Real Estate Market Trends: November 2023 vs. November 2024 

Let's dive into the changes in the real estate market over the past year. If you've been following the news or have heard chatter about interest rates, you may have noticed a significant trend: lower interest rates have increased demand, leading to more home sales despite rising prices. Here’s a closer look: 

Key Numbers 

 - Average Purchase Price: Increased from $540,115 in November 2023 to $590,362 in November 2024—a 9.3% jump! 

- Sales: Rose from 300 homes sold last year to 341 this November, marking a solid 13.7% increase. 

- Interest Rates: Dropped from 5.00% to 3.75%, a major advantage for buyers! 

- Average Months Supply: Decreased from 2.5 to 2.2 months, indicating a tighter inventory. - Homes for Sale: Fell from 809 to 771, making the market even more competitive. 

 The Impact of Lower Interest Rates 

The most significant factor influencing the market is the drop in interest rates from 5.00% to 3.75%. Here’s why this matters: For buyers financing a $400,000 home, this reduction in rates means savings of over $300 per month compared to last year. Lower borrowing costs have encouraged more buyers to enter the market, contributing to a nearly 14% increase in sales.  

Why Are Prices Still Rising? 

Despite the lower interest rates, home prices continue to climb. Here's the breakdown: 

 - Reduced Inventory: We have 48 fewer homes listed compared to last year, resulting in increased competition among buyers. 

- Strong Demand: With lower rates, buyer enthusiasm is high, giving sellers the upper hand. This combination of high demand and limited supply has led to an almost $50,000 increase in the average purchase price. 

 What Does This Mean for You?

 - For Buyers: Lower interest rates lead to more manageable monthly payments, despite higher prices. However, be prepared for competition—acting quickly and making strong offers will be essential! 

 - For Sellers: You’re in an excellent position! Rising prices and strong demand mean you can maximize your return. With fewer homes available, competition is less intense. 

  What’s on the Horizon? 

 As we head into 2025, the market's direction will largely depend on interest rates and the availability of homes. If rates remain low, demand will likely stay strong, potentially driving prices even higher. However, an increase in inventory could relieve some pressure on buyers and moderate price growth. 

In Conclusion 

This past year has been quite a journey for the housing market. Lower interest rates have kept buyers engaged despite rising prices, resulting in a notable increase in sales. If you're considering buying or selling, staying informed and ready to act will be crucial to navigating this market. Knowledge is power, and I have the expertise to guide you every step of the way! 

 Have questions and want to discuss your next move? 

Let’s connect—I could talk about real estate all day (and I usually do)! 

 ~ Real Estate & More With Kor!

I have recently been in discussions with multiple individuals regarding the Nova Scotia Secondary and Backyard Suite Incentive Program and have realized that there is confusion on the topic. I figured I would do my best to explain the differences between the “Incentive Program in Relation to Secondary and Backyard Suites” and the “Municipal Planning Strategy for Backyard and Secondary Suites” as these have very different meanings but sound very similar.

Municipal Planning Strategy

The Municipal Planning Strategy was revamped back in September 2020. The idea of this strategic plan was to complete communities and meet affordable housing targets. It is important to remember that this plan was to be self-funded by the homeowner.

For more information and to understand the difference between secondary and backyard suites, please check out my previous blog written back in February 2023: https://koreeburt.com/blog.html/secondary-back-yard-suites-7850120

Incentive Program in Relation to Secondary and Backyard Suites

Now let's get into the Nova Scotia Secondary and Backyard Suite Incentive Program. This is where I am seeing some confusion. Both programs allow you to build a secondary suite; the difference between the two is that one option has a forgivable loan and the other doesn't.

This incentive program is available to eligible homeowners who plan to build a secondary suite within their existing property or on the property of their existing home. Homeowners may receive up to 50% of eligible project costs, to a maximum of $40,000.

Eligible project costs include:

• Labour and materials

• Design fees

• Purchase and placement of a prefabricated suite

• Taxes and other associated costs with the application for and building of the suite

How does this all work and what is required to receive the forgivable loan?

First, qualifying homeowners will be required to sign a Promissory Note and an Operating Agreement. The loan will be provided to the homeowner AFTER construction is complete. Homeowners must have the available funds up front to complete the project, obtain an occupancy permit, and submit the invoices to the program staff. A portion of the loan will be forgiven each year that the homeowner meets the tenant eligibility requirements. This is important to note. Once the project is completed and approved, the program provides a letter of Conditional Approval that outlines the conditions of the loan. The loan is not outright forgiven until after the 5-year period and all tenant eligibility requirements have been met.

In order for the loan to be forgiven over 5 years, the homeowner and tenant must meet the criteria for either the supportive housing or affordable housing streams. There also needs to be a year-to-year or month-to-month lease signed for the 5 years that the loan is active on the suite. (Short-term leases are not allowed while there is still a loan on the suite.)

