Nova Scotia homeowners and potential buyers continue to adjust to a changing market – one that is very different from this time last year.
New figures from the Nova Scotia Realtors Association show that 972 units were sold in the province in September – down nearly 28% from the same month last year.
However, the average price rose 7.3% to $379,000.
If that sounds like a paradox, experts say it’s not.
“The need is still there, adding that home ownership remains a valid and valuable goal for most Nova Scotians, who actually have it,” said Matt Dauphine, president of the association. more likely to find properties they can afford right now.
“It puts buyers in the price bracket where they expect to be there and expect the homes to sell,” says Dauphine.
Others agree that the market has become more stable and predictable.
“We are now seeing properties listed for $600,000 being sold for around $600,000,” said Matt Honsberger, president of Royal LePage Atlantic.
No longer fueled by out-of-control bidding wars, the Bank of Canada’s rate hike march is now firing shots.
“So when we see rates rise, that’s when we start to see buyers say, ‘Well, I’m not sure how strongly I want to continue. Maybe I’ll wait and see the impact of that. what is it.’ And sellers do the same thing,” said Honsberger.
Other insiders noted that many homeowners are under a lot of pressure at the moment.
“I think it’s the dark times in real estate. I think it’s the dark times in the mortgage business, which we do every day,” said mortgage broker Clinton Wilkins.
Although it has kicked off in recent weeks, Wilkins admits business has slowed significantly in recent months and there are growing concerns for customers who may not be prepared for the payments. Payments increase when their fixed terms expire.
“We are seeing consumers renewing mortgage rates that are twice as high as they were in the previous term,” said Wilkins.
The Bank of Canada will announce its latest interest rate decision on Wednesday, and the broad consensus is that it will rise again.
