The Best Mortgage Rates in Halifax

Halifax Key Stats

• Halifax population (2011): 390,328
• Dwelling units (2011): 165,033
• Average weekly earnings (2012): $795
• Average household income (2012): $58,262

Source: Stats Canada

Halifax Mortgage Rates to Moderate in 2013

Mortgage rates are expected to remain at historical lows for the first portion of 2012 before moderating later in the year. The CMHC forecasts that the 1-year posted mortgage rate will be within the 3.1 to 3.6 range, with five-year posted rates in the range of 5.0 to 5.4 per cent. Rates are expected to rise in 2013 to 3.5 to 4.1 per cent for one-year, and 5.1 to 5.6 per cent for 5-year mortgage rates.
Source: CMHC

Halifax 2012 Housing Outlook

Halifax is poised for economic growth, which will be reflected by incremental housing market demand. Due in part to the recent federal shipbuilding contract, employment levels have been stimulated in addition to the need for housing. This is expected to contribute to an additional eight per cent of sales this year, and another two per cent in 2013.

Multi-family housing is the dominant factor behind start levels, with apartment construction increasing sharply in 2010 by 74 per cent to 1,043 units.This growth continued into last year, increasing by an additional 56 per cent to 1,724 units – a 20-year high. However, this activity is expected to decline in 2012 to 12,50 starts, and an additional 20 per cent decrease in 2013 to 1000. These numbers, however, are expected to remain above the 10-year average of 1,016 units.

Single detached starts declined by 13 per cent in 2011, down to 900 units – the second lowest level in 20 years. These levels are expected to recover in 2012, due to low mortgage rates and positive net migration, to 1,100 units, and up to 1,200 in 2013.

Average resale prices climbed 3.5 per cent in the first quarter of 2012 to $268,000, and are expected to grow to $275,000 before year's end. In 2013, it is expected that prices will rise by another three to four per cent to $285,000.

Source: CMHC Housing Market Outlook

Halifax Housing Market & Mortgage Rate Forecast

• Population: 398,000 (Stats Canada 2009)
• A 1.7% increase is expected in economic growth in both 2010 and 2011.
• Economic growth will be a result of energy-related investments.
• Employment rate remains high due to strong in-migration and steady consumer spending.

Halifax Mortgage Rates Will Slowly increase in 2010.

The CMHC best case scenario, expect mortgage rates will continue to slowly increase in 2010 with a one year mortgage rate to be in the 3.6 to 4.8% range and the three and five year mortgage rates to be in the 4.2 to 6.7% range. In 2011, CMHC forecasts that the one year mortgage rate will be in the range of 5.0 to 6.0% whereas, the three and five year mortgage rate will be in the range of 5.6 to 7.2%. However, if the economy recovers at a faster rate than expected, mortgage rates may increase at a more rapid rate.

Halifax 2010 Housing Outlook

The Halifax housing market will be strong in 2010, according to CMHC. This strength is due to higher wages, strong employment levels and new migrants to the city.

A 22% increase is expected in 2010 for new home construction. Single starts are forecast to increase 14% with 1,000 units and a further 5% with 1,050 units in 2011. Whereas, multiple starts are expected to increase 30% with 850 units in 2010 and another 10% with 950 units in 2011. New home prices are expected to modestly increase in 2010 and 2011.

A 6% increase is expected in MLS sales in 2010 and a further 2.4% increase in 2011. This increase is a result of low mortgage rates and the people taking advantage of the market conditions. The average home prices will also increase. In 2010, the price is expected to reach $243,500 and $250,000 in 2011. This increase is after two years of having a decline in MLS sales. Sales are expected to higher than 6,000 in 2010 and higher than 6,300 in 2011.

CMHC Halifax housing market & Halifax mortgage rate forecast