Halifax, NS

Canada Mortgage and Housing Corporation

Fall 2008

Economic Overview for Halifax

Halifax has had sound economic fundamentals in the past few years but the economy is starting to show signs of change. Overall Employment in Halifax remains strong, rising 2 percent in 2007 and reached near record levels midway through 2008, however growth has moderated to 0.7 percent and is expected to remain near 1 percent in the next two years.

Metro Halifax is experiencing a high level of economic activity. Commercial and residential construction projects have boosted the demand for labour. Developments such as Dartmouth Crossing, Russell Lake West, the parking facility at the airport and hotel construction spurr on economic growth

Both residential construction and home sales are fore casted to ease, however sustained employment and strong unemployment will help bolster housing demand.

New Home Construction

2008 saw a decline in new home construction and is expected to remain the same in 2009. New Single detached homes however has remained strong. After the record year for sales in 2007 inventory was depleted and builders built new to catch up to demand. Single starts are up 12 percent in the first three quarters compared to 2007. This trend should soften in the last quarter and into 2009.

There are several reasons for the expected drop in single family detached starts. Inventory is up giving buyers more choice. Also increased economic uncertainty, weaker economic growth, slower employment and wage growth will result in weaker demand for new housing.

Resale Market

In the re-sale market, home sales have cooled compared to last years record. Average price for an existing home continues to rise while price growth will remain positive through next year. Sales are down 7 percent over last years record. Average price is forecast to be 235,000 in 2009. New home average price is forecast to be 355,000. Average days on market has decreased from 89 to 84 days on market.

The Halifax market is sound and there is no reason to panic. Sure sales are down, but only from last year which was a record, they are on par with 2002 and 2005 which were records at the time. Average price continues to increase. I hear a lot of people saying they are going to wait it out to see if prices come down. In our market this is not a good idea, prices are forecasting to rise steadily for the next couple of years.

If you are in the market for Halifax Real Estate, give me a call and I can discuss your options. I have a great team of mortgage brokers, inspectors, insurance agents, tradesman, contractors at my disposal to make your next home purchase as stress free as possible. I can be reached at andrewperkins@exitmetro.ca or by phone 488-0012.

Related articles

- Halifax Real Estate Historical Data

- Halifax Real Estate 3rd Quarter Stats

Andrew Perkins

Your Halifax Real Estate Expert

The Just Us! Fair Trade Cafe Barrington St. Halifax NS easily became my favorite cafe the summer of /08. Once discovering it, I went out of my way for coffee. For reason of Fair Trade, yes - these folks really take it seriously and go all the way with organic FT chocolate, tea and sugar as well as coffee.

The staff here were terrific young people, always friendly and personable, with great service, making me feel right at home. It was a delight to come in mornings to cheerful welcoming attitudes. Believe me - this doesn't happen everywhere!

In case you are unaware, the coffee industry started with slave labour, and continues in very similar circumstances. Coffee is also the second largest (legal) commodity in the world, next to crude.

Some cafe owners take seriously the understanding and importance of Fair Trade, buying only from fairly traded cooperatives. Hence the Canadian and US regulating body, called 'Trans Fair'. If the coffee doesn't carry this logo, the origin is questionable.

The dollar. This is what it comes down to for most cafe operation, including and especially BIG COFFEE. Many choose to completely ignore the needs of others in this world. Some pay token respect, featuring one coffee a month (this is the case of the biggest chain we know of), one coffee every day or two, or none at all. I have sadly heard people say about the issue, "I don't want to know!"

Then there are those like 'Just US!' who go the distance, following their conscience, paying more for their coffee than the others. How much more? Varies. But consider That cooperatives pay about 1.30 per pound of coffee. I've seen it reported on the Documentary, 'Black Coffee', that the 'BIG GREEN MONSTER' pays around .30 for the finest Ethiopian beans, while the people starve.

There is very good reason to support Fair Trade Coffee, as well as other products. Ten Thousand Villages sells fair Trade products.

Just US! Fair Trade Cafe Locations

'Black Coffee'

Ten Thousand Villages

Stamos Sotiropolous of George & Lito's on the corner of Windsor and Duncan, in Halifax NS, 'proposes an invite'. When you are in need of a spot for meetings or just a quick "break", a VIP status and appreciation discount is available for your visit.

Call Stamos to arrange details for the entire team. Ask him about his offer - tell him that you saw it here!

Decked out here for Halloween, you are certain to find the charming bistro cafe' trimmed for Christmas soon, as part of the initiative to constantly remain 'fresh' with decor, menu changes and offerings.

