Halifax Condo Market Expected to Transition to Seller’s Market in 2025

After three consecutive interest rate cuts and the prospect of two more by year end, optimism is finally building in the Halifax condo market, according to a new report from RE/MAX. Average values have edged ahead of year-ago levels in the first eight months of the year, now sitting at $484,491 – up one per cent over the $479,558 reported during the same period in 2023. Condominium sales, however, declined year-over-year, with 510 properties changing hands between January and August, down close to seven per cent from last year’s levels, according to data compiled by the Nova Scotia Association of Realtors.

The trepidation that existed earlier in the year is subsiding and confidence is starting to grow as inflation is curtailed. The most competitive segment of the overall housing market remains under $600,000 in the Halifax area, with first-time buyers most active at this price point. Entry-level condominiums priced between $300,000 and $400,000 are most sought after, while semi-detached homes and townhomes being the preferred choice over the $400,000 price point. At the top end of the market, condominium sales over $750,000 have experienced a modest uptick, with 35 properties sold so far this year, compared to 34 during the same period one year ago. Year-to-date, average price in the top end of the market has softened from year-ago levels, sitting at almost $940,000, down from $957,300 during the same timeframe in 2023. Young professionals and retirees are largely behind the push for higher-end condominiums, with most sales occurring within the city’s downtown core.

Downward pressure on interest rates has prompted more sellers to enter the Halifax condo market in recent weeks, but there are no liquidation sales occurring. Inventory levels are up just over eight per cent from 2023. The vast majority of condominium apartments are found on the peninsula’s northeast quadrant, central and downtown cores. Some developments are situated on the waterfront in Dartmouth (near the ferry) and in Bedford, but supply is less plentiful in these areas.

Investors are also active in Halifax’s condominium market with an eye toward rental properties. Multi-unit housing remains exceptionally popular, with most investors interested in buildings with eight to 10 units. Four-plexes and duplexes are also an option, given the city’s low vacancy rates and upward pressure on rent.

In-migration and immigration have continued to play a role in the city’s growth, although the influx of newcomers has abated somewhat from peak levels. Positive international immigration, coupled with interprovincial migration, contributed to a net increase of 6,000 people in the second quarter of 2024. Major improvements are planned for the Dartmouth waterfront that will make it more pedestrian friendly in the coming years, including public spaces and cruise ships. The redevelopment hopes to mirror the success of Halifax’s vibrant waterfront area that continues to attract both visitors and residents to the area’s restaurants and cafes, outdoor kiosks, retail shops, playgrounds, museums, and the ferry terminal. With continuous investment and a bold new vision for the municipality, Halifax is expected to thrive in the years ahead, given the city’s affordable real estate and spectacular topography.