Hello!

Happy Summer! Oh my gosh it's amazing. Hope you're taking time to really enjoy everything that Nova Scotia has to offer! We are so lucky to call our province home.

The other day I mentioned to a client that I have worked over 30 years through approx. 8 full real estate cycles and that the market this year has been interesting so far to say the least. Uncertainty has hovered over many buyers trying to decide when is the best time to buy; quite a few sellers wanting to 'right-size' are faced with the conundrum of paying higher property taxes and consequential pressure on retirement income if they move after years of benefiting from capped rates; and the rental market has finally opened up with more vacancies. We have been here before. It's a natural part of any real estate cycle but the questions are 'How long will it last? When/will prices continue to go up or down as we move forward? and 'Is this the right time to buy?'

Recently I reviewed a high end well located property purchased in 1975 for $65,000! It is still fairly original but includes the fundamental utility upgrades - new windows, roof, gutters, wiring and some plumbing plus occasional specific renovations over the years (primarily kitchen and baths). Here's where it gets interesting... based on what it is potentially worth today averages out at an approx. 6%/yr return. It is also a primary residence (no tax). Over the years the potential market value has indeed fluctuated and mortgage rates/carrying costs have ranged between 2% - 21% with the majority of the time settling between 10%-12%. 

All of this is to say, I obviously believe that owning your own well located home is always a great investment, especially over the long term. For sure when you buy in factors into maximizing your profits but so do interest rates. With the July 30 BOC announcement that rates are holding around 4%, this is the time to secure a 5 yr mortgage. Consider the following;

$500,000 mortgage @ 4%, 5yr, 25 yr amt = $2,610.10/mth. 

Assuming rates stay the same for 25 years (albeit unlikely) you will have paid approx. $289,030 in interest over 25 years.

Now look at the same scenario at 7%, 10% and 12%...

At 7% for 25 yrs = approx. $550,623 in interest @ $3502/mth PI 

At 10% for 25 yrs = approx. $841,727 in interest @ $4,472/mth PI

At 12% for 25 yrs = approx. $1,047,845.89 in interest @ $5,159.50/mth PI

And if you really want to take advantage of today's relative low rates, act on the annual prepayment privileges and/or increase your monthly mortgage payments and/or increase the frequency of payments. Please speak with your mortgage specialist for professional advice. It will be worth your time! 

Here is the snapshot of MLS residential sales to date;

Across Nova Scotia Jan- July 31, 2025 ~ 6346 solds - median sold price $455,000

(compared to 10,718 solds Jan - Dec 2024 - median sold price $416,000)

HRM Jan- July 31, 2025 ~ 3155 solds - median sold price $565,000

(compared to 5185 solds Jan - Dec 2024 - median sold price $538,500)

Peninsula Halifax Jan- July 31, 2025 ~  332 solds - median sold price $650,000

(compared to 506 solds Jan - Dec 2024 - median sold price $625,138)

Current MLS Actives as of July 31, 2025

Across Nova Scotia - 4,203 listings of all types and styles 

• listed between $29,500 - $9,325,000 (median LP $479,000)
• plus 626 conditional sales

Across HRM - 1268 listings of all types and styles

• listed between $65,000 - $6,900,000 (median LP $665,900)
• plus 250 conditional sales

Peninsula Halifax - 149 listings of all types and styles

• listed between $294,900 - $6,395,000 (median LP $699,900)
• plus 10 conditional sales

Hmmm... across Nova Scotia, comparing the current median list price to the lower median sold price so far since Jan 1, 2025 = approx 5% difference... is reasonable. Just looking at Peninsula Halifax = approx 7% difference... also reasonable. However, looking at the numbers across HRM  = approx 15% in the difference ... meaning outside of the peninsula there are some listings that are obviously priced too high. Watch for price adjustments on those properties! Could be an opportunity to take advantage of 'seller fatigue', especially if the property is vacant... 

I hope that this newsletter gives you good food for thought. Please contact me anytime to discuss your real estate present or future goals. Also, thank you for your ongoing referral business! I love working with your contacts and I very much appreciate the business. Thank you very much for your trust and confidence.

Cheers to Summer! :) 

With Gratitude Always,

Michele