place they usually look is ‘The Peninsula’. Divided into 4 areas; south, west, central and north, most areas offer the urban walk-able living lifestyle with close proximity to shopping, cafe’s, restaurants, theaters, Churches, green spaces, parks and community gathering places. And, of course, surrounded by the ocean with the Halifax Harbor on one side and the Northwest Arm on the other. Next comes the question of affordability…
Generally speaking, since 2012, less than 1% of detached homes sold on MLS® on the peninsula were under $200,000. and an average of 3% of detached homes sold on MLS® on the peninsula were over $1 million dollars.
On the entry level end, since 2012, excluding condo’s, the actual percentage and number of detached homes MLS® sold under $200,000 hasn’t really changed (except for 2016-2017) but what these numbers don’t show is the size of the homes sold. Each year the listings under $200000. tend to be smaller and typically are bungalows.;
2012-2013 .6% of total Halifax Peninsula Sales (4 homes)
2013-2014 .7% (4 homes)
2014-2015 .7% (4 homes)
2015-2016 .8% (5 homes)
2016-2017 1.6% (11 homes)
2017 (Jan-Sept) .6% (3 homes)
On the high end, since 2012, the MLS® sales of properties over $1 million dollar has generally been increasing.
2012-2013 2.4% of total Halifax Peninsula Sales
2017 (Jan-Sept) 3.6%
So what does this mean? My professional opinion is to buy anything detached under $200000. (excluding main thoroughfares) on the peninsula to maximize your real estate investment – especially if you are a first time home buyer! Compromise on space, forgo costly renovations (except paint and utilities) and hold until the increase in the market pays for your utility upgrades and doubles your down-payment to buy your next home. It may happen faster than you think! Logic and historical real estate patterns says that any real estate that offers time saving easy lifestyle living will become more valuable as our demographics shift and our needs and demands re-prioritize. Consider how in 2000 approximately 40% of all MLS® sales of detached properties on the Peninsula were under $200,000. compared to less than 4% so far this year. According to NSAR and CREA our HRM (Halifax Regional Municipality) overall prices have increased 4.2% in the last year. It also lists our average price at $297,700. but that is based on MLS® sales of properties covering all of HRM which is a very large area. (approximately 1 hour by car from one end to the other).
Ready to buy? Call me anytime. ‘Let’s Talk Real Estate!’
~ Michele Vyge-Fraser (902) 830-6397
Red Door Realty Agent/Associate Broker with over 20 years experience