The Bank of Canada's approach is continuing to impact homebuyers
Nova Scotia's housing market moved further toward balance in July 2026, with more inventory giving buyers greater scope to negotiate offer terms. Months supply of homes for sale rose to 5.5 months in July, up from 5.2 in June and well above July 2025's 4.5 months, according to Nova Scotia Association of REALTORS® data.
That reading is the highest in the trailing 13 months, putting the province close to the six-month threshold that typically defines a balanced market. Months supply had bottomed at 3.1 in January and February.
The shift comes as the Bank of Canada holds its policy rate steady. The central bank held its target for the overnight rate at 2.25%, with the Bank Rate at 2.5% and the deposit rate at 2.20%, at its June 10 announcement. It maintained those rates at its July 15 decision. The Bank has now held its policy rate at 2.25% across six consecutive decisions. It said the economy was showing signs of improvement despite the impact of soaring energy prices tied to the US-Middle East conflict.
Sellers conceding more ground on price
Average sale prices in Nova Scotia eased for a second straight month. Prices are easing back from the spring peak, and list-price ratios are softening further in buyers' favour, the report found. Sale-to-list price ratios and sale-to-original-list ratios both declined from a year earlier, widening the gap between what sellers ask and what they ultimately accept.
That combination — more supply and cooling price momentum, paired with a held policy rate but firmer fixed-rate pricing — has shifted the environment buyers and sellers are negotiating in. A separate Halifax-focused buyer guide noted that most buyers are including a financing condition and a home inspection condition, both of which are widely accepted in the current balanced market.
Mortgage pricing in the province has moved despite the Bank's hold, however. The lowest insured five-year fixed rate available in Nova Scotia stood at 4.04% as of Aug. 7, while the lowest five-year variable rate held at 3.40%. Fixed rates have climbed as government bond yields rose on the renewed conflict in Iran and continuing uncertainty over US trade relations, even as the Bank's overnight rate stayed flat. For brokers, that divergence — a static policy rate paired with firmer fixed pricing — means the negotiating room opening up on price and conditions is not being matched by cheaper financing.
Fewer showings needed to close a sale
Buyer activity has also become more decisive. An average of 8.3 showings per pending sale was recorded in July 2026, the lowest figure in the trailing 13 months and down from 8.7 a year earlier. The lower ratio suggests buyers were moving from property viewings to pending sales more efficiently than earlier in the period.
Nationally, home sales activity has been building steadily. The number of home sales recorded over Canadian MLS® systems edged up 0.5% month-over-month in June 2026, building on a 5.5% jump in May, the Canadian Real Estate Association reported. CREA's senior economist, Shaun Cathcart, said fixed mortgage rates have eased from their peak in April, and rate hikes from the Bank of Canada this year are much less likely than they were just a month ago.
For brokers working Nova Scotia files, the current backdrop combines a steady policy rate with a higher level of housing supply. That may give buyers more room to negotiate offer terms than during the tighter conditions seen in recent years.
