Nova Scotia Real Estate Market Report

August 2025 recorded 1,261 new listings entering Nova Scotia's single-family home market, representing moderate 4.9% growth from the 1,202 properties listed in August 2024. Year-to-date new listings reached 10,346, reflecting consistent 7.9% growth over the 9,586 listings recorded through August 2024. This sustained supply expansion—the eighth consecutive month of year-over-year new listing growth—demonstrates continued seller confidence, though the modest monthly growth rate (4.9%, consistent with July's 3.3%) reflects typical late-summer seasonal patterns as listing activity moderates from spring peaks.

The 7.9% year-to-date new listing growth remains elevated compared to historical norms, indicating that 2025's supply trajectory continues running approximately 8% above 2024 levels. This persistent supply expansion, occurring simultaneously with declining closed sales velocity (-3.3% monthly, +3.0% YTD but decelerating), creates compounding inventory accumulation dynamics where each month's new supply incrementally exceeds absorption capacity, driving progressive buildup in active listings toward potential overflow conditions if demand fails to reaccelerate through fall buying season.

Pending sales data provides mixed forward signals, with 959 properties under contract in August 2025—a modest 5.6% increase from 908 pending transactions in August 2024. Year-to-date pending sales grew 4.0% to 6,790 from 6,526 in 2024. The 5.6% monthly pending sales growth moderately exceeding the -3.3% closed sales decline creates apparent contradiction, suggesting that September transaction volumes may recover to positive year-over-year territory. However, this dynamic likely reflects normal lag effects where August closed sales represent June-July contract negotiations occurring before August's velocity weakening became fully apparent to market participants.

For sellers and their listing agents in Halifax, August's sales decline carries critical strategic implications. Properties entering the market in September-October face heightened challenges: weakening buyer urgency as seasonal demand traditionally moderates, expanding inventory competition (3,485 active listings highest August level since 2020), and potentially deteriorating buyer psychology as negative sales trends generate media coverage and consumer caution. Successful positioning requires aggressive pricing within 0-3% of recent comparable sales, comprehensive preparation emphasizing differentiation, and realistic timeline expectations as average days on market may extend toward 50-55 days through fall versus summer's 45-day efficiency.

August's average days on market of 45 days represents unchanged performance from the 45-day average recorded in August 2024, suggesting continued efficient absorption at the aggregate level. Year-to-date days on market of 46 days increased 4.5% from 44 days through August 2024, demonstrating modest elevation above optimal 40-45 day efficiency ranges. The 45-day August metric maintains remarkable stability despite 8.9% inventory expansion and 3.3% closed sales decline, indicating that properties achieving transactions continue absorbing efficiently while challenged properties face extended exposure.

However, this aggregate stability masks bifurcated market realities. Properties priced competitively within 0-3% of recent comparable sales continue achieving sub-40 day absorption with occasional multiple offers in premium locations. Properties priced 3-7% above current market equilibrium face 55-70 day marketing periods with eventual price reductions. Properties priced 7%+ above market or demonstrating condition issues encounter 80-100+ day exposure with cascading negative effects including market stigma, buyer skepticism, and eventual transaction at levels approximating or below properties initially priced realistically. This segmentation intensifies as inventory expands and buyer selectivity increases, creating winner-take-all dynamics where positioned properties succeed while challenged listings languish.

August 2025's pricing data demonstrates persistent appreciation despite deteriorating transaction fundamentals, with the median sales price reaching $439,900—a robust 5.0% year-over-year increase from $419,000 in August 2024. Year-to-date median pricing through August stands at $458,000, up 5.3% from $435,000 in the comparable 2024 period. The average sales price advanced 7.6% to $483,918 from $449,609, with year-to-date average pricing at $489,449 (+5.4% from $464,202). These appreciation rates—in the 5-8% range—exceed sustainable long-term norms and occur against backdrop of declining transaction velocity, creating potentially unstable configuration.

Examining the three-year August data point progression reveals persistent appreciation trajectory: August 2023 median approximated $390,000, August 2024 reached $419,000 (+7.4%), and August 2025 achieved $439,900 (+5.0%)—indicating modest deceleration but continued robust growth. This pricing behavior—appreciation continuing at 5-8% while sales velocity declines 3.3%—typically proves unsustainable, historically resolving through either: (1) demand resurgence validating current pricing as buyers accept "new normal" valuations, or (2) seller repricing as market feedback indicates current valuations exceed buyer willingness to pay at volumes sufficient to maintain healthy turnover.

The inventory surge reflects compounding imbalances: sustained new listing growth (7.9% YTD) substantially exceeding closed sales growth (3.0% YTD) creating progressive accumulation. Unlike spring months where robust absorption (5-8% closed sales growth) mitigated inventory expansion, August's negative sales velocity allows supply to accumulate unchecked, building toward potential overflow conditions. If September-October continue this pattern—typical fall seasonality sees both new listings and closed sales moderating—inventory could stabilize near current 3,400-3,500 levels rather than contracting toward winter lows, maintaining elevated supply pressure through traditionally slower months.

Analyzing August 2025's inventory composition reveals distribution patterns signaling market stress. Approximately 40% of inventory represents properties with under 30 days of market exposure (fresh listings), while roughly 32% have accumulated 30-60 days on market, and 28% demonstrate 60+ days of exposure. This distribution marks deterioration from July's 42%/32%/26% pattern, suggesting that inventory turnover is slowing and properties are increasingly transitioning to extended-exposure categories without achieving sales despite stable 45-day median absorption metric.

The expanding 28% extended-exposure cohort—approximately 976 properties—represents both the primary concern and opportunity in August's market. This segment's growth from 25-26% in June-July to 28% in August indicates that a meaningful and growing percentage of inventory faces absorption challenges due to pricing misalignment, condition issues, or inadequate marketing. For sellers, this expansion signals that aggressive initial pricing becomes critical to avoid joining the extended-exposure cohort where market stigma, buyer skepticism, and eventual price reductions become increasingly probable. For buyers, this growing segment represents expanding value opportunity, as sellers with 75+ days exposure increasingly face motivation creating 4-6% below-ask acquisition potential with favorable terms.

For Buyers and Investors: August 2025 represents increasingly favorable acquisition timing as velocity weakening and inventory expansion combine to enhance buyer negotiating leverage. Strategic buyers should capitalize on deteriorating seller psychology, recognizing that fall seasonal slowdown may further improve conditions before typical late-year inventory contraction restores seller leverage. The expanding 28% extended-exposure cohort offers optimal targeting for below-market acquisition with 4-6% discount potential and favorable closing terms.

For Sellers: August's sales decline (-3.3%) combined with inventory surge (+8.9%) creates the most challenging seller environment observed in 2025. Properties entering the market September-October face maximum difficulty: weakening buyer urgency, expanding competitive inventory, deteriorating affordability, and potentially negative media coverage amplifying caution. Success requires aggressive pricing at or below recent comparable sales, comprehensive preparation, enhanced marketing investment, and realistic timeline expectations recognizing that fall averages may extend to 50-55 days versus summer's 45-day efficiency.

Market Outlook: August 2025's data reveals a market at critical inflection. The second consecutive sales decline, combined with accelerating affordability deterioration and near-peak inventory levels, suggests the market may be approaching demand exhaustion at current pricing. Fall 2025 will prove definitional: if velocity recovers and pending sales convert successfully, current conditions may represent temporary seasonal weakness; if declines continue or accelerate, systematic repricing toward affordability-sustainable levels may prove necessary through winter and into 2026.