How will Halifax's "red hot" housing market be affected as inflation and interest rates rise?

The Halifax housing market has been described as "bright red" and homes have received numerous bids.

HaliPad RealEstate Owner and broker Chris Perkins said this trend will continue in 2022.

Read more:  Halifax's "challenging" real estate market won't cool quickly, experts say

Perkins says things The market hasn't gone down yet, but it's slowing down a bit.

"Last month [beyond the question] dropped to about 9%, so we withdrew," Perkins said. "I think that's because people are taking the time to think about affordability."

This is It happens because inflation and interest rates continue to rise.

"So what people borrowing money for some reason are probably suffering now is almost a one-sided loss," said Mosherander, a professor of economics at Concordia University and Dalhousie University. Said.

"That is, if you have a credit line, you already know it's up. If you have a floating rate mortgage, it's already up, but if you have credit card debt.

Interest rates As the rate rises, people's borrowing input generally declines.

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"If you were expecting your mortgage to pay $ 1,000 a month, it's now $ 1,200. It will be, "Lander said.

And in the end, rate hikes will affect the housing market.

"It removes the air from it," Lander said.

"Are it going to completely destroy the market? No, but [Bank of Canada] has announced in the last few weeks that the Canadians who are concerned are over-debt. It is very clear that the housing markets in Halifax, Novascosia, and across Canada are oversized. Heating. So they are the ones that are causing the biggest distortions in the economy, especially that market. It is very clear that we are raising interest rates to target ourselves. "

Perkins, despite all, Halifax is still a buyer's market, which is largely It is said to be due to supply. Currently, the market has a supply of about 1-1.5 months.

"A balanced market is 3-6 months," Perkins said.

To enter a balanced market, you need to triple your inventory.

Read more:Young Nova Scotia facing a "tough decision" on living expenses

But even the seller's market , Perkins says there was a change. Sellers should no longer expect exorbitant bidding wars, and they should price their homes for what they deserve.

"Don't underestimate your property to wage an artificial bidding war," he said.

For buyers, Perkins said people because the margins could change as interest rates rise. States that expectations may need to be adjusted.

"It's not about overusing yourself, it's about making the right decisions. It doesn't matter what the market is doing. Allowing you to make intelligent choices. , You need to make sure you get all the information. "

For those who bought recently, both Perkins and Lander are still considered good investments, even if they were bought to live in the house. Say it should.

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