N.S. home sales fell 31% in April compared to last year

New statistics from the Canadian Real Estate Association show that home sales in Nova Scotia fell 31 per cent in April compared to the same month last year, while the average price dropped 4.6 per cent to $441,625.

New statistics from the Canadian Real Estate Association show that home sales in Nova Scotia fell 31 per cent in April compared to the same month last year, while the average price dropped 4.6 per cent to $441,625.

The reason sales have fallen is that mortgage rates have risen to the highest level since 2008, which continues to affect affordability, said Bidyut Talukdar, an associate professor of economics at Saint Mary's University in Halifax.

Talukdar said this has made borrowing money more expensive for both homebuyers and companies that build homes. "It's only [a] very low percentage of [the population that] can afford a house, buying a house and maintaining a house."

The housing crisis is another reason home sales have fallen, said Matthew Dauphinee, president of the Nova Scotia Association of Realtors. That's because there are fewer options for people changing homes.

"In order for people to sell their homes, they do need somewhere to go, whether it be an apartment, condo, [or maybe a] move to another region. It is currently a seller's market in the province, although the market is more "balanced' compared to the last few years. There's still a lot of people in need of homes, looking for homes and at certain price points we're still seeing a lot of activity like multiple offers," Dauphinee said.

Talukdar said he expects home prices to continue falling over the next five to seven months. However, he said Nova Scotians can't expect to see prices at pre-pandemic levels again.