The Bubble…

Housing?! Covid!? Tariffs??

No, the bubble I’m talking about today is a concept about an invisible popularity bubble around HRM, and how you could use this to your advantage.

There’s an invisible irregular circle within HRM, that, if inside this circle and the property is priced appropriate to comparables, your demand is High. You’re likely to have strong viewings, pricing power, and accepted offer within 30 days. If you’re on the other side of the line, just the opposite, few viewings, low bids, and may be waiting several months, if not even years depending on the property.

This bubble ebbs and flows, grows and shrinks, has little side bubbles, but the trend is for it to always get bigger, on average, over time. What makes in vary in size? Several factors. There is no better example than the pandemic housing, where the bubble grew to the biggest it’s ever been. It stretched from Tantallon, to Enfield, to Porter’s Lake. Everything seemed to sell like hotcakes. As the craze took it’s natural course, the bubble decided to recede back to a slightly bigger version of it’s pre-pandemic size. The demand normalized but the population increase has made it permanently bigger. This is the biggest factor for permanent increase in size in this imaginary line. As the plans for population growth of getting 2 million people in 35 years, with a disproportionate majority coming into HRM, this will naturally increase the size, it’ll redefine what is thought of, as being “close to the city”.

The bubble even changes with the season. Just like the human body diverts heat back to the core when it’s cold, so does the real estate market. Areas that are on the edge of the bubble, suddenly to seem to hit a wall in the fall. These properties can sit all winter, while properties in the core continue to sell all winter long. Then as we’re hitting the spring season now, the extremities also start warming up.

So, how could I use the bubble to my advantage? To modify an old adage, Buy outside The Bubble, Sell within The Bubble. Now for buying, you want to be as close to the Bubble edge as possible, preferably a place that may have just fallen out of it, an area that normally sells well but has properties that have been sitting all winter, especially if they’ve had a deal fall through. As we’re approaching the busy season and the bubble begins to expand, if you’ve been considering selling, this may be your opportunity to do so, or if you’re property maintains outside the bubble, you may have to consider longer term options until the bubble comes to grow.

Where is the bubble now? At the time of this writing the bubble is growing with the spring market and with what appears to be a relatively balanced market. This line appears to be from Timberlea/Hammonds plains to Fall River, to Lawrencetown.

Old Rules of making wise decisions in Real Estate still apply: Location, Location, Location.

Many believe building a new home is more expensive than buying one, but in Nova Scotia, that’s not necessarily true anymore. During the pandemic, construction costs soared due to high material prices and labor shortages, but the market has since shifted; material costs have dropped, and there’s now a better supply of builders, making constructing your dream home potentially just as affordable, if not more so, than purchasing an existing one

Building has become more popular, as according to Statistics Canada in December value of permits increased 12.8% to 283 million MoM, and number of residential units created was 975, an increase of 69.3%!

Why Build?

Buying a pre-existing home may seem cheaper at first, but most older homes need major repairs or upgrades within a decade. With a brand-new home, you’ll avoid the costly renovations and repairs that come with older houses. Additionally, modern homes are built to higher standards of efficiency and health consciousness, potentially lowering total ownership costs while also creating a safer living environment for your family.

Build Your Dream Home Today

Why settle for someone else’s vision when you can design your own? A local mortgage broker can offer advice tailored just for you, making building your dream home both a personal achievement and a smart financial move. Let’s start this journey together and create a home that’s as unique as you.

Mortgage Renewals in Canada 2025: How Homeowners Can Navigate Rising Rates

If you’re a homeowner in Canada, 2025 is a crucial year for your mortgage renewal. The numbers don’t lie: mortgage interest rates are now double what they were back in 2020, and that’s a big change you need to prepare for. Here’s what homeowners need to know—and why you can’t afford to wait until the last minute to renew.

The Rate Hike: What’s Changed Since 2020?

In 2020, Canadians enjoyed historically low mortgage rates. For the most popular 5-year fixed term, rates hovered between just 2.00%-2.40%. Fast forward to 2025, and the average 5-year fixed rate has jumped to around 4.40%—that’s double the interest rate of just five years ago.

This rate increase is hitting homeowners hard, especially since over 1.2 million fixed-rate mortgages are up for renewal in Canada this year. That represents a staggering $300 billion in mortgage loans—and many Canadians are struggling to adjust to the higher payments.

Why You Might Be Facing Higher Payments

For many homeowners, the bulk of their monthly mortgage payment has been going toward the interest, not the principal. This means that despite making payments for several years, the actual amount they owe on their mortgage hasn’t been significantly reduced. Now, when it’s time for renewal, many will face an unexpected shock: higher payments based on the new, doubled interest rates.

Add to this the fact that many Canadians are already feeling the squeeze from other rising costs—vehicle loans, lines of credit, personal loans, property taxes, insurance, and more. With all of these increases, it’s no wonder that homeowners are starting to feel the pressure.

The Problem: Procrastination

Too often, homeowners wait until the last minute to deal with their mortgage renewal. This delay can be a serious mistake, leading to stress, financial strain, and even missed opportunities. If you don’t plan ahead, you may find yourself scrambling to manage a significant increase in your mortgage payment—something that could have been avoided with just a little foresight.

What You Should Be Doing NOW

The key to managing your mortgage renewal in 2025 is planning ahead. Don’t wait until your renewal date is just around the corner. Here’s what you can do now to make sure you’re prepared:

1. Start Talking to Your Mortgage Broker or Bank Early
   The earlier you start the renewal process, the better. At least 6 months before your renewal is ideal, but if your financial situation has changed recently, it’s smart to start up to a year in advance.
2. Review Your Financial Situation
   Take a close look at your current financial situation. How have your income, expenses, and debts changed over the last few years? If you’re carrying other high-interest debt (like personal loans or credit cards), it might make sense to consolidate them into your mortgage, especially if your mortgage rate is lower than the rates on your other loans.
3. Get Expert Advice
   I recommend speaking with a mortgage broker, a financial advisor, or even an insolvency trustee if you’re concerned about your debt load. As a mortgage broker, I take a comprehensive look at my clients’ entire financial situation and work with them to find the best options for managing debt and preparing for the future.

Why Act Now? The Urgency Is Real

By taking action today, you can secure a better rate, consolidate debt, and avoid the stress of last-minute decision-making. Waiting too long can lead to missed opportunities or even worse—financial hardship down the line.

It’s time to take control of your mortgage renewal. Don’t let rising interest rates catch you off guard—let’s start planning now so you’re ready for 2025.

If you’re ready to discuss your mortgage renewal options, contact me today. Together, we’ll craft a strategy that works for you, so you can move forward with confidence and peace of mind.