An eclectic menu with a Greek & Italian slant, is delightfully prepared to please the senses - and with apparent upmost care. When you are served your fare, regardless of what it is, along with it comes the unmistakable intended perfection from the chef's hand.

To me there are important priorities in life. I always knew without a doubt that a great deal of care was put into whatever I was served here.

Getting acquainted with Stamos at George & Lito's over my summer in Halifax, he always had a friendly welcoming greeting. In an unpretentious, genuine atmosphere that is at once urban, yet homey in essence. I always felt slightly 'transported' to a quaint European bistro, cozy and comfortable.

Remember George & Lito's for your gatherings large or small. Those Christmas events are coming up, soon!

For a slice of relaxed casual chic, once you try, you will love this charming bistro!

902-405-3542
2186 Windsor Street , Halifax , NS B3K 5B8

More on George & Lito's Halifax Bistro

"There are two ways to live your life. One is as though nothing is a miracle. The other is as though everything is a miracle." -- Albert Einstein

YOUR OWN WEBSITE

Deborah Pearce is a Kelowna Business Woman & webmaster established with locals and internationals in various aspects of Interiors, Art, and Business for over 20 years. LIVING SPACES features over 140 ARTICLES on Staging, Art and Interiors.

Deborah's blog frequently features interior design, real estate, community, environmental, internet, travel, art and human interests.

The Danceoff - Free Style, Atlantic Canada Hip Hop Competition

Saturday November 15 2008 at St. Pat's Alexander School on 2277 Maitland St. Halifax NS

Ages, 4-11, 12-18 and 19 and over. Showcasing Atlantic Canada's Talent - no experience required!

There are still positions open to compete. For informaiton - www.thedanceoff.ca or email info@thedanceoff.ca

Registration only $5 - Spectators $10

Find The Danceoff on Facebook - search Altantic Canada's first Free style, Hip Hop Competition.

Ages 4-12 - Cash Prizes and Gifts of $300 and an opportunity to do openings for various shows/artists in Canada. Or if you are an individual 4 classes free.

Ages 13-18 - Cash Prizes and Gifts of $500 and a chance to work with a well renowned choreographer from Toronto. Two free classes per person for the members in your group to the Maritime Centre for African Dance and an opportunity to do openings for various shows/artists in Canada. Or if you are an individual 4 classes free.

Ages 19 and up - Cash Prizes and Gifts of $750 and an opportunity to work with a well renowned choreographer from Toronto. Two free classes per person for the members in your group to the Maritime Centre for African Dance. Of if you an individual 4 classes free.

BA-RRRING IT!!!!!!!!!!!!!

In light of all of the talk I am hearing about the market being "down" n Halifax, I thought I would look at what the CMHC reports are telling us. Here's what I found:

NEW CONSTRUCTION: The overall pace of residential construction activity across Halifax is eased slightly this year, and is expected to finish with a total decline of 1.6% from last year. It is expected that new construction sales will climb 4% in 2009, reaching its highest level since 2004, supported by multi-residential construction . While the demand for single-detached homes is slowing, a trend which is expected to continue, the demand for multi-unit construction will continue to be strong for the next 1-1/2 to 2 years.

The decline in demand for new single-detached homes can be attributed to [mainly] three things:

1. Changing demographics: smaller families and rising occurrence of more DINKS (double income no kids) and single-person homes.
2. Rising costs: The cost of housing construction rose 14% when compared with 2006, while existing home sales rose only about 7% during the same period.
3. Competition from the existing homes market: Existing home sales are only expected to increase by about 3% in 2009, creating competition for the new homes market.

RESALE MARKET: Keeping in mind that 2007 was a record year for MLS(tm) sales, we saw a decline in overall sales in 2008; inventory was weakened by the record sales of 2007, driving prices up prices in the first quarter of this year. 2009 sales look to be lower than the record year of 2007, but still relatively high when compared to previous years; prices are expected to increase approximately 3% in 2009, keeping the average price of an existing home about 30% lower than the average price for a new home. Increased inventory levels have helped keep growth below the 7-8% we have seen in previous years.

Overall, I think that while we are noticing that it is definitely slower, maybe we were just a bit "spoiled" by the successes of 2007. We are still on target with previous years sales, prices are still increasing, and there is a good inventory available. We traditionally see a slow-down at this time of year; this year shouldn't be, and isn't, any different. We have one of the most stable markets in Canada; we should be thankful for that.