Halifax condo prices rose slightly during the second quarter of 2024, according to a new Royal LePage report.

The national brokerage firm said the median condo price rose 2% to $412,600. Meanwhile, the median price of a single-family detached home increased 4.1% to $582,500.

The Halifax region’s overall aggregate price climbed 3.7% to $513,700.

As is the case in other markets, buyers have not rushed into the market after the Bank of Canada reduced its key overnight interest rate to 4.75% from 5% in early June.

“On the whole, there doesn’t seem to be a sense of urgency among Halifax homebuyers at the moment, as many wait to see how falling interest rates will influence the market,” ssaid Matt Honsberger, owner of Royal LePage Atlantic, who also serves as a broker.

“The June interest rate cut by the Bank of Canada did not bring the wave of activity some may have been anticipating. The exception to this is the entry-level segment of the market, which remains highly active thanks to first-time homebuyers. High and fast-rising rental costs are pushing many tenants into the resale market sooner than they planned, given that the monthly carrying costs of home ownership are now less than, or equal to, leasing in some cases.”

New resale inventory continues to rise from record lows, but remains below historical norms, Honsberger added. Meanwhile, new developments are still emerging in areas surrounding downtown Halifax with a wide variety of housing types being built. The trend will bring some much needed supply to the region, according to Royal LePage.

“If interest rates continue on a downward trajectory and housing affordability improves as a result, we could see a surge in buying and selling activity come the fall,:” said Honsberger. :”Consumers who have been waiting out high interest rates will be motivated to move off the sidelines and into the market once again if the overnight lending rate comes down substantially.

“This includes move-up buyers, who have remained somewhat inactive – activity from this segment will bring more supply to the market. A boost in transactions will result in upward pressure on home prices, but nothing like the intensity we experienced in recent years when borrowing rates were at all-time lows.”

Royal LePage is forecasting that the aggregate price of a Halifax home will increase 6.5% year-over-year in the fourth quarter of 2024. The company has year. The previous forecast has revised its previous upward to reflect current market conditions.

Pictured: Downtown Halifax

Image: Halifax Partnerships