In the Maritimes, property costs continue to rise, making affordability ‘very tough’

Key sentence:

• According to latest data from the Canadian Real Estate Association, housing costs in the Maritimes are continuing to rise.

It’s no mystery that purchasing a home is difficult, especially in today’s market.

According to recent data from the Canadian Real Estate Association, housing expenses in the Maritimes continue to grow.

“It’s not all that affordable unless you have a very excellent income,” Jim Graham, executive director of the Affordable Housing Association of Nova Scotia, said.

According to Shaun Cathcart, a senior economist with the Canadian Real Estate Association, first-time purchasers are especially challenging.

Also read: N.B. COVID-19: 34 fresh cases, First Nations experience a rise in numbers

“It’s extremely difficult.” Affordability is in jeopardy. Interest rates are still low, but the stress test must be passed. There’s also the risk that someone will outbid you, even if you can afford the property.”

In the past year, the average home price in Nova Scotia has increased by roughly 20%. It’s now worth $365,692.

In New Brunswick, the normal price of a home has risen by 32% to $267,000.

Despite this, both provinces are much less expensive to buy a home than the national average.

This figure has increased by 18%, implying that the average home in Canada will cost $716,585.

According to real estate adviser James Dwyer, the median sale price in Halifax is $450,000.

“If you look back ten years, it’s without a doubt the highest median sale price we’ve ever seen.”

The current situation indicates a supply and demand problem.

“In HRM, we had 900 residences come on the market in October of 2020. We have 390 right now, as of the end of October,” Dwyer added.

Dwyer anticipates a further rise in costs over the winter, as well as a busy spring since interest rates are expected to rise.

He does, however, believe that things will eventually balance out.

“Over the next couple of years, the median sale price should level down,” he says.

Meanwhile, the Nova Scotia Affordable Housing Association is optimistic.

“There isn’t a quick fix.” It’ll take some time. And it will necessitate government support,” Graham argues. “However, as long as everyone understands that those are the things we require, we’ll be fine.”

It’s a difficult time, and experts hope that the market’s — and buyers’ — pressure will alleviate.

Source: CBC News

Get Canada and New Brunswick News’s top News, Market news, and other worldwide news only on New Brunswick Tribune.