Supportive Housing Stream:

• Is 65 years of age or older and/or a person living with a disability.

• The homeowner is 65 years or older and/or a person living with a disability.

Affordable Housing Stream:

• An individual or household whose income is below income limits and to whom the unit will be rented at below-average market rates.

Under this incentive program, you are agreeing to provide affordable housing. Affordable housing is when the rent is below average market rent. If you are renting under the affordable housing stream, there are certain limits that you must rent under.

For example, below are the household limits and average market rent caps in HRM:

Household income limit:

• $47,000 for a 1-bedroom suite

• $60,000 for a 2-bedroom suite

• $67,500 for a 3+ bedroom suite

The average market rent (with a 20% reduction to accommodate affordable housing criteria):

• $880.00 a month for a 1-bedroom suite

• $1,124.00 a month for a 2-bedroom suite

• $1,334.00 a month for a 3+ bedroom suite

In conclusion, it's essential to differentiate between the Municipal Planning Strategy for Backyard and Secondary Suites and the Nova Scotia Secondary and Backyard Suite Incentive Program. While both aim to address housing needs, they operate very differently.

Understanding how these programs work is crucial, especially regarding eligibility criteria, loan forgiveness conditions, and tenant requirements. I encourage anyone who is thinking of going down either one of these routes to thoroughly research and know exactly what you as a homeowner have to gain or loose based on your own personal scenario. These programs are not a one size fits all and have many moving parts that I believe need to be fully understood before starting any construction.

As housing continues to be a pressing issue, initiatives like these play a big role in providing inclusive communities and addressing housing affordability challenges. 

If you have any further questions about these programs, get in touch. I am always here to help =) 

~ Real Estate & More With Kor!

Welcome to this lovely 3-bedroom, 2-bathroom home nestled in the community of Hatchet Lake. With 2,188 square feet of living space, this home provides ample room for relaxation and entertainment for everyone. 

As you step inside, natural light floods the interior, creating an inviting atmosphere throughout. The main level features a renovated kitchen, complete with modern appliances and ample storage, making meal preparation a delight. Adjacent to the kitchen is a spacious living room, dining area and a bonus space that is currently used as a playroom, which would also make a lovely home office. The living room has a electric insert fireplace that is perfect for gathering with loved ones or unwinding after a long day. On the main level you will find the large primary bedroom along with the second good sized bedroom and a renovated bathroom. 

Downstairs, you'll find a cozy lower level rec room, perfect for movie nights or as a play area for children. The third bedroom and second bathroom are located in this great space. You will also find a large laundry room, furnace room with additional storage space. To complete the lower level, there is a workshop with its own entrance, perfect for more storage and all of your DIY projects. 

Step outside onto the spacious deck and discover a peaceful backyard retreat, where you can enjoy the tranquility of nature or host summer barbecues with friends and family. A spacious backyard shed offers convenient storage for all your outdoor equipment and gardening supplies.

This property also boasts new shingles, ensuring peace of mind for years to come. Both bathrooms have been  renovated. With the inclusion of heat pumps, comfort is guaranteed year-round, while new front and back decks provide the perfect spots for morning coffee or evening relaxation.

Conveniently located just 10 minutes from Bayers Lake and 25 minutes from downtown, this home offers easy access to shopping, dining, and entertainment options. Close proximity to schools and a community center adds to the appeal, making it an ideal choice for families.

Don't miss your chance to make this delightful property your own – schedule a showing today and experience all it has to offer!

434 Ketch Harbour Road, a 1.8-acre ocean front building lot. This prime piece of real estate offers an unparalleled opportunity to fulfill your Nova Scotia dream home aspirations. Boasting breathtaking ocean views that stretch as far as the eye can see.

This property provides a front-row seat to one of Nova Scotia's most captivating displays. Surrounded amidst magnificent homes in the Breakers community, this property offers the perfect blend of seclusion and sophistication, while still being close to all amenities. Whether you're seeking a peaceful retreat or an idyllic setting to raise a family, this location caters to a variety of lifestyle preferences.One of the most enchanting features of this property is the opportunity to watch various sizes of boats day by day. This maritime activity provides a constant source of fascination and awe.

As evening falls, unwind and relax to the soothing sounds of the ocean waves crashing against the shore. Sit back and admire the view from your future deck, your living room and potentially all areas of your dream home. This property offers a sanctuary from the hustle and bustle of everyday life. A true ocean front oasis awaits.

Don't miss your chance to own a slice of paradise in Nova Scotia. With its stunning ocean views, expansive lot size, and unparalleled natural beauty, this property is ready to be transformed into the home of your dreams. Embrace the Nova Scotia coastal lifestyle and make your vision a reality today.