Mervyn Edinger
7 Mellor Avenue
The Wright Place
Dartmouth, NS B3B 0E8 Phone: ( 902 ) 497-1217 Mobile: ( 902 ) 497-1217 Fax: ( 902 )435-0035 Email Mervyn

Our Marketplace

Over the past year many have asked “Is the bubble bursting?”, or “ how far are prices going to drop?”, and “when is the market going to turn around?”. We all know Real Estate is cyclical, but until we live through it ourselves, it’s just something that appears on a bar graph at a conference. For many of you, this is the first real downturn in a Real Estate market you’ve experienced. It has been almost 25 years since the last major downturn which was caused by incredibly high inflation and interest rates. Those conditions haven’t existed for years, in fact none of the causes for the last major market drop exist today. The failure of the American and western economies, and probably more accurately the loss of confidence in those economies left the world in shock. Even though Canada has been heralded as the poster country for economic stabilization, we were not immune to the emotional turmoil spreading throughout the world. Consumer confidence faltered here just like everywhere else, even though it wasn’t for the most part based on reality. We are living with the remnants of that feeling. Areas such as Vancouver, Toronto, and Alberta have been immune to market destabilization due to large numbers of immigrants and their commodity based economies. None of which applies to little old Halifax. Of course there is no crystal ball, we can never know when things will turn around, how fast the upswing will be when it happens, or the triggers that will spark the turn around. Consumer behavior is an ever changing and fickle environment.

Having said that, there are certain general truths that apply to all markets:

● Downturns and upswings in the marketplace are normal and should be anticipated

● The downturns will almost always be swifter than the upswings (this is a good thing) unpredictability is short lived.

● downturns are almost always caused by irrational fears in the marketplace and their causes are usually hard to identify.

● The triggers that create upswings are generally more rational, tangible, and easier to identify

● Buyers know when the market drops before sellers know it, or at least admit it.

● Markets will remain out of balance until buyers and sellers believe the same realities about the marketplace ( it’s either a buyer’s, a seller’s, or a balanced market)

● Lastly, all markets eventually have an upswing. People get tired of not buying.

Halifax Real Estate Market - statistical reports from January through to July 2014 - MLS - re/max nova

 

 

 

 

Overall HRM Market: ( MLS Areas 1-40) Our market has been out of balance for several years. Buyers and sellers haven’t agreed on the market conditions. The general consensus is that this is changing rapidly as Sellers are now figuring out it’s a buyers market. Over the last 7 months, list prices have been dropping and selling prices are down almost 2% over the same period last year. It’s impossible to calculate how far prices have dropped overall since we don’t keep track of price drops for listed homes that haven’t sold yet, but is certainly substantial. Sellers have been more cooperative and open to negotiations, they have been open to discussion on inspection issues, especially issues around water and septic quality since lenders and insurers are tightening their requirements. The converse to this is that Buyers are feeling more confident. They are more aggressive with offers, less accepting of inspection deficiencies, and more willing to terminate a sale, especially with the higher than normal inventory levels. Overall, the feeling is more positive now than it was at this time last year. The buyers are responding to falling prices. The challenge is that the increase in buyer activity hasn’t translated into cash in our agents pockets yet, BUT THAT WILL COME. Conveying the realities of the market to potential buyers and sellers is still the main focus of discussion. We receive HRM market reports from the NSAR monthly (usually received by the second week of the month immediately following the month in question).

Interesting Facts:

  • RE/MAX nova has sold almost 5 times more homes YTD than all 6 leading discount brokerages combined, even though they have more than half the number of listings we have.
  • Over the last 7 months, list prices have been dropping and selling prices are down almost 2% over the same period last year

Historical Property Values in the Halifax Regional Municipality by MLS area

 

 

 

 

 

 

 

 

 

 

 

Market value from an investment point of view over a 5 year period actually averaged very well with the exception of Area 11. If you were to receive news that your property value dropped by as much as 7% from the previous year, you would think the market tanked but adjoining neighbourhoods could have actually gained by as much as 18%!  Statistics only make sense when compared over time to see "real" performance. With so many variables affecting value, you should really consider getting a custom comparative market analysis completed for your individual property before you decide if it's a good time to sell or buy in your neighbourhood. We at Merv Edinger & Associates of RE/MAX nova are here to help you understand the statistical data & market conditions to make an informed decision. Contact Merv at 1(902)497-1217 to make arrangements to discuss your best options.

 

When is the right time for you to buy a home? The answer is NOW! See why...

There is much doom & gloom in the media about the real estate market.  Do not be intimidated. What the reporters & economists are forgetting to mention is that they are looking at Canada as a whole or the major real estate markets such as Toronto, Calgary & Vancouver.  The figures and stats from these markets do not apply to our own localized marketplace. 

There are many reasons why NOW is the time Why Now is the time to buy a home! to jump into the real estate market.  And here are just a few...

 

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Who ARE TODAY'S Buyers & what they are looking for

As a seller of a home, it is important for you & your agent to know who you are marketing your home too & how to attract them to your home.

NSAR examined research on key demographics in Atlantic Canada. And, we discovered a lot of useful information about 3 groups of buyers: First-time buyers, Moving-up and Downsizers.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First-time buyers are generally not handy, and have no time to be. They are more likely to buy "previously owned" homes, that do not require a lot of time or effort. Move-in ready homes may appeal more to this buyer. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Moving up buyers see their homes as central to their lives and value quality more than price. These buyers also plan to own their home for about 15 years. Higher priced homes, with quality features may appeal more to these buyers.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

To Downsizers, price is more important. Downsizers are retired,or preparing to retire and so they also generally have fixed incomes. This group appreciates homes that are affordable and allow them to focus on family. They are generally looking for structurally sound homes with amenities nearby & small scale yards that are easy to maintain.