A recent Edge Realty Analytics report indicated mixed trends in Q2 2024 for the Atlantic Canada real estate market.
Sales
Sales decreased by 0.4% quarter-over-quarter but increased by 3.7% year-over-year. This indicates a slight dip in sales activity compared to the previous quarter but an overall increase from the same period last year.
Listings
New listings rose by 2.4% quarter-over-quarter and by 15.1% year-over-year. This suggests a significant influx of new properties entering the market, potentially increasing supply options for buyers.
Active listings decreased by 0.7% quarter-over-quarter but increased by 13.0% year-over-year. This year-over-year increase points to a growing inventory of available properties compared to last year.
Months of Inventory
The months of inventory, or how long it would take to sell existing homes on the market given the current rate of sales, decreased slightly from 4.7 in Q1 2024 to 4.6 in Q2 2024.
Sales-to-New Listings Ratio
The ratio decreased from 65.8% in Q1 2024 to 64.0% in Q2 2024.
Construction
The number of properties under construction grew by 7.6% quarter-over-quarter and by 31.6% year-over-year, indicating a notable increase in construction activity.
Economic Indicators
Population Growth
Population growth was steady, with a 0.4% increase quarter-over-quarter and a 2.3% rise year-over-year, supporting ongoing demand for housing.
Unemployment Rate
The unemployment rate remained unchanged at 7.6% from Q1 2024 to Q2 2024. For reference, this is higher than Canada’s unemployment rate overall in June, which was 6.4%.
Mortgage Arrears
Mortgage arrears slightly decreased from 0.27% in Q1 2024 to 0.26% in Q2 2024, suggesting a minor improvement in homeowners’ financial conditions.
Rentals
As of July 2024, according to Rentals.ca, in Halifax, Nova Scotia the average rent for a one-bedroom apartment increased by 3.5% month-over-month to $1,992 and by 10.3% year-over-year. The average rent for two-bedroom apartments saw a slight decrease of 0.1% month-over-month to $2,487 but increased by 11.5% year-over-year.
The average rent for a one-bedroom apartment in St. John’s, Newfoundland rose by 2.7% month-over-month to $980 and by 5.8% year-over-year, reflecting steady demand. The average rent for two-bedroom apartments experienced a substantial month-over-month increase of 5.8% to $1,216 but declined by 6.6% year-over-year.
