Buying a home in Halifax is probably the biggest purchase you’ll ever make. So it makes sense to take the time to get your finances in order and do a little research on the real estate market in the city before taking the plunge.
Let’s take a look at where home prices are currently at in Halifax, and what you can do to make sure you spend within your budget.
Key Points On The Average House Price In Halifax
- The average house price in Halifax-Darthmouth is currently $581,302.
- The average house price in Halifax is higher than the provincial average.
- To find out how much house you can afford in Halifax, ensure your GDS ratio is below 39% and your TDS ratio is no more than 42% – 45%.
What Is The Average House Price In Halifax?
The average home price in Halifax-Darthmouth is currently $581,302. That’s an 8.7% increase from the same time 12 months earlier. Halifax is the most expensive city in Nova Scotia to buy a home in, with the average house price almost double that of other cities in Nova Scotia.
It’s easy to understand why Halifax’s home prices are the most expensive in Nova Scotia, given the fact that it’s the capital of the province and is home to much of Nova Scotia’s employment opportunities and diverse culture.
Compare The Average House Price In Halifax
| Average House Price | Year-Over-Year % Change | |
| Canada | $659,395 | 7.6% |
| Nova Scotia | $428,539 | 13% |
| Halifax–Dartmouth | $581,302 | 8.7% |
| Highland Region | $213,935 | -4.7% |
| Cape Breton | $210,722 | 2.1% |
| South Shore | $288,110 | 1.0% |
Source: CREA (January 2024)
What Can Affect The Average House Price In Halifax?
Many factors can affect property values, including the following:
Supply And Demand
Basic economics plays a role in how much homes are valued, whether in Halifax or anywhere else. The higher the demand relative to supply, the higher the value. Therefore, buyers will be more willing to pay higher prices for it.
The real estate market is no exception to the supply and demand rule. If there are few houses on the market compared to the number of buyers looking for a new home, sellers will be in a better position to command higher prices. And buyers will be more open to paying higher prices to outbid others vying for the same property.
On the other hand, if there are plenty of houses available and not as many buyers on the market, home prices will likely lag as a result of weaker demand.
Job Market
When the labour force is thriving and a higher percentage of people are earning a comfortable living, there may be more demand for housing because consumers can afford a home purchase.
On the flip side, a weaker economy may push housing prices down, as consumers will have less purchasing power.
Mortgage Interest Rates
Your ability to afford a home is not only dependent on the going prices of real estate but the interest rate you will be charged, too. When mortgage interest rates are high, the cost of borrowing is also high. In this case, fewer people may be able to afford a home purchase. And when there are fewer buyers on the market, there may be downward pressure on home prices.
The opposite is true when mortgage interest rates are low. In this case, buyers have more borrowing power, as getting a mortgage — and ultimately buying a home — is more affordable. In turn, lower rates can help drive home prices up, as more buyers are in a better financial position to make a home purchase.
Location Of The Home
Location plays a key role in the value of real estate. Similar houses in two completely different locations will command two very different prices.
Size Of The Home
More square footage generally equates to a higher price tag, as more material is required to construct the home.
Age And Condition Of The Home
Older homes that require some work will typically be considered less valuable compared to newer homes in excellent condition.
Features And Finishes
Homes that have more expensive features and finishes will generally cost more than those with basic features. Hardwood flooring and granite countertops, for instance, are considered more desirable than vinyl floor tiles and linoleum counters.
How Much Should You Spend On A Home Purchase In Halifax?
Your income will help you get a basic sense of what you may be able to afford, but it’s far from the only factor to consider. Before you apply for a mortgage and start your search for a new home, you should sit down and crunch the numbers to figure out exactly how much you can afford.
To determine how much you should spend when you buy a home in Halifax, consider taking the following steps:
Calculate All Your Expenses
Your income will play a role in figuring out how much you should spend when you purchase a home. But what about all your current expenses that are eating into your income every month?
Make a detailed list of all of your monthly expenses to help you identify what’s left over and available to be used to cover mortgage payments. Typical monthly expenses can include the following:
- Rent
- Utilities
- Groceries
- Car loans
- Gas
- Car insurance
- Credit card bills
- Subscriptions
- Student loans
- Personal loans
- Entertainment
- Miscellaneous expenses
Calculate Your Debt Service Ratios
Your gross debt service ratio (GDS) and total debt service ratio (TDS) help to measure how much of your income can be dedicated to mortgage payments after all outgoing expenses have been accounted for. Lenders will assess these ratios to determine your ability to secure a mortgage, or what loan amount to extend to you if you are approved.
Your GDS represents the principal, interest, taxes, and half of any condo fees relative to your income, and should be less than 39%. Your TDS represents all of your debt — including all housing debt — that you pay every month compared to your income, and should be less than 42% – 45%.
The reason why your GDS and TDS ratios should be no more than the above-mentioned percentages is to keep risks low, both for you and your lender.
Final Thoughts
Before buying a home in Halifax, take some time to get your finances in order, save up for a down payment, and strengthen your credit profile. Speak with a seasoned mortgage specialist to help you understand what type of mortgage you can secure, and team up with a real estate agent experienced in the housing market in Halifax. Taking the time to properly prepare for a home purchase will ensure a smooth transaction that results in a purchase that comfortably fits within your budget.
