It's always tricky to predict the future, but I've taken a shot at it with this blog post. With this knowledge, buyers should keep an eye on the market trends in order to come up with realistic expectations when offering on a home. This means that while market factors could be telling buyers otherwise, most sellers will not want to give away their homes at discounted prices. This phenomenon is referred to as price stickiness, which is caused by powerful psychological factors that create resistance in sellers' minds when it comes to accepting less than what they initially expected. Many sellers may not want to accept a low offer and are instead patiently waiting for an offer in line with the height of the market. Many news headlines across Canada talk about decreases in home prices, but these claims may be lacking essential context.Ĭontrary to what may be seen in the headlines, sellers are in control of the sale price. Sellers will not give away their homesĭespite suffering a dip in the housing market since Q1 of 2022, sellers still have power over the prices of their homes.
This increase in buyer demand will insulate Nova Scotians from any upset in the market caused by inflation and rising interest rates, which is great news for Sellers in 2023. (We saw the median price in the province increase by 14.8% in 2022). The increased demand has put pressure on the current housing stock, and as a result, prices have stabilized or increased across the province.
In fact, due to increased immigration, housing demand continues to be at the highest levels since just after the Second World War. Nova Scotia's demand for housing has been on a steady rise. In the last three years, Nova Scotia's increase in population has outpaced that of Canada, and residential housing stock has not yet caught up with population growth. House prices will not decrease in a significant wayĭespite news of falling prices across Canada, the Director of Economics and Statistics for the province, Thomas Storring, predicts a soft landing for Nova Scotia. So if home ownership is right for your timeline and finances, don't wait for rates to drop because they will not be returning to the numbers we saw in early 2022 2. While this is the last rate hike we should see for a while, the Bank of Canada has warned that they are prepared to increase rates further to control inflation if required. In fact, the Bank of Canada started 2023 by raising the overnight rate by another. 25% rates that we saw at the beginning of 2022. There is no indication that we will return to those. 25%, before climbing steadily to end the year at 4.25%. The Bank of Canada Overnight Rate started the year 2022 at. Unfortunately, rates will not decline in a significant way from where we finished in 2022. With the start of 2023 upon us, many homebuyers are wondering what the year will bring for interest rates and wondering if they should wait for rates to fall before jumping into home ownership. Interest rates will not decline in a significant way So without further ado, let's get started! 1. Whether you're a homeowner or thinking of becoming one, it's important to know what to expect in the years ahead. In this blog post, we're going to take a look at three things that aren't going to happen in the Nova Scotia real estate market in 2023. Predicting the future is always a risky proposition, but that doesn't stop people from trying.
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