By Sherry MacLeod
Managing Broker of Cape Breton Realty
Our market in Cape Breton and North East Nova Scotia is closely tied to the dynamics of the Toronto, Ontario, and Alberta markets, as many of our buyers originate from these regions. However, we are also witnessing a resurgence of European buyers, adding another layer to our market’s complexity.
The political climate in the US, combined with ongoing conflicts in the Middle East and Ukraine, further impacts our market. These global uncertainties are driving a few more buyers into our marketplace, as Nova Scotia is seen as a safe place to live and a good investment. Immigration is another contributing factor.
As summer shines upon us, the real estate market in Cape Breton and North East Nova Scotia, much like the weather, has its fluctuations. Recently, we’ve seen a notable shift, with home sales in the Greater Toronto Area (GTA) down by 16% year-over-year, despite an interest rate cut. The average selling price has dipped by 1.6%, settling at $1,162,167, according to the Toronto Regional Real Estate Board.
Interestingly, this trend isn’t isolated to Toronto. Calgary has also experienced a decline in home sales this June. However, the Calgary Real Estate Board highlights that their activity remains 17% above long-term trends, indicating robust underlying demand despite the apparent slowdown.
In our local market, properties are lingering longer before being sold. Sellers eager to close deals are starting to reduce prices, providing buyers with more options. This shift suggests that if interest rates do not decrease further, we might see a continued downward trend in home prices.
A significant challenge in today’s market is affordability. Despite ongoing discussions about housing shortages and homelessness, many properties remain out of reach for potential buyers due to high costs. This is exacerbated by broader economic conditions, such as high living expenses leading Canadians to delay starting families.
In Sydney, 300 new units are under construction, half of which are designated for students. This influx of housing will free up some lower-end properties, which should help first-time buyers with affordability. But the building of the new medical school combined with the current shortage will play factors as well.
The current environment of stabilized yet high interest rates has notably reduced the number of investors, making room for end-user buyers to enter the market with less competition.
McLister’s advice to “batten down the hatches” in anticipation of prolonged high rates underlines a cautious outlook. However, he also predicts that slowing economic growth could eventually compel the Bank of Canada to introduce more rate cuts, potentially at the upcoming meetings on July 24 or September 4.
Buyers today are more discerning, often waiting for homes that meet their entire wish list. This patience has led to multiple offers on turnkey properties listed at the right price. Conversely, homes needing minor renovations might stagnate, offering opportunities for those willing to invest in cosmetic updates. If you are a buyer in today’s market, keep an open mind and be willing to simply apply some lipstick. It’s a great time to get some great deals. If you are looking to purchase a home, our team of Realtors is ready to help you navigate this ever-changing market. Check our website, capebretonrealty.com, or call 877-535-2485.
