Halifax Real Estate Blog

Already Optimistic Predictions for the Nova Scotia Economy Continue to Improve

We’ve already felt the boost this November in real estate in the Halifax-Dartmouth area, and you certainly can’t miss the optimism in the air, ever since we learned that indeed the Ships WILL Start Here! But this week the TD Bank has announced even more promising news, predicting that Nova Scotia could well be the fourth-best-performing economy in Canada by 2013 with many “ripple-down” positive effects for the rest of the province, and more. John Demont with the Chronicle Herald has the report.

Halifax’s $25-billion naval shipyard contract will single-handedly transform Nova Scotia’s underperforming economy into one of the strongest in Canada by 2013, a TD Bank Group economist predicts.

Talk about a turnaround: this year, before the Halifax Shipyard contract begins to have an impact, Nova Scotia’s economy is slated to grow by a modest 1.4 per cent.

The bank had been expecting the economy to limp along during the next two years. But since the awarding of the shipyard contract, TD is far more optimistic about Nova Scotia’s prospects. So much so that its economics department has taken the unusual step of updating its prognosis for the provincial economy.

“This contract has the potential to offer a better standard of living and more long-term stability for the province,” TD economist Sonya Gulati said Monday.

She added that the contract could help slow the exodus out of Nova Scotia by “making people do a double take as to whether or not they have to leave.”

Gulati predicts the provincial economy will grow by 2.6 per cent in 2013, which is 0.5 per cent more than originally expected.

By the bank’s reckoning, that should leave Nova Scotia — previously dead last in terms of expected GDP growth in 2013 — tied with Newfoundland and Labrador as the fourth-best-performing economy in the land. (Alberta, Saskatchewan and Ontario are expected to lead the country.)

Halifax Regional Municipality, which is forecast to grow by 3.2 per cent in 2013, will do even better than the province.

The shipbuilding job bonanza is already slowly starting. The Irving family-owned Halifax Shipyard has received 2,000 applications since the contract was awarded on Oct. 19.

So far, the yard has hired 50 people, most of them electricians. But at peak, Irving spokeswoman Mary Keith says, 1,000 of the 2,700 people expected to be working at the shipyard should be in white-collar sectors like IT, engineering and finance.

Those numbers don’t surprise TD’s Gulati. She expects the impact of the shipyard contract to ripple through most sectors of the Nova Scotia economy. Under the federal government’s Industrial and Regional Benefits policy for procurement contracts, a substantial amount of the work must go to small- and medium-sized enterprises, which make up the lion’s share of the provincial economy.

She also thinks benefits will spread far beyond the boundaries of the Halifax region. The reason: some 70 per cent of Nova Scotia’s manufacturing companies are located outside Halifax. The same is true of roughly 40 per cent of the province’s research and development, engineering and technical consulting firms.

That’s music to the ears of Bert Lewis, business development manager of Mulgrave Machine Works Ltd. in Mulgrave.

“Our expectation is that there will be such a volume of work that one yard will not be able to handle it,” said Lewis, whose custom metal fabrication company hopes to design and fabricate pressure vessels and tanks for the shipyard contract.

“We are ready, willing and able to support that initiative and look forward to being part of it.”

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If you have questions, or want advice on Buying or Selling a home, get in touch with The Bagogloo Team of RE/MAX nova by email at info@halifaxmetrohomes.com or call 902-830-9006.

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What does the shipbuilding announcement mean for the housing market?

As everyone now knows, Halifax's Irving Shipbuilding has won the competition for the combat vessel procurement, and our region will stand to benefit from up to $25 Billion in spending related to that contract.

The project will likely have positive impacts in all of the City, Province and Region, with forecasts from the Provincial Government predicting thousands of jobs created, millions in tax revenues among other economic spinoffs

For residents of HRM, the project will mean growth in our housing market, and an influx of people to the HRM. There have already been public appeals from James Irving (Irving Shipbuilding) and others for Maritimers who had travelled West looking for work in the trades to come home. Whether it's workers returning to Halifax after having left or new migrants to the city, we will almost certainly see increased levels of net in-migration to HRM, and this trend should continue for much of the contract’s life (up to 30 years). The Chronicle Herald's Paul MacLeod writes today that Irving has said their shipyard workforce will increase over the life of the contract from 1100 to 2700, with an average workforce of 2400 to 2500 - this is in addition to the workforce that will inevitably be needed for shipyard renovations and expansion, and all the spinoff job creation in the supply chain, infrastructure, construction (residential and commercial) etc... So, we'll have more people and more skilled labour.

What does that mean for housing?  At first, not much. It will take at least a year for the "umbrella agreement" between Irving and the Federal Government to be negotiated, and until that's done little is really known about specifications required for either the ships or the yard itself. Once that hurdle has been cleared, construction and upgrades will commence at the yard and no doubt hiring will begin as the ramp-up to production begins. Initially, we will see more demand for housing all over HRM as trades people begin to move home or relocate here to be part of the project.  There is not one specific area of HRM likely to benefit more than others, as the increase in home buyers will likely be made up of people with varying backgrounds, levels of experience, and purchasing power. Over time, as the project unfolds, the first-time homebuyer segment should see larger increases in demand, which will put upward price pressure on the whole housing market in HRM. Expect to see an increase in housing starts for both single family and multi-family new home construction, and overall an increase in buying activity within the housing market as a whole. Throughout this, average prices should rise year after year on a more aggressive pace than what we've seen since 2007.

