Most Halifax Neighbourhoods Are in Overbidding Territory

Despite higher interest rates, the Halifax housing market continued to see strong bidding activity on homes in the third quarter.

By Josh Sherman | 2 minute read

While some major Canadian markets are firmly planted in underbidding territory, the opposite is true for the Halifax region.

More than half (58%) of Halifax region’s most popular neighbourhoods were in overbidding territory in the third quarter of the year, according to digital real estate platform Wahi’s inaugural Nova Scotia Market Pulse Report.

To identify overbidding and underbidding neighbourhoods, Wahi compares the differences between median list and sold prices for all types of homes, including condo units and houses. For the analysis of the Halifax region — which includes Halifax, Dartmouth, Bedford, Coal Harbour, and Timberlea — Wahi’s data team excluded neighbourhoods with fewer than three transactions recorded between the start of July and end of September (the third quarter).

Based on Wahi’s findings, Maplewood, in Timberlea, was the most overbid neighbourhood in the Halifax region, with a difference of 13% between listing and selling prices. Meanwhile, Halifax’s South End neighbourhood was the most underbid, with homes selling for 4% less than asking. The top five rankings for most overbid and underbid neighbourhoods reflect a trend that Wahi has observed in other Canadian housing markets for much of the year: “As we’ve seen with our Market Pulse data in other cities, the neighbourhoods experiencing the most overbidding this year tend to be those with lower home prices,” says Wahi CEO Benjy Katchen. Being more affordable, these neighbourhoods have tended to attract more attention. “At these prices there is a larger pool of buyers that qualify for financing at this price range,” adds Katchen.

Overall, 35 neighbourhoods across the Halifax region were in overbidding territory, while 21 were in underbidding territory. In four neighbourhoods, homes were selling at-asking. Overall, 96 neighbourhoods had at least one transaction in the Halifax region last quarter, meaning at least 36 were excluded for having too few sales in the report period. During the third quarter last year, 47% of neighbourhoods (51 total) were in overbidding territory.

While overbidding activity is an overall reflection of market behaviour, a neighbourhood could see homes selling for more than asking for a number of reasons. For example, while it could be a symptom of demand exceeding supply, it could also be that sellers are listing their homes below realistic market value in an attempt to attract more bids. “Just because a neighbourhood is in overbidding territory, it doesn’t necessarily mean buyers are overpaying for homes,” explains Katchen. For Nova Scotia homebuyers, Wahi’s CEO has some advice: “Make sure you really understand the data and bidding dynamics in your desired area.”