Halifax housing market grows, some areas become unaffordable
Canada Mortgage and Housing Corporation study looks at 15 years of data
A study of 15 years of home sales shows many first-time homeowners are being driven off peninsula Halifax by high prices, but that's benefiting sales in other parts of the Halifax region.
The study by the Canada Mortgage and Housing Corporation also looked at income and employment rates among first-time homebuyers.
During the period from 2000 to 2015, housing prices increased in all parts of the Halifax Regional Municipality.
"A rising tide lifts all boats," said Guillaume Neault, an analyst with the CMHC. "All the neighbourhoods in Halifax were moving in the same direction. So price, growth, more sales, days on market declining."
During that period, Neault said some neighbourhoods, such as the south and west ends of Halifax, became unaffordable to many prospective home buyers.
"There was an erosion in people's ability to access those neighbourhoods," he said. "The prices grew to the point where it excluded people who may have wanted to get in."
Neault believes that contributed to buyer interest in other neighbourhoods.
He said employment rates and salaries for workers between 25 and 34 years old have not recovered from the global economic crisis of 2008.
Halifax real estate has gone through a complete economic cycle since 2000, Neault explained, from a seller's market to a buyer's market, followed by a balanced state.
He said the real estate market is currently strongest on the Halifax peninsula, with buyers' conditions prevailing elsewhere.