Although we'd all like this project to make an instant difference economically, it's important to realize that it will take time to ramp up production and spending, and then trickle down through the city's economy.  Although consumer confidence will undoubtedly see a boost right away, it will take time for demand effects to be seen within the HRM housing markets, and it may be up to three full years before real growth effects are felt by buyers and sellers. In the short term, resale sales should begin to rise first, followed later by an increase in new home construction.

This means that now is an excellent time to buy a home, either as a residence or for investment – given that we are poised to see increases in demand for most types of residential homes, as well as a gradual bump in average prices, now is the time to get in before these changes work their way through the markets. Take those factors into consideration along with historically-low mortgage rates and you have an almost unique opportunity to buy before what we all expect to be several good years in the HRM property market.

There's no doubt this announcement is a boon to our area, and will have a far-reaching impact on our whole region - the sum total of which has yet to be seen or quantified. We look forward to helping all of our clients navigate the coming changes smoothly and while taking best advantage of them, provide the best value possible and professional, expert service.

Some of the information contained in this blog post consists of forward-looking statements and should not be relied upon as professional advice. For more detailed analysis or help with specific questions, call The Bagogloo Team at 902-830-9006 or email info@halifaxmetrohomes.com.

 

The Bagogloo Team

October 20, 2011

5 tips to stage your home like a pro

The gap between well prepared and poorly prepared listings is widening in metro. The better prepared listings are selling on average faster and for more money. Take advantage of the opportunities to distance yourself from the competition with tips like these, with the advice of your REALTOR, or the advice of a professional stager. Yahoo News has tips and tricks to staging.

When the housing inventory is bursting at the seams, it is tougher than ever for sellers to entice homebuyers. That doesn't mean home sellers should just give up.

Instead, they should take proactive steps to stage their homes so potential buyers can envision themselves living there as soon as they walk through the doors. Professional home stagers set up furniture, decor and accessories to present homes in their best light.

Using the tricks of professional home stagers, you too can stage your home to sell.

Highlighting and downplaying - The key element to staging your home like a professional is to highlight the strengths and draw attention away from weaknesses.

"Organize all of the cabinets," says Melinda Massie, owner of Organizing with a Side of Fabulous, a professional organizing and home-staging company in Fort Worth, Texas. "Messy cabinets make it look like you don't have enough storage. Storage sells."

If the weakness in the family room is the old brick fireplace, then decorate the room to distract attention from it. For example, embellish the two built-in bookcases that flank the fireplace.

 

Float your furniture - When arranging furniture, make the rooms look spacious. Control the flow of the room. Home sellers tend to push furniture against walls to create space, but "floating" the furniture -- creating furniture groupings away from walls -- adds space to the room.

For example, group a love seat, coffee table and two wingback chairs across from the sofa, all in the middle of the living room on a decorative rug. Dawn Ohnstad, an agent with Coldwell Banker Burnet in Wayzata, Minn., says rooms should almost be bare of furniture (but the furniture should be in good condition).

 

Repurpose rooms - Melissa Riche, president of Great Place LLC, an interior styling and home-staging company in Los Angeles, advises sellers to give each room a purpose. If you have a spare bedroom that can be used as a storage room, start by decluttering the room. Instead of a junk room, create a craft room, sewing room, reading room, office or game room.

When each room has a purpose, you show how the space can be used -- without clutter.

Lighting is everything - Lighting makes a home appear welcoming and inviting. Unfortunately, many homes do not have the proper lighting to create this ambience.

Replace low-wattage light bulbs with higher wattages. Have 100 watts of light for every 50 square feet of the room. Each room should have three types of lighting: general (overhead), task (pendant or reading lighting), and accent (lamps or wall sconces).

If you are fortunate enough to have natural lighting, then use this to your advantage when showing your home. Open all the shades halfway so light streams in. "Remove heavy drapes -- they block light and make rooms appear smaller," Riche says.

Give bathrooms the spa treatment - Add accessories to your bathroom that transform it from a regular bathroom into a spa. When you visit a spa, you often find large and small towels rolled up and displayed inside of a basket or arranged on a decorative tray. Adding candles (lit or unlit) is another way to create a peaceful and calming atmosphere in your bathrooms, says Chantay Bridges, an agent with Clear Choice Realty & Associates in Los Angeles. It's all about creating a welcoming space.

No matter what the situation is in the housing market, you want to make your home as appealing as possible to potential buyers. Presentation is everything and can mean the difference between offers rolling in and your house languishing on the market.

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If you have questions, or want advice on Buying or Selling a home, get in touch with The Bagogloo Team of RE/MAX nova by email at info@halifaxmetrohomes.com or call 902-830-9006.

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Halifax Real Estate Channel - 202 Kingswood Drive, Hammonds Plains

Now showing on the Halifax Real Estate Channel:

202 Kingswood Drive, Hammonds Plains

View 202 Kingswood Drive Listing Details

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Halifax Relocation Show Passes 10,000 Views on YouTube!

On October 22, 2006, we launched our first video on on YouTube called "Halifax, Nova Scotia: Picture Perfect".

In just over two years online, this video has been viewed on YouTube 10,000 times! Thanks to everyone that has watched. If you like the photos featured in he slideshow, you may also enjoy the sequel: "Nova Scotia - Canada's Ocean Playground".

Be sure to check out our Halifax Real Estate Listing shows on the The Bagogloo Team Channel on YouTube: www.youtube.com/TheBagoglooTeam

 

Halifax Real Estate: Views of Glen Arbour Golf Course

Today would have been a great day to go golfing at Glen Arbour Golf Course - a Championship course that is well regarded throughout the world, and was home of the 2005 LPGA Championships.

Please enjoy the slideshow of images from Glen Arbour Golf Course: