Nova Scotia’s real estate market is booming despite COVID-19

0
83


Many industries are suffering from the COVID-19 pandemic, but the real estate sector in Nova Scotia is not one of them.Although there was an initial drop in the first two months of the pandemic, the sector was quick to rebound this summer, with some homes only spending a few days on the market or selling for tens of thousands. dollars more than demand. price.

Kelvin Ndoro, senior analyst at Canada Mortgage and Housing Corporation, said Nova Scotia home sales picked up in June and July.

He attributes this to “a result of pent-up demand from April and May, where we saw our sales drop nearly 40 percent from the previous year,” likely due to COVID-19 lockdowns.

House prices have also seen a “huge increase” due to high demand and low supply, Ndoro said, with prices in June up 17% from last year and July 11. %.

Kelvin Ndoro, senior analyst at the Canada Mortgage and Housing Corporation, says house prices soared in June and July. (CBC)

Ndoro expects things to stay that way, at least for now.

“In the short term, we could still see an increase because cumulative sales for the year are down 10 percent from the previous year,” he said.

“So if, as I said, the recent increase is due to pent-up demand, there is still demand in the market. But… there is considerable risk in the market, so in the long run, we might see prices start to fall. ”

Some of those risks include overvaluation, speculative demand and over-construction, he said.

Donna Harding, a real estate agent at Engel & Völkers in Halifax, says the real estate market was already strong before entering COVID-19, so they were able to survive a short crisis in the spring.

Since the market rebounded, homes have flown off the proverbial shelves.

“If you look at the really strong Halifax and Dartmouth markets, they’re about to ask [price]. A lot of them are asking too much, sometimes a lot more asking, ”Harding said.

“Properties that are listed and that have a good price, that show well, they are only on the market for a few days. ”

This is happening all over the province, she said, although some areas are busier than others.

Donna Harding is a real estate agent at Engel & Völkers. (Paul Palmeter / CBC)

Harding also said some homes are sold without buyers even setting foot on the property, with people from out of the province visiting the homes via FaceTime or through virtual tours.

She expects the market to not slow down for at least a few more years.

“Discourage” for buyers

Denise MacDonell, a realtor at Red Door Realty in Halifax, says she has seen “a lot of frustration from buyers” recently due to low inventory and high demand.

“So when a house is listed, especially if it is in certain areas – even though we do see bid competition in all areas – you often find yourself competing with four or five other people for the same house. , and sometimes 15 or 20, ”MacDonell told CBC Main Street.

“So it’s been frustrating for the buyers and it’s tough on them psychologically, because, you know, after a few months it’s very disheartening. “

Denise MacDonell of Red Door Realty says many buyers are frustrated with the current real estate market. (Red Door Realty)

MacDonell described the problem as a “funnel that has been plugged.” She said she had a number of clients who bought an “entry-level home” a few years ago and are now looking to relocate, but they can’t find anywhere to settle down. And because they might not be able to buy a new home, they don’t put their current home on the market.

“People feel like they have nowhere to go, so they just stay put,” she said.

Another reason for the housing crisis is Nova Scotia’s growing population, according to Rosie Porter, a real estate agent with Royal LePage in Halifax.

Halifax real estate agents Rosie Porter and Denise MacDonell spoke with guest host Preston Mulligan about the housing boom in Nova Scotia. Some homes only spend a few days on the market while others sell for tens of thousands of dollars more than asking price. 9:54

She said Nova Scotia is an attractive place for people from more expensive cities in provinces like British Columbia and Ontario.

“I think it’s very appealing to be here, and they find they can get a house with a yard and a driveway and not too far from downtown for a lot less than the markets they’re from.” , Porter said.

MORE TOP STORIES

LEAVE A REPLY

Please enter your comment!
Please enter your name here