New home prices drop in November

Newly constructed homes in Halifax got slightly cheaper compared to the rest of the country, according to the latest report from Statistics Canada.

Prices were down 0.4 per cent in November 2015 compared to October 2015. Year to year however, prices in Halifax are up 0.3 per cent, less than the national average of 1.6 per cent.

Those in the market for a home likely won’t be affected much by the current price drop. According to John Linders, a real estate agent in Halifax with Re/Max Nova,“there are far more resale homes that sell here than new construction.”

More than 2,000 new homes were under construction in 2015, with that number likely staying stable in 2016 and 2017, according to the Canadian Mortgage and Housing Corporation. But, the CMHC numbers also include apartment complexes that likely will not enter the sale market.

Linders said that the average price of residential property in Halifax has been increasing, but a persistent buyers market has translated to a lower list-to-sale ratio.

According to the Canadian Real Estate Association, the average price of a home in Halifax is around $300,000 — an increase of $30,000 over last year, but still a quarter less than the national average. But that may not be bad news. In December, the CREA predicted that the Atlantic region as a whole will likely see a steady growth in sales, partially driven by the low cost market.